The Great AI Reality Check: How the Bubble Finally Started to Burst 🎈💥

Author(s): MahendraMedapati

Originally published on Towards AI.

From miracle technology to a corporate money pit in just three months

Remember when AI was going to save us all? When every startup pitch deck had “AI-powered” slapped on it like a magic spell? Well, grab some popcorn because the show’s getting interesting. 🍿

In the wake of significant scrutiny, the AI industry is facing harsh realities as a recent MIT study exposes failure rates exceeding 95% among corporate AI initiatives, raising concerns about the sustainability of investments in AI technologies. While a few companies, notably Nvidia, thrive amidst the turmoil, most businesses are burning cash without tangible returns. This landscape suggests that, rather than liberating employees, AI is compounding workloads and perpetuating a cycle of overhyped promises, leaving executives grappling with mounting pressures to justify their spending amidst an overzealous expectation of productivity gains.

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Published via Towards AI