Tech
AI investment and its potential effects on urban digital twins | Computer Weekly
A popular topic of conversation of late has been the existence of a bubble in artificial intelligence (AI) and the likelihood that this bubble will burst with great detriment to the IT industry as a whole. Yet, and perhaps surprisingly, the impact of a bursting bubble on digital twins might not be as problematic as one might think.
Ready adoption and fast diffusion of AI might warrant the tremendous investment flows of past years and could create revenue and profit streams quickly. We might well be standing on the precipice of a bubble popping that will lead to massive valuation corrections, but digital twins stand to benefit from advancing AI either way – however, the timeline of AI-enabled applications of digital twins might move.
Since the start of 2023, AI-related companies have ballooned in valuation. OpenAI has been closely associated with starting the AI frenzy with the release of ChatGPT at end of 2022. The company was valued at $29bn in 2023 and reached $500bn in October of 2025, with observers wondering if the company could pull off a $1tn initial public offering soon.
AI-chip leader Nvidia’s stock meanwhile has multiplied by 13 between the beginning of 2023 and end of October 2025, making it the first $5tn company ever. Even companies that are related but are not at the centre of AI developments increased substantially in value, with the stock price of Microsoft and Alphabet more than doubling and tripling, respectively, during that time period.
AI encompasses many different types of technologies and has many use cases that it should be seen as an enabling technology rather than a sole application or a market. AI will play a major role across virtually all application areas, but to varying degrees. Similar to the way the internet shaped past decades – and will continue to shape coming decades – AI will transform industries for good in the long term, and potential potholes on the path that create setbacks are only par for the course.
Looking back to gaze ahead
It is worth recalling the dot.com era from the end of the previous century to judge AI’s current hype. The Nasdaq Composite index – a stock index that skews toward information-technology companies – peaked at more than 5,100 points in March 2000 and then rapidly declined to a final low of just barely above 1,100 points in October 2002 (it took more than 12 years then to move beyond 5,000 points again).
The January 2000 Super Bowl event marked the height of the bubble with 14 in-game ads by dot.com companies – only one of them still active as an independent company today. Now, many analysts see the signs of a tremendous AI bubble accumulate.
A crash is likely in the making. Similarly to 2000, a bursting bubble does not mean that AI will go away, as internet-enabled companies and business models did not vanish. On the contrary, AI will flourish as the internet did. In fact, many infrastructure elements such as datacentres will become affordable for general use after lofty valuations come down.
During the late 1990s, the construction of fibre communication networks was perceived as a tremendous business opportunity. The business never became as profitable as expected, but the initial excitement created an infrastructure of dark fibre – unused but readily available communication lines – that supports today’s business models as a commodity that can be readily leveraged.
AI as an enabling technology will boost capabilities and accelerate the use of advanced digital twins. In particular, digital twins that have to work with difficult-to-capture data and not completely understood real-world dynamics will benefit tremendously. Digital twins of machineries can rely on solid understanding of physics and measurable data that sensors can cost-effectively capture.
Factory environments have many known dynamics and interactions of equipment – even workers’ likely movement patterns can be plugged into simulations. But urban digital twins attempt to capture dynamics and behaviours of relevant elements across entire cities. They are not only subject to less understood dynamics but also phenomena that are difficult – often impossible – to measure.
AI can make available data usable and create data of unmeasurable phenomena. AI in digital twins also allow the use of scenarios to better prepare for sudden events that can affect the entire system in unexpected ways. City managers thereby can develop strategies for unusual weather events, pandemic-like occurrences or localised industrial accidents with ripple effects across the urban landscape.
Digital twins and AI to plan for tomorrow’s cities
Digital twins of urban environments are difficult to design, implement and maintain. The potential impact such digital twins can have commercially and societally promises to be substantial, however. Because of the number of parameters, intersecting dynamics and range of conceivable scenarios, the benefits AI can provide in understanding urban environments are massive. AI and digital twins reinforce each other.
AI can speed up the building of digital twins by supporting code development for virtual environments. Such applications accelerate overall design development and allow embedding design details more easily. For clients and users, AI reduces costs, enables faster implementation of digital twins, and allows for quick and inexpensive changes and alterations as requirements change or new needs arise. In addition, AI can improve the interface experience between virtual environments as well as simulations of operations and users.
