Technology

A big part of the problem -- and this is not a new issue, goes back decades -- is that a lot of terms in AI-land don't correspond to concrete capabilities, so it's easy to claim that you do X when X is generally-perceived to be a much-more-sophisticated thing than what you're actually doing, even if your thing technically qualifies as X by some definition.

None of this in any way conflicts with my position that AI has tremendous potential. But if people are investing money without having a solid understanding of what they're investing in, there are going to be people out there misrepresenting their product.

Same with all cryptocurrencies having a "white paper", as if it was anything other than marketing crap formatted like a scientific paper.

Broken clock etc.

It's costing them money, and they're not sure they're going to get it back.

At my previous job their was a role where you just called insurance companies and asked them incredibly basic questions about what they planned to do for a patient with diagnosis X and plan Y. This information should be searchable in a document with a single correct answer, but insurance companies are too scummy for that to be reliable.

In 2021 we started using a robot that sounded like a human to call instead. It could handle the ~80%+ of calls that don't use any critical thinking. At a guess, that's maybe 5-10% of our division's workforce that wasn't needed anymore.

With the amount of jobs like this that are 100% bullshit, I'm sure there are plenty of other cases where businesses can save money by buying an automated bullshit generator, instead of hiring a breathing bullshit generator.

The stuff they're calling ai now is just predictive text algorithms. I really can't wait to stop hearing about this because it is all artificial with no intelligence.

Funny you should mention that McKinsey published a paper a few months back concluding that GenAI will take over most of the jobs in America because it was good at doing what McKinsey Associates do. Missed by the authors is that the job of a McKinsey associate is to confidently spout nonsense all day long and that's actually exactly what chatgpt is programmed to do.

The internet is a funny analogue!

Because it experienced the dot com crash under almost the same sort of circumstances.

You're right. Once it settles into its niches and the hype dies down, it won't be overhyped anymore because everyone will have moved on.

I've been working with generative AI for years now and we still struggle to solve real world problems with it. It isn't useless or anything. It's way too unreliable, and this isn't one of those things where time will solve it - it's being used to solve problems that have no perfect solutions, like human interfacing and generating culturally-appropriate and visually-accurate images. I'd expect it to improve at those tasks over time, but the scope needs to drop from every problem humanity has ever faced to the problems that these models are good at solving.

Not really comparable.

AI has lots of potential for the future, and Goldman Sachs continues to invest in that sector.

They are specifically talking about the bubble of Generative AI startups, none of which have any long term viability as they either produce a novelty, or they produce something so inaccurate that nobody would trust it after using it.

They aren't the people saying that the Internet won't catch on. They're the ones warning you that dot com is a bubble.

They're right.