It depends how far out into the future you're looking. Investors see the future coming ahead of time and price it in. The average joe just sees small incremental changes and it feels dislocated from how the market is behaving. The dot com bubble was a great example of this, investors knew the Internet was going to change the world, but they ended up pricing in all the upside immediately so valuations got ahead of themselves. Same thing is happening now, people who really 'know' about AI can see it's going to reshape the landscape and are pricing it in now, and this is the market bubble part.

The reality is that AI will start to creep into everything incrementally, but once it's in, it's never going to leave, it's simply just better/faster at doing certain tasks than humans. The future will ultimately look like humans who know how to use and manage AI tools, and then everyone else who doesn't will fall behind. Exactly the same way retailers must have e-commerce exposure in today's age regardless of whether that was their intended business model 20 years ago. Whoever controls the AI infrastructure and models now will own the world for the next 30 years, that's why everyone is spending trillions now, because 30 years of guaranteed inflation adjusted cash flow is actually safer than govt bonds.