In classical economic theory, one pre-condition for efficient market allocation of resources is accurate information providing a basis for rational levels of in

In classical economic theory, one pre-condition for efficient market allocation of resources is accurate information providing a basis for rational levels of investment. If AI is subject to crazes, with investors as a whole drastically overestimating its potential, then it's certainly possible to over-allocate capital (human and otherwise) to it in the hopes of a payoff. Consider the Dutch tulip mania of the 1630s. Imagine if it had lasted a bit longer, long enough for promising scientists and scholars of every type to be trained solely to optimize the growth of tulips. This allocation of capital would provide a benefit to tulip investors for as long as the craze lasted, but would prove to be a detriment to society once the craze ended. https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania