AI Bubble: Artificial Intelligence-Fueled Market Euphoria is History Repeating
Australian Financial Review
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Details
- Date Published
- 15 Jan 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 15 Jan 2026, 06:02 pm
Description
The artificial intelligence-fuelled market euphoria is a new telling of an old story that will not play out differently – but it may have some way still to go.
Summary
The article highlights the parallels between the current artificial intelligence market boom and historical financial bubbles, suggesting a potential burst similar to past economic crashes. The discussion focuses on the widespread enthusiasm for AI, drawing comparisons to the speculative frenzy of the 1920s and the dotcom boom. While it doesn't delve deeply into existential AI risks, it questions the sustainability of the AI-driven market euphoria, pointing towards the potential for substantial economic implications should the bubble burst. There is limited direct engagement with AI safety or governance frameworks, but the analysis indirectly highlights the need for caution in managing emerging AI capabilities within financial markets.
Body
John PlenderJan 16, 2026 – 5.00amBe warned. We are reliving the Roaring Twenties. Not quite a new Jazz Age – jazz is a bit tired these days. But artificial intelligence euphoria is rampant, crypto lunacy is rife, credit is bubbling in private markets and the US is once again at the heart of a global fiscal and financial maelstrom. Close to 100 years on, we have to ask: does another 1929 crash loom?A related and pertinent question is whether we are in a bubble. Former Federal Reserve chairman Alan Greenspan famously remarked during the dotcom boom of the late 1990s: “Bubbles generally are perceptible only after the fact. To spot a bubble in advance requires a judgment that hundreds of thousands of informed investors have it all wrong. Betting against markets is usually precarious at best.”Loading...Financial TimesSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginFollow the topics, people and companies that matter to you.Find out moreRead MoreGlobal economyUSATrump's AmericaOpenAIAINvidiaReviewSharemarketDonald TrumpCryptocurrenciesBitcoinFetching latest articles