United StatesThe article argues that current methods of valuing companies are outdated and ill-suited for the modern economy, which is driven by intangible assets like intellectual property, brand equity, and data rather than traditional tangible assets. While there is widespread enthusiasm for artificial intelligence as a solution to various business challenges, the author contends that AI lacks the ability to form opinions or assess value based on qualitative factors, making it insufficient for addressing the complexities of modern valuation. The piece highlights how economic changes, including increased private capital and reduced public market transparency, have made traditional valuation models inconsistent and unreliable. The author emphasizes that valuation remains fundamentally a subjective process requiring judgment and contextual understanding, which AI cannot provide.
Bias read (Center): The article presents a balanced critique of current valuation practices and the limitations of AI in this domain without taking a partisan stance. It discusses economic trends and technological challenges objectively, avoiding ideological framing or biased language.
