Revenge of the AI bubble

The AI bubble debate has passed through three phases: suspicion when capital flowed into AI without proven automation, mania when Claude Code and autonomous agents drove rapid AI adoption, and reckoning when companies found AI excels with precision but fails as a universal productivity tool. The shift highlights risks of scaling AI without clear use cases. Builders must define narrow, high-impact applications to avoid waste. The cycle shows market overreaction to AI hype.