Former Cisco CEO John Chambers Warns AI Market Surge Mirrors Dot-Com Bubble, Predicts Faster Job Displacement, Market Volatility

Benzinga

Former Cisco CEO John Chambers warned that today’s AI surge resembles the dot-com bubble, with growth advancing five times faster but carrying similar risks. He predicts massive job losses and the collapse of unprepared companies as business cycles shorten dramatically. While Chambers sees an AI “train wreck” ahead, others like Palantir’s Shyam Sankar and Kevin O’Leary believe it will boost productivity instead.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02John Chambers, former Cisco CEO who led the company through the dot-com bubble,

00:07warned of an AI boom that mirrors the internet frenzy that once sent Cisco stock

00:10soaring 80% before its crash. Chambers told the Associated Press that AI is advancing five times

00:16faster than the internet era, with startups now creating and launching products in weeks instead

00:20of years. Chambers warned that AI will eliminate jobs faster than they can be replaced, causing

00:24major workforce disruption, compared to that half of the Fortune 500 companies and many

00:29unprepared executives could disappear as business cycles shrink to a single year. Chambers warned

00:34that excessive optimism around AI signals a coming bubble. The company is failing to turn

00:38investments into lasting advantages, headed for a trade wreck. Labor data revisions show

00:42911,000 fewer jobs through March. Goldman Sachs estimates AI could replace up to 7% of U.S.

00:49jobs in the next decade. Talenters Shryam Sankar and investor Kevin O'Leary argue AI will lift

00:54productivity rather than employment losses.

00:56For all things money, visit Benzinga.com.

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