Ari Lightman, professor at Carnegie Mellon University, explains: “Generative AI would be used to look at the entire simulation and turn it into a summary for humans. It could tell me things I might be missing and summarise things in a way I can understand.”
AI doesn’t only benefit digital twins but digital twins also support AI’s capabilities. Scott Likens, emerging technology leader at PwC, says: “We’re using digital twins to generate information for large language models [LLMs]…We see opportunity to have the digital twins generate the missing pieces of data we need, and it’s more in line with the environment because it’s based on actual data.” Such synthetic data of missing pieces are also finding use in other applications as “AI, XR, digital twins set to transform robotics”.
Nvidia serves the market of smart cities as city planners and managers are turning to digital twins and AI agents for urban planning scenario analysis and data-driven operational decisions, according to the company. It is providing a range of solutions to enable users to create photo-realistic, simulation-ready digital twins of urban environments to optimise city operations.
A partnership of Japanese companies is developing the digital entertainment city Namba in Osaka, Japan. The aim is to create the world’s first smart city that integrates AI, extended reality [XR], and decentralised physical infrastructure networks [a blockchain-based approach to manage decentralised networks] on a city-wide scale. The group intends to offer services beyond entertainment and tourism. Namba, being a neighbourhood within Osaka, has a limited claim to a city-wide application of the concept, however.
The silver lining of AI overinvestment
The existence of an AI investment bubble is increasingly perceived as a foregone conclusion. AI companies and technology suppliers are now even investing in each other’s operations, adding to lofty valuations. There are obvious indications of a bubble, but positive effects can emerge from the current investment excitement. Whatever the outcome, applications for digital twins will see their timeline solidify as the immediate future of AI plays out.
If use of AI applications proves to be an all-encompassing and rapidly growing market opportunity, the immense investment of the past couple of years will be retroactively viewed as forward-looking wisdom that locked in favourable competitive positions and profits for years to come. More likely though, investors have outrun their headlights, and expectations of adoption and diffusion of AI applications over the next years are vastly overrated.
If so, there will be a shock to the system like the burst of the dot.com bubble at the beginning of the century when the Nasdaq Composite Index dropped by almost 80% within 30 months. Initial warnings existed, with the former chair of the Federal Reserve using the phrase “irrational exuberance” when discussing the development at the stock market in December of 1996. Warnings of an exuberant AI bubble are common today.
Bursting investment bubbles hurt investors and bring down many companies –25 years ago, a slew of dot.com companies vanished. But related overinvestment in infrastructure can make assets suddenly affordable, opening new opportunities. Such affordability changes cost structures that enable business models that could not have become successful at previous valuations. Infrastructure overhang – infrastructure build for rapid growth that does not materialise in the short run – leads to commodification of infrastructure elements, which can democratise a technology for incumbents and startups alike.
The over-investment in fibre during the dot.com years ended up creating dark fibre – overbuilt fibre cables for data transmission – and this infrastructure has served as a ready and inexpensive resource ever since. For AI, investment in datacentres is comparable to the fibre investment from 30 years ago.
Morgan Stanley analysts forecast datacentre spending globally of up to almost $3tn between now and 2028. The amount is staggering, and it is difficult to imagine use cases and adoption rates that will provide the required return on investment for virtually any business model. But as initial investors see their investments decrease or vanish, new players can snap up or use related infrastructures at bargain prices.
Alkesh Shah, a tech analyst with Bank of America, explains the underlying reason for such recurring dynamics: “You always overestimate how fast the change will happen, and you underestimate the magnitude of the change.”
The impact digital twins will have on the marketplace will follow a similar dichotomy between today’s expectations of rate of change and tomorrow’s impact of such change. Digital twins require many technological bits and pieces to come together, and AI will play an important role for digital twins – if not tomorrow, then the day after tomorrow.
Martin Schwirn is the author of “Small data, big disruptions: How to spot signals of change and manage uncertainty” (ISBN 9781632651921). He is also senior advisor for strategic foresight at Business Finland, helping startups and incumbents to find their position in tomorrow’s marketplace.
