Markets are 'wrestling' with AI market bubble that might not pop, SailPoint CEO says
- - Markets are 'wrestling' with AI market bubble that might not pop, SailPoint CEO says
Francisco VelazquezOctober 29, 2025 at 3:57 AM
0
AI has Wall Street buzzing — but not everyone is sure whether it's a bubble or the start of an industry transformation.
"I think what everybody's wrestling with here is the speed of this thing," SailPoint (SAIL) CEO Mark McClain told Yahoo Finance's Opening Bid.
McClain added that while AI is "coming at a much faster pace" than the Industrial Revolution and the initial computing revolution, it represents a "systemic shift in the technology landscape."
"We may be overestimating the short-term impact and underestimating the long-term impact," he said, referencing a conversation with a friend.
Still, AI's true trajectory remains uncertain.
"How fast it gets adopted and how companies continue to look at the investments they're making and what it does for their business is still a little bit uncertain," McClain said.
In a recent report, HSBC head of AI and data science Mark McDonald noted that "many investors are worried about an AI bubble." But he found evidence that generative AI can boost revenue, and there's confidence that these results will generalize across sectors.
Lofty valuations across AI-related companies have some investors nervous about the potential for a short-term correction. Yet, McClain stressed that companies are taking a measured approach.
"Most large companies have pilots or projects, but there has been a little bit of a slowness in adoption," he said. "There's some risk that they don't feel completely comfortable with yet."
As an identity security vendor, SailPoint could stand to benefit from the boom, managing machine identities for clients like General Motors (GM) and Best Buy (BBY).
AI is already reshaping labor and operational models. Amazon (AMZN) is cutting 14,000 corporate roles. Chegg (CHGG) and UPS (UPS) are evaluating where automation can replace or supplement human work.
McClain compared it to historical industrial shifts, noting that technology always displaces some work while creating new opportunities elsewhere, from farming to manufacturing.
The stakes for investors are clear: AI is no longer an experimental technology. Firms that deploy it effectively can gain efficiency and potentially faster growth, while those that misjudge timing or investment strategy risk falling behind, according to McClain.
Similarly, Just Capital CEO Martin Whittaker argued on Opening Bid that companies must focus on growth beyond top-line revenue to drive long-term innovation, customer experience, and worker investment.
StockStory aims to help individual investors beat the market.
Francisco Velasquez is a Reporter at Yahoo Finance. Follow him on LinkedIn, X, and Instagram. Story tips? Email him at [email protected].
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance
Source: “AOL Money”
