Why is everyone talking about an AI bubble?
Bubbles burst, and creators, filmmakers, and content teams need to know which elements of AI are here to stay and what will disappear.
There’s no escaping the AI boom. Every aspect of the creative industry is impacted by it, and with creators being flooded with an influx of new tools, the message is if you don’t keep up, you’ll be left behind. But is there truth in that? And, more importantly, how can we approach AI practically, responsibly, and sustainably?
AI is redefining the tech landscape, winning millions in funding rounds and transforming every industry. In 2024, a survey by the US Chamber of Commerce revealed that nearly all small businesses (98%) are using AI-enabled tools.
According to Fortune, Legal AI company Norm AI raised $50 million from Blackstone in November, shortly after raising $48 million in March.
Meanwhile, in the coding industry, Lovable raised $15 million in February, followed by $200 million in July and a $1.8 billion valuation.
All of this combined is changing how we all do business. In 2025, UPS cut 48,000 jobs, Amazon eliminated 14,000 jobs, and Verizon announced plans to lay off 15,000 employees. And it’s hitting the culture sector hard. Research by NL Times revealed that a fifth of freelance artists have lost income due to AI.
So, understandably, this shift is a source of apprehension as well as excitement. In this article, we’ll explore how the so-called ‘AI bubble’ compares to other bubbles in tech. We’ll dig into what elements of AI are here to stay, how creators can keep up with new tech without burning out, and what to look out for when navigating new tools.
What do we mean by “AI bubble”?
A bubble is what happens when hype overtakes reality and prices or expectations get ahead of what can last sustainably. Past bubbles within tech include 3D printing, NFTs, cryptocurrencies, and the dot-com boom. All these examples followed the same arc — big ideas, massive investment, unrealistic expectations — followed by a shift towards more realistic infrastructure.
When people talk about an AI bubble, they usually point to familiar red flags such as inflated valuations, too many look-alike tools, promises that feel too good to be true, and fear-fuelled talk about jobs and creativity disappearing. With AI, we’re very much in the midst of all of this, so let’s take a closer look at some of the telltale signs of a tech bubble.
Overvaluation: AI companies are sometimes priced on future promise rather than proven, sustainable returns.
Tool overcrowding: A flood of similar AI tools creates noise that outpaces clear, differentiated use cases.
Unrealistic expectations: AI is often framed as an instant solution, obscuring its limits and dependencies.
Fear-driven narratives: Talk of job loss and creative replacement increases anxiety, often faster than evidence supports.
AI as a category: AI has become a representation of a new era: a broad, long-term technological shift, not just one product, company, or trend.
Individual companies, tools, or models: Be aware that specific products may be overhyped, fragile, or short-lived despite the fact that AI is likely here to stay.
Why is the noise especially loud right now?
Despite all the speculation, growth at speed doesn’t necessarily mean an industry is unstable. However, it does increase the amount of noise we need to cut through, which is why it feels as though there’s a new, life-saving AI tool for creators every day.
Don’t get swept up in hype around new tools. Instead, take your time deciding where to invest your time and money. The tools that work best will rise to the top and stay for good, so you’ll know about them sooner or later.
Here’s why AI is so loud for creators at the moment:
Increase in multimodal models (video, image, audio)
AI isn’t just text-based anymore. Now, many models handle multiple types of content, making the tech feel much more powerful and versatile, but also more difficult to navigate.
Consumer-facing tools are making AI feel “overnight”
Apps and plug-ins are bringing AI directly to everyday users, giving the impression that these changes are happening instantly, even though the underlying research has been in the works for many years.
Media incentives to overstate disruption
It’s called rage-baiting: headlines often exaggerate AI’s impact, highlighting dramatic stories of job replacement or creative breakthroughs to attract clicks, which can distort reality.
Real breakthroughs are happening alongside exaggerated claims
Despite hype and overblown narratives, genuine innovations are emerging that do have lasting value. So the challenge is figuring out what elements of AI have substance and are here to stay.
Signs this isn’t just an AI bubble
There are also plenty of tell-tale signs that we aren’t experiencing a bubble, and here are some examples:
Big infrastructure investments: Companies are pouring serious money into data centers and long-term AI research. According to Barron’s, AI infrastructure is driving $750 billion in AI‑related data centre investment, indicating solid, real foundations.
AI in daily work: From creative studios to start-ups to heritage brands, AI tools are part of our day-to-day workflows, which shows the tech is sticking. A 2025 study by allaboutai.com found 78% of global organizations now use AI in at least one business function.
Usage keeps growing: Unlike past bubbles, which burst because people didn’t use the product anymore, AI usage is increasing across every industry, suggesting this isn’t just a trend.
