Core Viewpoint - The article discusses the significant impact of automated bots on internet traffic and the potential distortion of key metrics that drive technology company valuations, suggesting that the current AI boom may be built on inflated data driven by bots [2][3][4]. Group 1: Impact of Bots on Internet Traffic - Automated bots account for over 50% of global internet traffic, with malicious bots constituting about 20% of this traffic, leading to inflated metrics such as page views and user sessions [2][3]. - The annual loss due to bot-driven fraud in the global internet economy is estimated to reach hundreds of billions of dollars [3]. Group 2: Investment Implications - The current AI boom may resemble the 1990s internet bubble, with significant overvaluation of major companies, as indicated by a chart from Apollo Global Management's chief economist showing that the top ten companies in the S&P 500 are overvalued by more than 90% compared to the 1990s [4][5]. - The rise of unicorn companies, defined as private companies valued over $1 billion, has surged to over 1,200 by 2025, reflecting a market environment reminiscent of the internet era [5]. Group 3: Regulatory Responses - The Federal Trade Commission (FTC) has implemented rules to prohibit false and AI-generated consumer reviews, aiming to enhance transparency in online markets [9][10]. - Various states, including California, have enacted laws requiring bots to disclose their identity when attempting to influence voters or consumers [11]. Group 4: Future Considerations - Companies with inflated user metrics driven by bots may face valuation declines, while those with verified human-driven engagement and revenue are likely to thrive [13]. - There is an anticipated increase in demand for third-party verification of user and engagement data, alongside the development of more robust bot detection mechanisms [13].