Bring on the bursting of the AI bubble! History doesn’t repeat itself, but it rhymes

There’s a quote often linked to Mark Twain: “History doesn’t repeat itself, but it rhymes.” It’s a clever way of saying that, even as times change, people and technology fall into familiar patterns. Right now, in the world of artificial intelligence, that idea feels especially true. We’re living through an incredible time, maybe the biggest tech shift since the internet came along. But just like during the dot-com boom in the late ‘90s, or the rush to go digital after the 2008 financial crisis, today’s AI craze has all the classic signs of a bubble. And that’s not a bad thing. In fact, if history is any guide, the eventual bursting of this bubble may be exactly what AI needs to evolve from hype into the most valuable general-purpose technology of the 21st century.

The Dot-Com Boom: Hype, Collapse, and Unstoppable Growth

To see where AI might be going, it helps to look back at the dot-com era. Between 1997 and 2000, billions flooded into internet startups—many without revenue, a plan, or even a real product. Prices soared for no good reason. Wild predictions were everywhere. It felt like the world would change overnight. And then, almost as fast as it arrived, the bubble popped. The crash wiped out trillions and took down thousands of companies. But it didn’t kill the internet. If anything, it cleared out the noise. Innovators had to get real or get out. That’s how Amazon, Google, Salesforce, and today’s digital economy started to take shape. When the dust settled, the internet wasn’t a fad. It was infrastructure.

2008: Crisis as a Catalyst for the Digital Marketing Revolution

Fast-forward to 2008. The global financial system shuddered. Industries collapsed. But in the midst of that chaos, something else happened: digital marketing exploded. Why? Because recessions force businesses to find efficiencies. They accelerate the adoption of tools that offer precision, scalability, and measurable return. Traditional advertising couldn’t offer that, but digital could. The crisis didn’t destroy innovation; it accelerated it. Google Ads, Facebook Ads, SEO, CRM systems, automation platforms—all became mainstream, not in spite of the recession, but because of it. Once again, history didn’t repeat itself, but it certainly rhymed.

Today’s AI Boom: A Bubble by Any Definition

Now we arrive at 2025’s AI surge—arguably the most euphoric, breathless, over-capitalised hype cycle since the dot-com bubble. Consider the symptoms:

• Sky-high valuations detached from revenue reality
• Startups raising millions with no path to profitability
• A race to build scale before business models even exist
• Founders and investors betting on “future dominance” rather than present fundamentals

This isn’t speculation. It’s déjà vu. We’re in the thick of an AI bubble right now. Some people worry this means the whole industry will fall apart, but history tells a different story: Bubbles don’t destroy great technologies. They refine them.

Why the Bursting of the AI Bubble Will Be a Good Thing

A correction—whether gentle or severe—will likely have three powerful effects:

1. It clears out noise and unsustainable business models.

Just as the dot-com crash left behind only the companies solving real problems, an AI correction will favour organisations that deliver genuine value, robust products, and clear ROI.

2. It forces innovation towards efficiency and applicability.

Bubbles thrive on imagination. Post-bubble markets demand execution. That pressure is healthy.

3. Recessionary environments accelerate automation and AI adoption.

This has been true for every major technology cycle. When labour costs rise, growth slows, or margins tighten, businesses turn toward tools that cut costs, increase output, and remove friction. AI is tailor-made for that moment. Put simply: a downturn won’t end AI. It’ll make it stronger.

The Coming Recession Will Supercharge AI Adoption

If, as many economists predict, the global economy enters a recession in the next cycle, AI won’t be its casualty—it will be its catalyst. Businesses will adopt AI not because it’s trendy, but because they must. Automation, augmentation, and intelligent workflows will move from “innovation” to “survival strategy.”Just like the internet after 2000. Just like digital marketing after 2008. Just like every major technology that started as a bubble before becoming a pillar of modern life.

Conclusion: Bring On the Bursting of the Bubble

It may sound contrarian, but it’s true: When the AI bubble finally bursts, it’ll be one of the best things that could happen to artificial intelligence. It will separate the durable from the disposable, the visionary from the vaporware, and the sustainable from the speculative. History doesn’t repeat itself, but it rhymes. And if the rhyme holds, AI isn’t heading for collapse—it’s heading for maturity. When the bubble finally pops, don’t panic. Celebrate. That’s when AI stops being all hype, and starts becoming a real part of our lives.