Artificial intelligence will create clear winners but also lead to widespread failures, according to the head of Cisco Systems, who said the current surge in investment shows signs of a market bubble even as the technology reshapes industries and jobs.
AI Growth And Market Risks
Chuck Robbins, chairman and chief executive of Cisco Systems, told the BBC that AI will be “bigger than the internet” but warned that many companies will not survive the current phase of investment. He said large amounts of capital are being directed into the sector and some of it will be lost as weaker firms fail.
His comments follow growing concern from senior figures in finance and technology about whether the pace of spending on AI is sustainable. JPMorgan Chase chief executive Jamie Dimon has said some AI investment would “probably be lost”, while Alphabet chief executive Sundar Pichai has pointed to signs of irrational behaviour in the market.
Dotcom Comparisons And Cisco’s History
Sceptics have compared the AI boom to the dotcom era of the late 1990s. Cisco was the world’s most valuable company in 2000 before losing about 80% of its value when that bubble burst. Robbins acknowledged the similarities, saying the current environment feels familiar, but argued that lasting value would still emerge.
Cisco has since rebuilt its business and now provides critical infrastructure that supports AI systems. The company works with firms such as Nvidia and reported £1.3bn in orders in the current quarter alone.
Robbins said that while money would be invested in companies that fail, successful products and applications would continue to develop, much as they did after the dotcom crash.
Impact On Jobs And Skills
Robbins said AI will change the nature of work, with some roles altered and others removed entirely. He pointed to customer service as one area where companies are likely to need fewer staff.
He urged workers to adapt rather than resist the technology, saying people should be more concerned about being outperformed by colleagues who use AI well than by AI itself.
Security And Online Risks
Robbins also highlighted risks linked to online security, saying AI will improve the effectiveness of cyber attacks and make scams harder to detect. He said Cisco is using quantum technology to reduce those risks.
He added that major technological shifts have historically brought new security challenges and said the industry has consistently developed tools to address them.
Global Competition And The UK’s Position
The US and China currently dominate AI development, but Robbins said the UK is also making progress and has a strong chance of becoming an AI power. He said countries that adopt the technology early are more likely to benefit from its development.
Role In US Politics
Alongside his work at Cisco, Robbins acts as a link between major businesses and the White House as chair of the Business Roundtable. He said business leaders often achieve more by engaging privately with the administration of Donald Trump rather than through public criticism.
Robbins said the current administration is highly accessible and open to dialogue, even when there is disagreement.
Featured image credits: swiss-image.ch via Flickr
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