"Cold shower" predicted for overhyped generative AI sector

[midian182]

Forward-looking: Even though public interest has started to wane, billions of dollars are still being poured into all things generative AI-related, with many businesses shoehorning the technology into their products even when it doesn't fit. But according to one analyst firm, the industry is in for a "cold shower" next year.

CCS Insight's roundup of predictions for the technology industry in 2024 (via CNBC) includes a warning for generative AI: next year might expose the fact that the reality of the tech doesn't live up to the hype.

"The bottom line is, right now, everyone's talking generative AI, Google, Amazon, Qualcomm, Meta, " said Ben Wood, chief analyst at CCS Insight. "But the hype around generative AI in 2023 has just been so immense, that we think it's overhyped, and there's lots of obstacles that need to get through to bring it to market."

One of the issues cited by CCS Insight is the huge cost involved in deploying and sustaining generative AI tools; ChatGPT maker OpenAI is estimated to be spending $700,000 per day to keep its famous chatbot up and running. While this might not be a huge problem for massive companies, Wood believes its use will become too expensive for many organizations and developers.

There's also the fact that Nvidia's expensive AI-focused GPUs are seeing overwhelming demand right now. Team Green, which holds over 70% of the $150 billion AI market, said it intends to triple production of the products next year to meet this increase, but that hasn't stopped reports that OpenAI and Microsoft are looking to build their own chips to lessen reliance on third parties, with more companies set to follow suit.

AI regulation is also on the horizon. So far, AI companies have agreed to self-regulate and manage the risks posed by their technologies, but governments are calling for tighter regulation. The EU's in-the-works AI Act could bar facial recognition and force developers of AI tools to submit them for review before general release.

CCS Insight also predicts that an internet search company will start adding labels to any material that is manufactured by AI next year and that arrests will be made for people who use the technology to impersonate others, either through deepfakes of voice, both of which we've already seen.

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https://www.techspot.com/news/100448-cold-shower-predicted-overhyped-generative-ai-sector.html

 

[Kam7r]

I already predicted the same bubble as the 2000-2001 one

 

[Theinsanegamer]

AI honestly isnt a revolution in most spaces. The predictive analytical cabilities have been around for years already. It's coding skills are......very mid.

Where its been disruptive is the creative industry. Deepfakes, voice cloning, AI generated art, these things have allowed creatives to make some truly stunning works but also utterly derailed anyone who cant figure out how AI works. But that market is limited in scope and income.

 

[WhoCaresAnymore]

A lot of people are blocking out AI addons and tools. Including the ones Microsoft keeps trying to sneak in with their updates.

We DO care at least a little bit about our privacy, and how these things affect everything else on our systems.

No AI for me, or at least that I can manage to block out!

 

[ScottSoapbox]

The slapping of AI onto every product regardless of if it makes sense is getting pretty annoying. I will be happy when it is back to useful additions.

 

[wiyosaya]

A lot of people are blocking out AI addons and tools. Including the ones Microsoft keeps trying to sneak in with their updates.

We DO care at least a little bit about our privacy, and how these things affect everything else on our systems.

No AI for me, or at least that I can manage to block out!

Right there with you. The element hiding helper in uBlock origin does an excellent job with Bing "AI". I've also turned off the "AI" crap in Windows 11 at work. Its not that hard to do. I don't want or need the "AI" crap. To me, its like Clippy on crack.

The slapping of AI onto every product regardless of if it makes sense is getting pretty annoying. I will be happy when it is back to useful additions.

Given that slapping "enhancements" of little or no value or that actually makes things worse has been happening since, like, forever, its no surprise that these AI "enhancements" are getting slapped everywhere these days. Its SOP and a sure sign of hubris for the companies that think they know their customer's wants and needs better than the customer themselves. Take Amazon's CS "AI," for instance. If you use it, it simply tells you what is easily available on Amazon's web site and for those who have already found that information, its an extreme source of frustration - and a worthless piece of crap.

AI honestly isnt a revolution in most spaces. The predictive analytical cabilities have been around for years already. It's coding skills are......very mid.

Agreed. The one place where it sounds like it is truly useful is in medical diagnosis - especially for doctors that cannot take the time to properly diagnose something.

Where its been disruptive is the creative industry. Deepfakes, voice cloning, AI generated art, these things have allowed creatives to make some truly stunning works but also utterly derailed anyone who cant figure out how AI works. But that market is limited in scope and income.

For "creatives" that cannot figure out how AI works, perhaps they should change their career, IMO. However, as I see it, there's not much, if anything, there worth investigating.

And yes, I agree. The "cold shower" for AI is coming - just like the "cold shower" the content providers are taking in their quest to get in on the "streaming fad." Maybe that will be a good thing as Nvidia might be left with a plethora of unsold stock of cards which they will then have to reduce to reasonable price levels to sell - it would serve them right, IMO.

 

[p51d007]

The only "AI" I use is the generative AI in photoshop. It's a big time saver when cleaning up or editing a photo.

 

[techstrike]

People starting to understand the boundaries of the AI technology, so the Big tech companies should stay on the ground and stop selling dreams in order to increase their shares.

 

[Jerry in WA]

Last time it was self-driving cars. Everyone wanted in and burned though mountains of cash only to find that making cars drive themselves with zero human input is really hard.

 

[Mr Majestyk]

Sound of champagne corks popping. I want Ngreedia to have a very hard fall that's for sure.