"Ready adoption and fast diffusion of AI might warrant the tremendous investment flows of past years and could create revenue and profit streams quickly. We might as well be standing on the precipice of a bubble popping that will lead to sweeping valuation corrections. But digital twins stand to benefit from advancing AI either way. That said, the timeline of AI-enabled applications of digital twins might move, however."
"OpenAI is often attributed with starting the AI frenzy when releasing ChatGPT at the end of 2022. The company was valued at $29bn in 2023 and reached $500bn in October 2025, with observers wondering if the company can pull off a $1tn initial public offering soon. AI chip leader Nvidia's stock, meanwhile, multiplied by 13 between the beginning of 2023 and the end of October 2025, making it the first $5tn company ever."
"AI encompasses many different types of technologies and has many use cases, so it should be seen as an enabling technology rather than a sole application or a market per se. AI will play a major role across most application areas, but to varying degrees. Much like the way the internet shaped past decades - and will continue to shape coming decades - AI will transform industries for good in the long term."
Rapid AI adoption has triggered enormous investment and soaring company valuations since 2023, exemplified by OpenAI's valuation jump and Nvidia's stock surge. A widespread AI valuation correction remains possible, yet digital twins stand to gain from AI advances whether a bubble bursts or not. AI will enable new revenue and profit streams and accelerate digital-twin capabilities, though the timing of AI-enabled twin applications may be delayed by market corrections. AI functions as an enabling technology across industries, comparable to the internet's long-term transformation, while periodic setbacks and corrections are expected during adoption.
Read at ComputerWeekly.com
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