The Current AI Surge Differs Significantly from the 90s Dot-Com Bubble

November 8, 2025 - 20:48

In a recent discussion, BMO Private Wealth's chief market strategist, Carol Schleif, explored the current state of artificial intelligence (AI) in the financial markets. She addressed concerns regarding whether the enthusiasm surrounding AI might mirror the dot-com bubble of the late 1990s. Schleif emphasized that today's AI boom is fundamentally different from that era, highlighting the substantial advancements in technology and infrastructure that support AI development.

Schleif also examined the trend of major technology companies financing their AI initiatives through debt, raising questions about the sustainability of such financial strategies. The conversation underscored the importance of distinguishing between genuine technological innovation and speculative investment behavior. As AI continues to evolve and integrate into various sectors, investors are urged to approach the market with a discerning eye, recognizing the potential for both growth and risk in this rapidly changing landscape. The insights shared reflect a cautious yet optimistic perspective on the future of AI in the economy.