Ruben Hassid · 5 min read · Product Strategy
Bubble-Burst.
Read the original on ruben.substack.com →
The article argues that AI is not a bubble by examining four key lenses: adoption, monetization, intelligence, and affordability. It highlights that AI has grown from 0% to 50% business adoption in four years, spending has quadrupled, and the same level of AI capability has become 79x cheaper in just one year. The author projects this cost reduction trend could make AI tasks nearly free within a decade, fundamentally disrupting knowledge work professions like accounting.
Key Takeaways
- AI adoption has surged from 0% to over 50% of businesses in four years, with AI spending quadrupling in just 12 months — strong indicators this is not a speculative bubble
- AI capability has improved while becoming 79x cheaper in a single year, a rate of cost reduction unprecedented in any other technology
- If the 79x annual cost reduction continues, a task that costs $1M today could cost just 3 cents by 2030, making AI effectively 'too cheap to meter'
- Professions like accounting are already being outperformed by AI models as of 2026, signaling rapid displacement of knowledge work roles
- Confusing rising subscription costs with overall AI pricing trends is a mistake — users pay more because they're using smarter, newer models more frequently, not because AI is getting more expensive
Excerpt
You are making two big mistakes. You think AI is a bubble. You overestimate how hard it is to master AI. I am fixing these two in one article. Share Before diving in, take a second to share this with your colleagues to finally answer: Is AI a bubble? 1. It is not a bubble. Everything feels fast. Too fast. So it must be a bubble. First, we did not wait for AI to happen to go too fast. The world feels faster & crazier, every year. It won’t stop. For centuries, a person could live 250 years after their…