Former Meta Exec Warns Big AI Correction Could Be Coming

Nick Clegg, former Meta executive and current VP at Microsoft, says a major AI market correction is “pretty high” as hype and speculation swell. He warns investors to be wary of overvalued AI bets.

Clegg argues that many AI projects have sky-high expectations without proven business models. He says these gaps can lead to a sharp pullback when reality sets in.

He also cautions that governments may intervene. More regulation, privacy laws, or limits on data could restrain how fast AI expands into sectors like healthcare, finance, and social media.

Still, Clegg believes AI’s long-term promise remains intact. He sees continued growth in applications like customer service, content creation, and enterprise tools. But he emphasizes that some of the current AI “moonshots” might not survive the market’s reset.

In short: Clegg is sounding a realistic wake-up call. While AI has transformative potential, he says the road ahead will include corrections—and not every startup will make it through unscathed.