NTT DATA and SK Chiefs Weigh In: Is the AI Boom a Bubble? Leaders See Strong Rebound Amidst Job and Stock Volatility

Senior leaders from NTT DATA and South Korea’s SK Group offered measured views this week on how long the current enthusiasm for artificial intelligence may last. Both companies expect some cooling in market valuations, but they also emphasized that AI will remain a dominant force shaping technology and business for many years.

NTT DATA Inc. CEO Abhijit Dubey predicted that any downturn in AI-related stocks is likely to be brief, describing AI as a powerful long-term trend that will continue to expand once short-term excesses subside. He expects the market to adjust over the coming year but believes the sector will emerge stronger as businesses begin implementing AI systems at a pace that aligns with today’s heavy infrastructure investment. Dubey added that demand for computing resources is already outstripping available capacity, effectively locking in supply chains for the next several years and strengthening the pricing position of chip manufacturers and major cloud providers—an effect reflected in their elevated valuations.

SK Group Chairman Chey Tae-won, whose conglomerate includes memory-chip giant SK Hynix, drew a similar distinction between the fundamental health of the AI industry and the rapid escalation of stock prices. He noted that while he does not view the underlying AI sector as being in bubble territory, sharp increases in share prices naturally invite a period of correction if valuations move too far ahead of real performance. SK Hynix, which supplies advanced memory components for cutting-edge AI hardware, has seen its stock price more than triple over the past year. The firm reported record profits in October and has already committed next year’s entire chip output, anticipating a sustained boom cycle. Chey characterized the recent surge in valuations as typical behaviour in fast-growing technology markets.

Although AI is attracting unprecedented global investment, it is also prompting questions about regulation and the future of employment. NTT DATA has begun re-evaluating its hiring approach as AI reshapes labor needs, with Dubey projecting potential workforce disruptions over the next five to 25 years even as the company continues to recruit. May Habib, CEO of AI company Writer Inc., noted that many clients are explicitly focusing on slowing workforce expansion, with some making aggressive inquiries about reducing staff. Despite executive enthusiasm, day-to-day use of generative AI remains far below the hype, according to a PwC survey published in November. The survey also found that employees with AI capabilities now receive an average wage premium of 56 percent—double the previous year’s figure—yet significant gaps in skills training remain, particularly among employees outside leadership roles.