As fears over the artificial intelligence bubble bursting linger in global markets, one Southeast Asian tech founder thinks it could be a much-needed reset to a crowded space.
Dylan Tan, founder of replyr.ai, a Singapore-based start-up that creates customer service chatbots, said there was a disconnect between the investor hype driving up tech stocks and an understanding of how AI would transform the future of businesses. Replyr.ai was founded with venture capitalist funds in 2023.
“Everything is labelled as AI even when there’s no real AI inside. That won’t end well,” he told This Week in Asia. “A correction will wipe out the noise, and that’s actually healthy for the region.”
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Stock markets, including those in the US, China and Japan, have been riding a wave of AI optimism amid promises of revenue and productivity boosts. But on November 21, investors were given a reality check when hundreds of billions of dollars’ worth of value were wiped out on concerns that tech firms were overvalued.
America’s “Magnificent Seven” tech giants – Google owner Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – have been among the key beneficiaries of the AI-driven rally. They have led a tech rally that currently claims a 30 per cent share of the S&P 500’s estimated total market capitalisation of US$58 trillion.
Nonetheless, even Google’s top executives have warned against “elements of irrationality” propelling share prices to record highs.