AI adviser Zack Kass argues that while excitement around AI is high, the real market bubble may have been in traditional software valuations, which are now adjusting as AI changes the industry landscape. He remains optimistic about AI’s long-term potential to create value and transform society, but notes that public skepticism persists due to a lack of visible, everyday benefits so far.
Zack Kass, an AI adviser, discusses the current state of the AI and software markets, particularly in light of NVIDIA’s recent success and CEO Jensen Huang’s optimism about the rapid adoption of agentic AI. Kass notes that while the market is excited about the potential of AI, we are still in the early stages of understanding its full value. He raises the provocative idea that if intelligence becomes an unmetered resource—like water, electricity, or the internet—it could fundamentally reshape the economy and society over the next decade or two.
Kass addresses concerns about the software sector, which has seen significant declines in companies like Salesforce and Snowflake, possibly due to fears that AI will disrupt traditional software businesses. He suggests that perhaps the real bubble was in software valuations, which have been considered inflated for years, rather than in AI itself. The current correction in software stocks may simply be the market adjusting to a new reality where AI changes the value proposition of traditional software.
He also discusses the narrative that AI could lead to widespread unemployment and societal disruption. While acknowledging these concerns, Kass questions whether work is essential for happiness and suggests that if AI can provide for basic needs, society might find more fulfillment in recreation, relationships, and community. He emphasizes that the impact of AI is not purely destructive; while it may reduce the market cap of some companies, it can also create value in new areas.
Kass points out that industries such as logistics and trucking have already benefited from AI and machine learning, often long before the public became aware of technologies like ChatGPT. He laments that the positive stories of AI’s impact are often overshadowed by fears of job loss and societal harm. This lack of a positive narrative is partly due to a general mistrust of big tech and institutions, as well as the industry’s struggle to communicate the benefits of AI effectively.
Looking ahead, Kass is optimistic about the potential for AI to drive breakthroughs in fields like life sciences, materials, construction, hospitality, and entertainment. He believes that as the cost of creating software drops, new opportunities will emerge, especially in novel sciences and real-world applications. However, he acknowledges that the public remains skeptical, as the tangible benefits of AI—such as autonomous vehicles or cures for diseases—have yet to materialize, leaving many to wonder what value AI truly brings to their lives right now.