Listen "AI Supercycle vs. Bubble: The $75% Growth"
Episode Synopsis
Enjoying the show? Support our mission and help keep the content coming by buying us a coffee: https://buymeacoffee.com/deepdivepodcastThe biggest question defining 2025 is whether we are living through a genuine technological revolution or merely a giant speculative frenzy. This episode cuts through the hype to unpack the reality of the two seismic shifts set to redefine business: the AI Gold Rush and the quiet revolution of the Decentralized Internet (Web3). We examine what these trends truly mean for organizations, investment, and your career.At the heart of the "boom or bubble" debate is Artificial Intelligence. The conversation has shifted from "wow, this is cool" to "how do we actually use this?" Experts predict that 2025 will be the year companies stop merely experimenting and start baking AI into the core of their business strategy to create real, lasting advantages. This strategic push, however, is happening amidst intense financial debate. On one side, industry leaders are calling it the start of a decade-long AI supercycle, while seasoned veterans are warning of an industrial bubble, predicting that much of the money thrown at AI will never pay off. The stakes are massive: since late 2022, a mind-blowing 75% of the S&P 500's growth has come from just a handful of AI-related stocks—the entire market's health is riding on this single trend. Smart companies are navigating this by focusing on high-quality data, measuring real business results (not just tech for tech's sake), and tackling the biggest roadblock: a massive skills gap where industry experts lack the necessary data science chops.While AI dominates headlines, another huge shift is quietly gaining momentum: the rise of Web3. Built on technologies like blockchain, Web3 is a vision for a new Internet that takes power away from a few giant tech companies and hands it back to the users. The current Web 2.0 is centralized, controlled by massive corporations where our data is the product. Web3 seeks to flip the script: decentralized, user-controlled, and transparent. This isn't abstract; it's manifesting in decentralized autonomous organizations (DAOs) for peer-to-peer finance, see-through supply chains, and social media that resists censorship—all united by their mission to cut out the powerful middleman. However, this freedom comes with serious risks: in 2023 alone, almost $2 billion was lost to hacks and scams in this space. It remains the Wild West and is not for the faint of heart.These two trends are pouring gasoline on the fire of the startup world. After slow years, 2025 is projected to see a hopeful comeback with a big jump in mergers, acquisitions, and IPOs. New companies are focusing on several key areas: hyper-personalization via AI, a huge push into Climate Tech, and the explosion of vertical SaaS (specialized, custom software built from the ground up for niche industries like farming or law firms). One vertical is booming thanks to global tensions: Defense Tech, which saw venture investment hit a record-shattering $3 billion in 2024, signaling the end of Silicon Valley's reluctance toward military contracts.The bottom line for every company is this: business leaders are demanding real, tangible results. The days of buying tech just because it's new and shiny are over; in 2025, you must prove the return on your investment. To achieve this, companies are mobilizing specialized data teams (architects, engineers, analysts, scientists) and, critically, revolutionizing hiring. Recognizing that a traditional college degree doesn't guarantee the necessary, specific skills, companies are shifting to skills-based hiring, focusing on what you can actually do.We circle back to the first question: Are we in a tech boom or a tech bubble? The answer, it seems, is yes—a little bit of both. The technology itself is becoming undeniably powerful, but the factor that will truly define 2025 isn't just what the tech can do, it's how we as people choose to manage it.
ZARZA We are Zarza, the prestigious firm behind major projects in information technology.