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If "AI" doesn't attract customers why are companies hyping it so hard? Are they just dumb or is there another factor? (lemmy.world)

submitted 2 months ago by [email protected] to c/[email protected]

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I've seen reports and studies that show products advertised as including / involving AI are off-putting to consumers. And this matches what almost every person I hear irl or online says. Regardless of whether they think that in the long-term AI will be useful, problematic or apocalyptic, nobody is impressed Spotify offering a "AI DJ" or "AI coffee machines".

I understand that AI tech companies might want to promote their own AI products if they think there's a market for them. And they might even try to create a market by hyping the possibilities of "AI". But rebranding your existing service or algorithms as being AI seems like super dumb move, obviously stupid for tech literate people and off-putting / scary for others. Have they just completely misjudged the world's enthusiasm for this buzzword? Or is there some other reason?

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[–] [email protected] 1 points 2 months ago

Investor FOMO
Threatening Labor

[–] [email protected] 0 points 2 months ago* (last edited 2 months ago) (1 children)

Hype brings investment money to the table. When an emerging technology appears, you can say we are looking to develop those technologies into our existing products and you will see a bump up in your share price.

After a few years of failed products and the hype dies for the next thing you can never mention the old hype but keep the bump in share price.

Think about 5-7 years ago, Blockchain was all the hype, 5-7 before then was Machine Learning and XaaS, before that was Big Data.

[–] [email protected] 1 points 2 months ago

Yeah, investors kind of amplify hype. When there is hype, you will have some investors investing money.
If there's investors investing money, it makes sense for other investors to try to invest first, so that their invested money gains value (the share price rises).
And then it becomes somewhat of a self-fulfilling prophecy, because suddenly you do have companies equipped with money to pursue that hype, which can feed back into the hype.

But similarly, you'll eventually reach a point where it does not live up to the inflated hype and then shareholders can just as well be extremely quick to pull out their money and amplify the crash.

[–] [email protected] 0 points 2 months ago (1 children)

Suits heard about this secret sauce called AI that can cut down on the need for those pesky humans that are always looking for handouts and luxuries like a living wage and benefits. The consumer will have to accept it when the only choices they're offered are varying flavors of the same shit.

[–] [email protected] -1 points 2 months ago

(but also it doesn't work and they are, in fact, just dumb)