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Watching the Generative AI Hype Bubble Deflate (ash.harvard.edu)

submitted 3 days ago by sirboozebum@lemmy.world to c/technology@lemmy.world

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[–] andallthat@lemmy.world 10 points 2 days ago* (last edited 2 days ago)

Goldman Sachs, quote from the article:

“AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn’t designed to do.”

Generative AI can indeed do impressive things from a technical standpoint, but not enough revenue has been generated so far to offset the enormous costs. Like for other technologies, It might just take time (remember how many billions Amazon burned before turning into a cash-generating machine? And Uber has also just started turning some profit) + a great deal of enshittification once more people and companies are dependent. Or it might just be a bubble.

As humans we're not great at predicting these things including of course me. My personal prediction? A few companies will make money, especially the ones that start selling AI as a service at increasingly high costs, many others will fail and both AI enthusiasts and detractors will claim they were right all along.