Google CEO Warns of AI Bubble Risks While Urging Caution on AI Trust

Google boss Sundar Pichai warns 'no company immune' if AI bubble bursts

Every company would be affected if the AI bubble were to burst, the head of Google's parent firm Alphabet has told the BBC. Speaking exclusively to BBC News, Sundar Pichai said while the growth of artificial intelligence (AI) investment had been an "extraordinary moment", there was some "irrationality" in the current AI boom. It comes amid fears in Silicon Valley and beyond of a bubble as the value of AI tech companies has soared in recent months and companies spend big on the burgeoning industry. Asked whether Google would be immune to the impact of the AI bubble bursting, Mr Pichai said the tech giant could weather that potential storm, but also issued a warning. "I think no company is going to be immune, including us," he said.

Don't blindly trust what AI tells you, Google boss tells BBC

People should not "blindly trust" everything AI tools tell them, the boss of Google's parent company Alphabet told the BBC. In an exclusive interview, chief executive Sundar Pichai said that AI models are "prone to errors" and urged people to use them alongside other tools. Mr Pichai said it highlighted the importance of having a rich information ecosystem, rather than solely relying on AI technology. "This is why people also use Google search, and we have other products that are more grounded in providing accurate information." While AI tools were helpful "if you want to creatively write something", Mr Pichai said people "have to learn to use these tools for what they're good at, and not blindly trust everything they say". He told the BBC: "We take pride in the amount of work we put in to give us as accurate information as possible, but the current state-of-the-art AI technology is prone to some errors."

Google CEO: "No company is going to be immune" if AI bubble bursts

Why it matters: Investors are increasingly nervous about the health of the AI frenzy, and the sustainability of the trillions in pledged spending in the coming years. What they're saying: If the bubble bursts, "I think no company is going to be immune, including us," Pichai said in what was billed as an exclusive interview. * "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound," he told the British broadcaster. "I expect AI to be the same." * "So I think it's both rational and there are elements of irrationality through a moment like this." By the numbers: Shares in Google parent Alphabet closed at an all-time high Monday, having risen 51% this year alone. * Despite Pichai's warning, the stock was up another 0.5% in premarket trading early Tuesday. * The company is benefitting from surging demand for AI infrastructure, as well as growing consumer adoption of its own platform Gemini. The bottom line: Investors continue to aggressively buy stocks linked to the AI boom -- but they're also asking more questions about how long it can last. Go deeper: Why the AI economy might not be 1990s redux

Don't blindly trust everything AI tools say, warns Alphabet boss

Sundar Pichai says artificial intelligence models are 'prone to some errors' and warns of impact if AI bubble bursts The head of Google's parent company has said people should not "blindly trust" everything artificial intelligence tools tell them. In an interview with the BBC, Sundar Pichai, the chief executive of Alphabet, said AI models were "prone to errors" and urged people to use them alongside other tools. In the same interview, Pichai warned that no company would be immune if the AI bubble bursts. Since May, Google has introduced an "AI Mode" into its search using its Gemini chatbot, which aims to give users the experience of talking to an expert. Google's consumer AI model, Gemini 3.0, is expected to launch imminently but the company has yet to name a date. Pichai said that while AI tools were helpful "if you want to creatively write something", people "have to learn to use these tools for what they're good at, and not blindly trust everything they say". He told the BBC: "We take pride in the amount of work we put in to give us as accurate information as possible, but the current state-of-the-art AI technology is prone to some errors." There are concerns in Silicon Valley and beyond of a bubble as the value of AI tech companies has increased recently and companies are spending large amounts on the booming industry. Asked whether Google would be immune to the impact of an AI bubble bursting, Pichai said: "I think no company is going to be immune, including us." He added: "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound. I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this." Last month the head of America's largest bank said the chance of the US stock market crashing was far greater than many financiers believed. Jamie Dimon, the chair and chief executive of the Wall Street bank JPMorgan Chase, said he was "far more worried than others" about a serious market correction, which he predicted could come in the next six months to two years. Dimon said there were a "lot of things out there" creating an atmosphere of uncertainty, pointing to risks including the geopolitical environment, fiscal spending and the remilitarisation of the world.

