Ringing the Bell The head of stock research at Goldman Sachs, Jim Covello, believes that the burgeoning AI industry could be in for a rude awakening. As the New York Times reports, Covello closely followed the crash of the dot-com bubble months after he started working at Goldman, watching as thousands of workers were laid off. In June, he issued a stark warning in a widely reported research paper, arguing that the billions of dollars being poured into AI companies may not see a sufficient return and that the current crop of AI tools simply aren’t good enough to bring about a worthwhile boost in productivity. “Despite its expensive price tag, the technology is nowhere near where it needs to be in order to be useful,” Covello wrote in the report. “Overbuilding things the world doesn’t have use for, or is not ready for, typically ends badly.” The paper marked a significant turning point, with a number of venture capitalists starting to become wary of an emerging bubble that could be set to burst. In his paper, Covello predicted that companies will eventually cut their spending once they realize that expensive AI tools significantly cut into their profits. And he’s not ruling out that a dot-com-style crash could be around the corner. “When you have a view that’s sort of out on a limb, you live in this kind of constant state of paranoia that AI is going to be as big as everybody thinks it is,” he told the…Top Goldman Sachs Stock Researcher Warns AI Bubble May Be About to Explode