Tech
I Tested Garmin Watches for a Decade While Hiking, Biking, and Climbing. Here’s What You Should Buy
Last year, Garmin introduced a Pro version that incorporates the inReach’s satellite communications savvy. Not only does it cost at least $400 more than the Apple Watch Ultra and $200 more than the regular Fenix 8, but you also have to pay for the inReach subscription plan, which has several tiers and ranges from $8/month to $50/month depending on whether you want features like unlimited texting or sending photo messages.
What you get for this mind-boggling price is a sports watch that can do anything and everything. It has best-in-class battery life (every Fenix can last for weeks on a single charge, and up to a month with solar charging) and features like the depth sensor from Garmin’s Descent line, which means this watch works as a full-on dive computer for scuba and free diving. It has a microphone and speaker for basic voice commands (although no onboard cellular connectivity), the surprisingly useful built-in LED flashlight, and Garmin’s signature built-in topographic maps, 24/7 health monitoring, and tracking for over a hundred different activities.
I’ve taken the 51-mm version on pretty much every outdoor sport—snowboarding, trail running, mountain biking, and rock climbing. Every time I use it, its capabilities far outclass my own. I have irritated many a fellow climber by attempting to track route difficulty, duration, and falls while integrating my Body Battery metrics and so on. The danger is always that you’ll spend more time fiddling with your Garmin Fenix 8 than you do with your actual sport. I have the version with the sapphire glass face and the titanium bezel, and have smashed it into rock faces with nary a scratch. If you’re up for paying the price and want a good-looking watch that will last forever (I have friends who are still wearing their Fenix 5s and 6s, and honestly, they’re fine), this is the one to get.
Best Running Watch
The Garmin Forerunner series launched in the early 2000s and has become the quintessential runner’s watch. Like all Garmins, the Forerunner comes in a range of price points, each offering different features. Last year, Garmin released the Forerunner 570 ($550), a midrange model with no LED flashlight or onboard maps, and the Forerunner 970 ($750), which is the premium version. Before I go into detail about why the Forerunner 970 is the best option, I should also say that I have tested many previous Garmin Forerunners at various price points. If you’re not a triathlete, the older Forerunners are still worth considering, and the entry-level $200 Forerunner 165 is aimed explicitly at runners, instead of including triathletes as the more expensive models do.
Tech
Save Up to 40% With These Acer Promo Codes and Discounts
Acer is one of the top largest PC manufacturers in the world, perhaps best known for its gaming line and budget-friendly options. If you’ve already got your eye on an Acer product like a laptop or monitor, and are shopping at the company’s online storefront, you should be using one of these Acer promo codes and coupons to save some cash on your purchase.
Save 40% on Accessories When You Build an Acer Bundle
If you’re buying from Acer, you’re most likely shopping for either a desktop PC or laptop. With this discount, you can get a really solid deal on accessories if you bundle it with a mouse, laptop bag, or headset. When you go to purchase a PC, just click “Build Bundle” and you’ll see some of the eligible options, all of which are reduced by 40%. The Nitro Mechanical Keyboard, for example, goes from $50 to just $30. That 40% is a real discount, too, as that same keyboard costs $50 on Amazon when I checked.
Beyond peripheral add-ons, you can also save 10% off Acer Care Plus extended service plans or McAfee LiveSafe antivirus subscriptions. You can bundle up to five products together to save the most money. If you’re headed off to college (or have a kid in the family), a bundle like this can get you everything you need for a gaming or studying setup on the go.
Shop Rotating Weekly Deals on Monitors and Gaming Gear
Acer’s PC gaming offerings come in either the flagship Predator brand or the budget-tier Nitro. Acer offers rotating weekly deals on everything from monitors to gaming laptops, some of which are my favorites that I’ve tested in their given category. The Acer Nitro V 16, for example, was a budget gaming laptop that I recommended quite a lot last year because of its incredible price. The one I tested was the entry-level version with an Nvidia RTX 5050 inside, but Acer has the RTX 5060 model in its own storefront. It’s $100 off right now at $1,200, which comes with 16 GB of RAM and a terabyte of storage. In fact, it’s only $30 more than the RTX 5050 model, despite offering a significant jump in gaming performance. These discounts are reflected right on the product pages, so there’s no promo code, discount code, or coupon code required.