What to look out for
That’s not to say we shouldn’t pay some attention. There are still some patterns that mirror past tech bubbles:
Overpromising capabilities: Many AI tools sound magical but often fall short in practice, and as creators, it won’t take long for you to find that out.
Tools are developing faster than users can learn: New apps pop up daily, making it hard to keep up. Don’t get bogged down by new tech. Continue to experiment, have fun, find the tools that work for you, and trust that the best will rise to the top.
Ethical, legal, and licensing concerns: Ownership and copyright of AI-generated work are still murky and impacting the creative industries, so focus on tools that have clear legislation.
Some AI startups will fail — and that’s normal: Not every company survives the hype, and that’s to be expected in any emerging market.
What does this mean for creators?
Keeping up with all the new AI tools can feel draining, and although it’s certainly useful to be an early adopter, it’s also important to stay focused and resist the hype. There’s no rush, and it’s best to stay focused on the tools that work for you rather than follow the next big thing. So here’s what matters when choosing an AI tool:
Flexibility: Choose tools that can adapt to different tasks or styles, so you can use them across a range of platforms and mediums.
Output quality: A flashy tool isn’t helpful if it produces bad results. Reliability matters more than hype, and as soon as it falls short, drop it.
Creative control: Make sure you can guide the AI tools that force specific defaults or styles that don’t allow your creativity to flourish.
Transparent licensing: Figure out who owns the output and what you’re allowed to do with it, so you don’t run into legal headaches with your creative work.
Think of AI as a collaborator and part of your team, not a replacement for your creativity. AI can’t replace taste, intent, or storytelling, so choose tools that amplify what you bring to the table.
AI models in real creative workflows
If used in the right way, AI can be an empowering tool for creators, saving time, money, and giving you more space to be creative.
Artlist has designed all their latest AI tools with creators in mind to slice through the noise and centralise the best tools. You know, the ones you actually want to use every day and that make life easier.
Artlist’s advanced AI tools are built for creators and designed to give you choice and room to experiment. Despite what the tech firms might say, there’s no pressure to commit to a single tool or model. The real advantage of AI comes from combining tools to enhance your workflow in multiple ways, whether that’s storyboarding, idea generation, editing, or refining the way you create content.
Prompt: “Create a scene with badger, hedgehogs, and rabbits grazing by a river, it’s dawn, the sun is on the horizon, and there’s bright flowers blooming as if it is spring.”
Different models solve different creative problems: Sora 2 and Kling are great for video generation, while Nano Banana shines for image creation. All of Artlist’s AI tools are designed to boost, enhance, and streamline the creative process. You can generate visuals from text prompts, rework images, or turn descriptions into short videos using models like Veo 3.1.
On the audio side, studio-quality voiceovers and voice effects let you add narration and stylistic touches, while AI-powered search makes finding music and footage effortless. AI Artboards organise ideas, and the Premiere Pro assistant edits shortcuts, giving you a toolkit that encourages experimentation without losing any of the personal touches.
How to use AI without chasing hype
AI works best as a creative partner rather than a creative replacement. So how can you find the right tools without following the crowd? Here are some questions you can ask yourself when searching for the right tool:
- Does this save time or improve quality?
- Can I control the output?
- Is the licensing clear?
- Does it fit my workflow or disrupt it?
- Does this tool complement my own skills rather than replace them?
- Can I experiment freely without being locked into one style or format?
- Is the tool reliable and consistent in its outputs?
- How transparent is it about data sources and training methods?
- Will it scale with larger projects or higher volumes of work?
- Does it genuinely solve a problem I have, or is it just shiny and new?
If you’re working in a team, focus on introducing a handful of reliable AI tools that everyone can learn and use efficiently, rather than chasing every new release.
Solo creators: pick tools that truly fit your workflow. Learn them well, and stick with them long enough to see results. If you constantly switch between apps, you might burn out and create inconsistent content.
So — are we in an AI bubble?
The short answer: no.
The long answer: certain parts of the market may be overhyped or inflated, but AI itself isn’t going anywhere. The real bubble is which tools are here to stay. Some deliver trust, usability, and genuine value for creators; others just add to the noise. The tools that actually help artists work smarter, experiment more freely, and produce better content are the ones that will stick around long term.
What truly matters
What truly matters isn’t whether the AI bubble will pop, but how you use it. We encourage our community of creators to harness it responsibly, creatively, and on your own terms. Those who stay curious, selective, and grounded will have an edge over others because they’ll stay focused despite all the distractions flying around. So start experimenting today, focus on what adds real value, and let AI amplify your vision. For the latest AI tools designed for creators, head over to Artlist.
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