Pre -cisco system CEO John Chambers learned everything about the volatile high and climb of technology as an experienced of the early boom of the Internet during the late 1990s and with the slowdown after the frenzy.
And now he is looking at the potential signs of the cycle to be repeated with another transformative technique, as the stock market with another transformative technology has been brought to a new level with another transformative technique as investment and enthusiasm about artificial intelligence.
The Chambers ride the meteorite in their early days in their early days, which had a market price of about $ 15 billion in 1995, when networking equipment suddenly became a component for internet buildup. The demand for fever converted the firm into the world’s most valuable company – priced at $ 550 billion in March 2000 – before the investment bubble burst. Cisco shares were priced at more than 80% due to the accident, which Chambers still remember as the worst of their career.
Cisco bounces back to providing consistent financial growth to help the chambers install silicon ValleyThe leader of the most respected leaders before leaving the post as CEO in 2015, but the company’s share price never reached Shikhar, which reached a fourth century ago.
While the remaining of Emeritus, the chairman of Cisco, the chambers are now fascinated by AI’s transformational powers as it was once by the Internet Revolution. Only this time he is advising CEO As a venture capitalist, AI is investing himself instead of running a company in startups. The 76 -year -old Chambers discussed the promises and crises of the AI Boom with the recently associated press. The interview is edited for clarity.
Question: Does the current AI mania remind you of the 1990s internet boom?
A: Absolutely. There are many similarities but there are some great differences. The AI is growing five times at the speed and will produce three times more of the results of the Internet era. In the Internet era, a startup will develop products for two years and then in year three, they will take it to the market. Today, AI startups develop products in a month and sometimes a week, and then they bring it to the market in one or two quarters.
In the Internet era, there was a really irrational extreme excitement. In this AI, there is a lot of tremendous optimism that indicates future bubbles for some companies. Is the train going to be debris? Yes, for those who are not able to translate technology into a permanent competitive advantage, how are you going to generate revenue after all the money present in it?
Question: Do you think AI is going to end a lot of jobs?
A: This happened with the Internet. This time the problem is that if I am right about AI, then we are growing five times at the pace of internet, we are going to destroy jobs rapidly as we can change them. Will we be able to change them over time? Yes, but it is going to be drought while we have to re -educate many people.
Question: Do you worry?
A: Big Time!
Question: What do we need to do to be ready for this turmoil?
A: We need to change education. Entry-level jobs, white and blue collar are going to disappear rapidly. We are creating more productivity, but we also have to produce more jobs. If companies start making more money, they are either going to increase dividends or invest in new areas. Hopefully, majority will invest in new areas to create new jobs.
You will see that successful companies dramatically expand and grow, but you probably disappear 50% of Fortune 500 companies and 50% of Fortune 500 disappear. They would not have the skill to accommodate this new innovation economy operated by AI as they were trained to Silos, they were trained to move at the speed of a five -year cycle contrary to the 12 -month cycle.
Question: Do you think it is one of the most indefinite times you have ever seen?
A: This is the most indefinite time on global basis, anytime. I will argue that this is new to normal. With the speed at which the market is running, you should be able to strengthen yourself, which most CEOs and business leaders do not know how to do, especially with AI.
Question: What is your idea about how the President is working with Donald Trump During your second term in the office?
A: Let’s be realistic. Silicon Valley became correct, there should be no doubt. He did it for economic reasons. And practicality, he did it for his shareholders, but the regulation was also getting out of control. They were not able to grow and China Clearly beating us.
Question: How worried about China?
A: I think China has full intention of winning at America’s expense. In China, there are no rules, there is no intellectual property, there is no problem about misuse of power. They intend to blow the past military, financially and in every other way. I do not see him as a partner, I see him as a serious contestant on all fronts and someone who does not trust. I think over time people are going to identify that it is in the best interest of America and it is with us in the best interest of China. So go out 10 years, and this is most likely the result. But I think the next five years are really bumpy and dangerous. We should not have any illusion that they intend to crush us.