Sundar Pichai, the head of Google’s parent company Alphabet, has warned that the bursting of the artificial intelligence (AI) bubble could have far-reaching consequences for all companies, including his own. In an interview with the BBC, Pichai acknowledged that there is “irrationality” behind the current boom in AI investment, which has driven a tech rally this year. However, fears of an AI bubble burst have led to a selloff, resulting in global stock markets tumbling in recent months.

Pichai emphasized that no company would be immune to the impact of an AI bubble burst, stating, “I think no company is going to be immune, including us.” The interview also touched on long-standing concerns surrounding AI, including its energy requirements, climate targets, accuracy, and the impact on jobs. According to the International Energy Agency, AI accounted for 1.5 percent of global electricity consumption last year, with its global computing footprint expected to reach 200 gigawatts by 2030.

This significant energy demand has raised concerns about the need for new energy sources and infrastructure strengthening. Pichai noted that the energy needs of Alphabet’s AI operations would delay the company’s climate goals, but reaffirmed its commitment to achieving carbon neutrality by 2030. The tech boss also acknowledged that AI would have a profound impact on the workforce, potentially replacing certain jobs, including CEOs, and causing “societal disruptions.”

However, Pichai emphasized that individuals who adapt to AI and learn to utilize its tools would be better equipped to succeed in their professions. Alphabet’s recent quarterly revenue of $100 billion, reported in October, was largely driven by its ability to capitalize on the AI boom. The company has increased spending to meet demand for AI infrastructure and has rolled out AI features in Google Search and its Gemini AI models.

As the AI landscape continues to evolve, Pichai’s warnings serve as a reminder of the potential risks and consequences associated with the rapid growth of AI investment. With the tech industry poised for continued expansion, it remains to be seen how companies will navigate the challenges and opportunities presented by AI. The significance of Pichai’s statements lies in their emphasis on the need for adaptation and responsible development of AI, as the technology continues to shape the future of work and the environment.