The AI Boom: A Quick Bubble Burst Leading to an Even Mightier Comeback, Predicts NTT DATA's Leader Imagine a world where artificial intelligence isn't just a fleeting fad but a transformative force reshaping our future—yet with a potential bubble that's set to pop sooner than you think. Dive in, because this prediction from a tech giant's chief could change how you view the AI landscape. But here's where it gets controversial... will this rapid rebound come at the expense of jobs and workers? Let's explore what NTT DATA's head has to say, and why it might spark heated debates among investors and everyday folks alike. In this illustration, small figurines holding computers and smartphones stand before the NTT DATA logo, captured on February 19, 2024. (REUTERS/Dado Ruvic/Illustration/File Photo – Purchase Licensing Rights, opens new tab: https://www.reutersconnect.com/item/illustration-shows-ntt-data-logo/dGFnOnJldXRlcnMuY29tLDIwMjQ6bmV3c21sX1JDMlA1NkFEUkNWWQ%3D%3D/?utmmedium=rcom-article-media&utmcampaign=rcom-rcp-lead) MUMBAI, Dec 5 (Reuters) – According to the leader of Japan's IT powerhouse NTT DATA Inc., any looming artificial intelligence bubble is expected to fizzle out quicker than previous tech booms, paving the way for a more robust recovery. This will happen as businesses ramp up their adoption of AI to match the massive investments poured into infrastructure, CEO Abhijit Dubey explained during a chat at the Reuters Global Markets Forum (opens new tab: https://apac1-apps.platform.refinitiv.com/cms/?navid=51883). To stay in the loop, sign up here (https://www.reuters.com/world/asia-pacific/ai-bubble-be-short-lived-rebound-stronger-ntt-data-chief-says-2025-12-05/undefined?location=article-paragraph&redirectUrl=%2Fworld%2Fasia-pacific%2Fai-bubble-be-short-lived-rebound-stronger-ntt-data-chief-says-2025-12-05%2F). Dubey emphasized with certainty that over the medium and long haul, AI represents a profound and enduring shift in how we live and work—what experts call a 'secular trend,' meaning it's not a short-term spike but a lasting change driven by fundamental forces. 'And this is the part most people miss: even though there might be setbacks, the core momentum is unstoppable,' he noted. Looking ahead to the next year, he anticipates a period of adjustment, where hype levels out, but AI emerges from this brief downturn even more powerful. Challenges like supply chain bottlenecks aren't derailing the overall progress, Dubey insisted, pointing out that the path forward is unmistakable. For newcomers to tech jargon, think of AI as needing vast computing power—like the brains behind smartphones and data centers. Right now, the demand for these resources outpaces what's available, meaning supply lines are fully booked for the coming two to three years. As a result, companies making chips and running massive cloud systems are gaining more control over prices, which is reflected in their soaring stock values on public markets. This isn't just another tech wave; AI marks the most significant technological upheaval since the internet arrived, sparking investments in the trillions and stock market surges that leave investors breathless. But, as with any game-changer, it's brought challenges: shortages in memory chips (for a deeper dive, check out: https://www.reuters.com/world/china/ai-frenzy-is-driving-new-global-supply-chain-crisis-2025-12-03/), increased regulatory oversight (learn more here: https://www.reuters.com/sustainability/boards-policy-regulation/eu-considering-interim-measures-against-meta-eu-antitrust-chief-says-2025-12-04/), and rising concerns about how it will alter employment landscapes. As NTT DATA's chief AI officer as well, Dubey shared that his firm is already adapting its hiring approaches because AI is fundamentally changing job markets. 'It's inevitable that there will be effects on the workforce,' he said, predicting disruptions over the next five to 25 years. Yet, he reassured that NTT DATA is still expanding its teams worldwide. At the Reuters NEXT event in New York, discussions highlighted AI's potential to disrupt jobs and spur growth. May Habib, CEO of AI startup Writer Inc., recounted conversations with clients eager to cut staff. 'After sealing a deal and starting a project with a CEO, it's common to hear, 'Awesome, when can I reduce my team by 30%?' she revealed. But here's where it gets controversial: is this efficiency a win for businesses or a threat to livelihoods? Some see AI as a tool for innovation, while others fear mass layoffs. Still, reality doesn't always match the hype, according to a November survey by PwC on the global workforce. The actual everyday use of generative AI—think tools that create text or images from prompts—falls well short of what executives have been promising. Despite this, workers skilled in AI are seeing their wages jump by an average of 56%, doubling from last year's levels. PwC also pointed to a growing divide in skills training: about half of non-managerial staff have access to learning resources, compared to roughly three-quarters of top executives. (Catch live interviews by joining GMF on LSEG Messenger:) (This piece was updated to remove an outdated note.) Reported from Mumbai by Divya Chowdhury; Edited by Joe Bavier. Our Standards: Guided by the Thomson Reuters Trust Principles (opens new tab: https://www.thomsonreuters.com/en/about-us/trust-principles.html). Divya Chowdhury, a seasoned financial journalist with over 25 years in the field, covers global markets extensively and leads journalist-driven groups for cross-asset market professionals on LSEG Messenger. With a deep understanding of markets, economics, and corporate news, she frequently moderates panels and conducts interviews, both on and off camera, and has been a regular at Davos since 2019. Her strategic approach helps connect LSEG's clients on both buy and sell sides with valuable insights and introductions to key voices in business and finance worldwide. So, what do you think? Will AI's short-lived bubble lead to a utopia of innovation, or are we overlooking the risks of inequality and job loss? Do you agree with Dubey's optimistic rebound, or fear it might widen the gap between haves and have-nots? Share your thoughts, agreements, or disagreements in the comments—let's debate this together!