Google CEO's warning about the AI bubble bursting: 'No company is going to be immune, including us'

With one of the world's top bankers, ex-Intel CEO Pat Gelsinger, and even OpenAI chief Sam Altman suggesting AI is in a bubble, Google's CEO has chimed in with thoughts of his own. When asked how the AI bubble bursting would affect Google Pichai tells the BBC the company would survive, but also that "no company is going to be immune, including us." In an interview with the British news organisation Google's Sundar Pichai talks at length about this technology as we enter "clearly the era of AI." Pichai has been the CEO of Google for over a decade now, and as such, he is one of the most influential voices in favour of the rise of generative AI tools. Google, alongside all its competitors, is committing a lot of time, money, and effort into the growth of AI. Pichai says, "AI is dramatically increasing demand for energy", adding that "maybe four years ago, Google was spending less than 30 billion dollars per year. This year, that number is going to be over 90 billion dollars." With exponential growth comes the potential of that growth stopping suddenly, and the industries built around it collapsing in response. Nvidia has become a company worth over $5 trillion, and that's partially due to the rise of AI and the costs of capable hardware. This knock-on effect has pumped up the worth of major AI companies, such as OpenAI, and would explain the AI commitments made by Google, Microsoft, Meta, and more. "No one company should own a technology as powerful as AI," says Pichai. "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound or did it drive a lot of impacts. It fundamentally changed how we work digitally, as a society. I expect AI to be the same." But even successful industry bubbles can pop. For instance, the infamous dot-com bubble of the late '90s could be attributed to a broad trend of overvaluations of many internet companies and market saturation (among other things), but that doesn't mean that the invention of the internet isn't influential on the world around us today. Pichai also talks about the role of generative AI tools in the wider world going forward. 'Agentic' is the current buzzword around AI, and the notion of one AI that can autonomously complete assignments with little oversight is certainly intriguing. "Down the line, that means there are moments it can help you make a decision... ' should I invest in this stock?'... or 'my doctor is recommending a treatment. How should I think about the pros and cons of that treatment?" But Pichai doesn't envision AI as a one-stop solution for all queries. He urges people not to "blindly trust" AI as it is currently prone to errors. AI is known to have hallucinations, where it effectively makes things up. If you ask a chatbot a question it doesn't have an answer for, or it has scraped its answer from inaccurate sources, it can feed you misinformation unintentionally. As we trust these tools more, the effects of that misinformation can become more pronounced. "This is why people also use Google search, and we have other products that are more grounded in providing accurate information." When asked, "Could an AI agent do your job at some point?", Pichai says, "I think what a CEO does is maybe one of the easier things for an AI to do one day." So, at least if AI does take all our jobs, we'll all be job hunting together. Or not, I suppose, if Pichai's estimated net worth is accurate.

Relying on AI too much? Google's boss Sundar Pichai has a warning about the tech and the bubble it is creating

The Google chief's comments come at a time when AI adoption is reaching new highs in workplaces, schools and digital platforms. His caution highlights a growing industry consensus: AI is powerful, but still imperfect -- and users must stay alert even as companies race ahead in the global AI boom. At a moment when AI-generated answers are slipping into everyday conversations, from office chats to school homework and even family WhatsApp groups, Google CEO Sundar Pichai has stepped in with a gentle reminder: do not hand over your judgement to machines just yet. Speaking to the BBC, Pichai warned that today's highly popular AI tools, despite their growing influence, are still "prone to errors" and must not be "blindly trusted". His caution comes at a time when global excitement around AI is soaring, investment is at a historic peak, and tech companies are racing to build the next big breakthrough. But Pichai says the hype comes with risks. Even Google, he admits, will not be immune if the AI investment bubble suddenly bursts, a moment he believes no firm can completely escape. Pichai, who leads Alphabet, said it is important for users to balance AI-generated answers with other trusted information sources. He stressed that a bigger and stronger information ecosystem is necessary for accurate public understanding. "This is why people also use Google search, and we have other products that are more grounded in providing accurate information," Pichai told the BBC. Also Read: Delhi's 'toxic' air hits offices: Employee requests WFH for severe headache, and what the manager said is now viral He added that AI could be useful "if you want to creatively write something", but reminded users that they "have to learn to use these tools for what they're good at, and not blindly trust everything they say". In May, Google rolled out an "AI Mode" inside its search product using its Gemini chatbot, designed to offer an experience similar to "talking to an expert". But Pichai admitted the technology is far from perfect. "We take pride in the amount of work we put in to give us as accurate information as possible, but the current state-of-the-art AI technology is prone to some errors," he said. Pichai also addressed concerns about an AI investment bubble, saying the current phase is a mix of rational excitement and "irrationality". He said the momentum in the industry mirrors earlier tech booms. "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound. Also Read: Rs 7.4 lakh to Rs 60 lakh: Techie's journey from tier 3 college to FAANG offer inspires the internet "I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this," he said. Asked if Google would be safe in case of an AI market collapse, Pichai replied: "I think no company is going to be immune, including us." Despite global uncertainties, Google is expanding its investments. The company has committed 5 billion pounds to new infrastructure and research in the UK over the next two years. "We are committed to investing in the UK in a pretty significant way," said Pichai. (Inputs from PTI) (You can now subscribe to our Economic Times WhatsApp channel)