AI Hype: “Billions of dollars will be incinerated” Business Analysts Warn

We’ve all heard how artificial intelligence will supposedly bring giant boosts in productivity, take our jobs, and end humanity, but some business insiders think that AI isn’t going to have remotely as big of an impact as others have said. Indeed, they say that billions of dollars will go to waste.

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[djchrisi]

Nvidia proves the old saying: Selling shovels during a gold rush is the surest way to make money.

[chainqk]

I once did a factory visit together with a McKinsey analyst/tech evangelist. He first pitched a "modern factory with industrial IoT' to the leaders of the factory. The presentation has shown happy workers using augmented reality headsets, touch screens, and using voice control, to be mega productive while happily manufacturing things. Then we went to the floor where the manufacturing work was actually done. It was so loud we could barely hear each other screaming (we had to wear ear protectors) - so much for voice control. All the assembly workers wore thick protective gloves - so much for touch control, and protective glasses that got constantly damaged from sparks flying around, so it was the cheapest possible kind, so it was easy to replace. So much for augmented reality headsets. Needless to say, the leaders of the factory did not buy into the concept.

This is how much out of touch with reality these large "business analyst" companies are..

[LegHumanist]

Open AI is spending $5 billion to generate that $2 billion in revenue.

[seansingh]

In Chemical Engineering we have a very subtle saying. You can only automate processes that don’t have any possibility of an anomaly. You CS people should also do this

[KerbalFacile]

My employer, a rather large software company from the Silicon Valley, tried implementing AI internally by training it to do part of the tech support’s job. What was planned as a 6-month experiment turned into a 3 year fiasco of progressively reduced ambitions that never got delivered and a training set that kept growing (from our very manual efforts) while simplifying into irrelevance.

[higgs]

AI has led to the word "could" being hospitalized for exhaustion.

[Andre_XX]

I spent my carer working in IT. I saw plenty of hype resulting in outcomes rather less than was promised.

[jasonholtkamp]

I’m a back end software engineer. I work on a gen AI product at one of the tech giants (it’s slowly rolling out to more and more of the public). Let me tell you, it takes a lot longer than you think to get an *actually useful* end-user experience shipped and adding to the bottom line. My 2 cents after spending time in the trenches: The AI productivity increase will happen, but everyone will underestimate how long it takes to seep into every aspect of our daily lives. Just like the internet itself… big bubble in the 90’s, but by 2010s the world and the economy had been totally transformed

[jttcosmos]

Another group that is making significant money from the AI hype are consultants. For instance, Accenture's revenue explicitly from AI consulting last year exceeds OpenAI's revenue from building the systems behind it.

[Paradxn]

Another sector that makes money with AI are these consultants that publish predictions about AI that probably all turn out to be wrong

[Globularmotif]

"During a gold rush, it's the people who sell the shovels and the cold beer that make the profits."

[teardowndan]

Microsoft tried baking AI into Windows and most desktop users said: "Heck no."

Due to processing power, bandwidth and memory scaling requirements, it is only a matter of time until companies realize that generalist AIs are not economically viable. Another problem with future AI going forward is the amount of AI output contaminating training inputs, much like circular references in science.

[GrahamChristie-jgsw]

I believe GDP growth related to AI will come from individuals using the technology as a tool, much like how word processors replaced typewriters

[ArcanePath]

Training humans to act like AI is the Amazon way.

[tedspradley]

You can't pay for this "AI" by eliminating a bunch of low-paid customer service employees. To make it practical you'll have to go after the more highly-paid workers, the CEOs and financial advisors.

[WamSUBNZ]

Every video gets better
Keep up the amazing work sabina

[smashy_smasherton]

It’s put me and my little online consulting business out of work already. When our clients come back with their rejected documents we are going to charge them 35% more.

[MrFlexNC]

With such hype comes a definite bubble burst but that doesn't mean they hype isn't grounded in truth. The internet bubble also popped but it did deliver big time

[robertfindley]

As someone once said, the phrase "Out of sight, out of mind" could be interpreted as blind and crazy.

[quietStorm]

This is a wonderful update. Thank you, Sabine!