AI shopping tools are emerging as the next big shift in online retail, as they can autonomously research, compare and purchase products for consumers.

Are they? So far no one is making money out of AI, beyond rising prices and bundling in AI to justify the cost (looking at you Microsoft).

We are so far into bubble territory it’s rediculous. PayPal signs a deal to be a payment provider for Chatgpt, a place where no one is spending money. And their shares go up 13%!

This deal hasn’t brought in even a penny of revenue, and no one is using chatgpt to buy stuff. Yet based purely on AI hype, the idea it might be used to “compare products” now means a company already worth $67bn is boosted 13% in share price.

So far the AI companies are not making a profit. They’re scaling up and, because it’s so damn expensive, they’re just scaling up massive losses. Even with revenues materialising from no where profit is non existent. And companies - the actual end users - spending all this money on AI are eventually going to measure the benefits. So far there is little to no evidence that it’s good value for money.

Yet we’re so far into the bubble that companies are laying off staff to save money, which then “justifies” the AI spend. Look at Amazon today sacking 14,000 from its corporate offices to make use of AI.

Meanwhile the real economy is flat, with inflation above central banks targets. When the bubble bursts it’s going to cause a lot of pain. No doubt some people will walk away very rich, and in 10 years there will of course be some form of AI. But a lot of people are going to get burnt on the way.