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Artificial investment

The Verge · 10m

Investors and executives in the tech sector have high expectations for AI, but recent financial results from companies like Microsoft and Alphabet have shown that the hype may be too inflated. The Gartner hype cycle suggests that the AI industry is entering the trough of disillusionment, as the market has realized that the promised transformation may not be as immediate or revolutionary as anticipated. AI adoption in business is still in the early stages, with IT departments leading the way in implementing AI tools like Microsoft's Copilot. However, the high costs associated with AI development and the need for sustainable business models pose challenges for AI startups. Additionally, there is a growing concern around tech antitrust and the acquisition of AI companies by mega-cap firms. Despite the demand for AI services, adoption and profitability may not meet expectations, as AI tools still require human review and may not offer significant advantages over human capabilities.