EDITORIAL: What is ahead for the AI industryBenefiting from the continued rise in demand for artificial intelligence (AI) and other emerging technology applications, Taiwan’s tech-driven exports rose significantly, and private investment further increased this year, prompting the central bank to revise upward its economic growth forecasts last week. In addition, the central bank said it has paid attention to the market’s recent concerns about an AI bubble after AI stocks corrected meaningfully from their highs, as the market began reassessing whether AI firms’ massive capital expenditures had sufficient end-demand support. The big question is whether the AI industry would face a bubble bursting in the near term, similar to the dotcom bubble in 2000. That explains why the market remains concerned about whether the massive capital expenditures of cloud service providers and other AI-focused firms have become imbalanced. However, as the central bank pointed out, the process of transforming new technologies into substantial productivity inevitably involves a transitional period of adjustment and adaptation, which is an unavoidable path for industrial innovation and upgrading.
