E The Great Artificial Intelligence Bubble And Scam

The Great Artificial Intelligence bubble and Scam has made inroads into all facets of American life. The scam of the self checker at your local grocery store is a prime example, and certainly the same arguments can be made about self driving cars, and other artificial intelligence. These all seem to be an attempt to sell unproven and overhyped technology to business and individuals to make money, whether the general concept itself is valid or not! 

Before we look into the economic ramifications of this scam, turned bubble, we can review some weaknesses already made evident.

Because of Amazon's (AMZN) interest in artificial intelligence and Bezos's purchase of Whole Foods (WFM), we should check out the grocery scene more carefully. We know from personal experience that if you have produce, checking out become complicated and time consuming. If you press the wrong button the little machine freezes up and forces you to raise your hand for the kiosk monitor to come and help you. 

It has gotten so bad that Albertsons, a large chain in the west, has taken out all its self checking kiosks with the exception of some high traffic stores. In my area of residence in Nevada, this does not appear to have hurt Albertsons at all. It is one of the fastest growing chains. 

Whole Foods has succeeded in the past by having personal customer service. If Amazon stops this and introduces kiosks, it could radically destroy business for its stores. 

Whole Foods is introducing 365 stores with kiosks, and a large percentage of the population simply will not shop at these stores. They have little social interaction and few products. 

The Amazon attack on mainstreet is likely a significant tactical error, and will ultimately turn many people against technology. 

Here is a dire warning from Steve Kaufman, a long time follower of the store design industry:

Whole Foods shopper doesn’t go there for Bounty and Kleenex. She’s looking for 100-percent organic, recycled, hypoallergenic.
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Disclaimer: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice. The ...

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Carol W 3 years ago Contributor's comment

We are not even close to TRUE AI- the media and markets are using the term incorrectly.

BreakingBad News 3 years ago Member's comment

I agree, but we're getting closer every day!

Gary Anderson 2 years ago Author's comment

I have to object, Breaking Bad. Carol has a handle on the misuse of AI that comes with false hype.