Trillions of dollars have been invested into AI.
The leading AI companies are still cash flow negative.
There’s a disconnect between investment and results that should concern everyone paying attention.
The question isn’t whether AI works. It clearly does. The question is whether AI spending produces productivity or just inflation.
Right now, companies are borrowing money to build AI infrastructure. That money is flowing into the economy. Economic activity looks healthy. But is it productive activity, or is it speculative activity?
Productive activity means the same number of people generate more output. It means processing times shrink. It means error rates fall. It means capacity expands.
Speculative activity means money moves around without fundamentally changing how work gets done.
The honest answer? Most AI investment today is producing inflationary value, not productivity gains.
Companies are spending the money, but they’re not measuring whether that spending translates into operational improvement.
This matters because the entire premise of AI is that it drives economic growth.
If we’re just creating hype without substance, we’re building another bubble.
The companies that will win aren’t announcing AI initiatives.
They’re measuring whether those initiatives actually increase output.
Frome Shaping FinGenAI podcast: https://lnkd.in/guzh3nrR
