After a protracted period of raising waves, the hype around artificial intelligence appears to have taken a turn. Lately, we see an increasing number of media headlines dominated by talk of how the “AI bubble” is near bursting. Skeptical moods are growing out there, as many firms wonder if this technology will ultimately have the opportunity to justify the large investments which have already gone into it.
But personally, I feel there’s a greater query to think about. Namely, what happens after the hype? How will the trajectory of AI development change after the media interest and investor enthusiasm cool down? AI is touted as a transformative technology, but will its potential be enough to survive and prosper?
Well, let’s have a look.
Media Frenzy Is a Double-Edged Sword
To begin with, it needs to be mentioned that the large highlight shed on AI by the media over the past couple of years has been a mixed blessing for the industry.
On the one hand, the surge of interest has opened many doors and helped projects attract investments that might have otherwise remained out of reach. Developing cutting-edge technologies is unimaginable without significant financial backing and expert professionals. Each of this stuff became easier to return by because the hype attracted latest money and talent to this field.
Nonetheless, that very same hype has also led to what is known as “AI-washing,” where firms use the label of AI to draw funding and a focus. But in point of fact, such firms barely use the technology or contribute to its advancement. These exaggerations (and, at times, outright lies) have often led to betrayed expectations, damaging the trust between investors and the broader AI community.
The Decline in AI’s Media Popularity Is Hardly the End
There may be this thing called “Gartner Hype Cycle,” an idea that tracks the rise and fall of recent technological trends. Based on it, after the height of inflated expectations is reached, there is usually a steep decline because the interest and excitement wear off. And in accordance with research published by Gartner in June 2024, AI technology has already reached the height of expectations. Which implies, we’re headed for the downturn next.
It’s hard to say what exactly could trigger that downturn, but regardless of the cause, it won’t mean that the technology itself has change into less promising. It just implies that the word “AI” will not be used left and right with no reason. The issue with the AI bubble is not the technology itself. It’s just that too many projects labeled themselves as “AI-powered” to lure in investors, although a lot of them had little to do with true AI.
So when the bubble bursts, it won’t spell the top for AI. If anything, the technology will only proceed to develop, on condition that it has already proven its value in quite a lot of sectors, equivalent to e-commerce, healthcare, banking, and more. Real AI products can offer tangible advantages and can proceed to generate profits even when less viable AI projects fall by the wayside.
Past Tech Bubbles Paint a Positive Picture
Strictly speaking, it’s not like the present trajectory of AI is something unique for the tech market. We’ve seen similar bubbles before. Take 3D printing, for instance, which was one in every of the most important buzzwords in 2015. While the hype has gone down within the years afterwards, the technology itself continued to advance at a formidable pace. In 2023, the market was valued at over $20B and is anticipated to grow further.
It’s entirely possible that AI will follow an analogous path. The milestones achieved to date, especially in fields like programming, are too significant to be dismissed as mere hype. Matt Garman, head of Amazon Web Services, predicts that AI could replace most developers in a few years, and there may be some truth to that. AI systems are already coding at the extent of junior and even mid-level developers, however it’s not widely talked about because some within the tech community are reluctant to simply accept this variation.
That said, the progress itself is undeniable. Even when the hype-driven investments dry up, projects that deliver real value will proceed to draw funding. AI in banking compliance is a major example of a field where proper AI application can save plenty of resources. Smaller banks, particularly, which cannot afford large compliance teams, will find AI solutions tremendously helpful and definitely worth the investment.
Beyond the Hype, There Still Lies a Promising Future
To sum up, I might say that the long run of AI after the hype will remain optimistic. Media attention is certain to return and go — that’s just how this stuff work. But quite than signaling the top of AI, I’m of the opinion that the post-hype phase will result in a period of stabilization. The technology will proceed to mature and find its footing in practical applications, this time attracting attention for the best reasons.