Acer has a wide selection of monitors available, too, whether that’s a massive 49-incher or a more modest 27-inch gaming workhorse. One of my favorite discounts I saw right now was the Acer Nitro XV2, a 27-inch 1440p display with a 300 Hz refresh rate. It’s 44% off at the time of writing, bringing the price down to just $250. Because these discounts are swapped out on a weekly basis, it’s worth checking back to see if the product you’re eyeing has a new discount.
Select Customers Can Get 15% Off Their Purchase
Acer also offers a number of added discounts at checkout, including 15% off for students. Students will need to verify through Student Beans or SheerID. Because a lot of the devices Acer offers are budget-friendly, they can be attractive for students, and the extra 15% off is the icing on the cake.
We tested the Acer Swift 16 AI last year and really enjoyed the high-resolution, OLED screen and impressively quiet performance. Acer has the smaller version of this same laptop available, the Swift 14 AI, which is currently $150 off. You also might check out the Acer Chromebook Plus 514, a laptop we liked quite a bit when we reviewed it in 2024.
Acer offers this same 15% discount for active duty military, veterans, and their families. It also applies to healthcare professionals, which can be verified through its healthcare discount portal.
Tech
AI Research Is Getting Harder to Separate From Geopolitics
The world’s top AI research conference, the Conference on Neural Information Processing Systems—better known as NeurIPS—became the latest organization this week to become embroiled in a growing clash between geopolitics and global scientific collaboration. The conference’s organizers announced and then quickly reversed controversial new restrictions for international participants after Chinese AI researchers threatened to boycott the event.
“This is a potential watershed moment,” says Paul Triolo, a partner at the advisory firm DGA-Albright Stonebridge who studies US-China relations. Triolo argues that attracting Chinese researchers to NeurIPS is beneficial to US interests, but some American officials have pushed for American and Chinese scientists to decouple their work—especially in AI, which has become a particularly sensitive topic in Washington.
The incident could deepen political tensions around AI research, as well as dissuade Chinese scientists from working at US universities and tech companies in the future. “At some level now it is going to be hard to keep basic AI research out of the [political] picture,” Triolo says.
In its annual handbook for paper submissions, issued in mid-March, NeurIPS organizers announced updated restrictions for participation. The rules stated that the event could not provide services including “peer review, editing, and publishing” to any organizations subject to US sanctions, and linked to a database of sanctioned entities. It included companies and organizations on the Bureau of Industry and Security’s entity list and those on another list with alleged ties to the Chinese military.
The new rules would have affected researchers at Chinese companies like Tencent and Huawei who regularly present work at NeurIPS. The database also includes entities from other countries such as Russia and Iran. The US places limits on doing business with these organizations, but there are no rules around academic publishing or conference participation.
The NeurIPS handbook has since been updated to specify that the restrictions apply only to Specially Designated Nationals and Blocked Persons, a list used primarily for terrorist groups and criminal organizations.
“In preparing the NeurIPS 2026 handbook, we included a link to a US government sanctions tool that covers a significantly broader set of restrictions than those NeurIPS is actually required to follow,” the event’s organizers said in a statement issued Friday. “This error was due to miscommunication between the NeurIPS Foundation and our legal team.”
Before they reversed course, the conference organizers initially said that the new rule was “about legal requirements that apply to the NeurIPS Foundation, which is responsible for complying with sanctions,” adding that it was seeking legal consultation on the issue.
Immediate Backlash
The new rule drew swift backlash from AI researchers around the world, particularly in China, which produces a large quantity of cutting-edge machine learning papers and is home to a growing share of the world’s top AI talent. Several academic groups there issued statements condemning the measure and, more importantly, discouraging Chinese academics from attending NeurIPS in the future. Some urged Chinese academics to contribute instead to domestic research conferences, potentially helping increase the country’s influence in relevant science and tech fields.
The China Association of Science and Technology (CAST), an influential government-affiliated organization for scientists and engineers, said Thursday that it would stop providing funding for Chinese scholars traveling to attend NeurIPS and would use the money instead to support domestic and international conferences that “respect the rights of Chinese scholars.”
CAST also said it will no longer count publications at the 2026 NeurIPS conference as academic achievements when evaluating future research funding. It’s unclear if the organization will reverse course now that NeurIPS has walked back the new rule.
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