WICHITA, Kan. (KWCH) – As artificial intelligence becomes increasingly embedded in business operations, some economists are raising concerns about inflated expectations that could be forming a financial bubble with potential economic consequences if it collapses. Dr. Larry Straub, a business professor at Newman University, cautioned that while a burst may not trigger a global crisis, it could lead to a period of economic recalibration and recovery.
“I don’t think the world’s gonna end if this bubble bursts, but I do think it could hit a fallback position and kind of have to rebuild,” Straub explained.
AI adoption is now widespread across major U.S. corporations. However, Straub believes the current enthusiasm may outpace realistic timelines for technological maturity. “I think there’s somewhat overblown expectations on AI right now. Not that they won’t ever be realized, but I think people are overestimating how quickly they’ll be realized,” he said.
Despite these concerns, Straub remains positive about AI’s long-term role and encourages students to engage with the technology. Anthony Canavino, a senior in his class, noted that when given the chance to use tools like ChatGPT, most students embrace the opportunity.
Canavino, who will graduate next year, isn’t worried about AI replacing his future career prospects. Still, he acknowledges that some firms may exaggerate the capabilities of their AI systems. “I think most of them are bad actors, and I guess you could call that a bubble,” Canavino remarked.
Straub emphasized that both supporters and skeptics tend to amplify AI’s potential too dramatically. He advises organizations to adopt a measured approach—leveraging the technology while allowing time for organic development. “This is a cool technology, it’s a fundamental technology… but the downsides of it and the upsides of it are both overblown. Just keep it in the middle and it’s going to be okay,” he concluded.
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AI expectations creating economic bubble that could burst, expert says
WICHITA, Kan. (KWCH) – Economists warn that with the usage of AI quickly increasing, it may be creating a bubble – which spells danger for the economy if it bursts. n nDr. Larry Straub, a business professor at Newman University, said that if that bubble bursts, it won’t be the end of the world, but that the economy will take a hit. n n“I don’t think the world’s gonna end if this bubble bursts, but I do think it could hit a fallback position and kind of have to rebuild,” Straub said. n nAlmost every major company in the US is using AI as a tool. Straub said he thinks people may be overestimating AI. n n“I think there’s somewhat overblown expectations on AI right now. Not that they won’t ever be realized, but I think people are overestimating how quickly they’ll be realized.” n nHowever, Straub is optimistic about AI and encourages his students to use it. Anthony Canavino, one of his senior students said, “When Straub gives us the opportunity to use ChatGPT, I think most of us take advantage of it.” n nRelated Content: n nIT experts: AI changing job market expectations n nTeachers implementing AI into lesson plans n nWichita Public Schools examines AI policy, discusses benefits of potential changes n nCanavino will be graduating next year, but says he doesn’t feel threatened by AI. He does believe some companies are stretching the truth on its capabilities. n n“I think most of them are bad actors, and I guess you could call that a bubble,” Canavino said. n nStraub said that people on both sides are overhyping AI, but he believes it’s here to stay, and advises companies to be patient and wait for it to grow. n n“This is a cool technology, it’s a fundamental technology… but the downsides of it and the upsides of it are both overblown. Just keep it in the middle and it’s going to be okay,” Straub said.