I think it will hinge on one thing: Will AI provide an experience that is maybe worse, but still sufficient to keep the market share, at lower cost than putting in the proper effort? If so, it might still become a tragic “success”-story.
It’s very, very costly, both but the hardware and the electricity it takes to run it. There may be a bit of sunk cost fallacy at play for some, especially the execs who are calling for AI Everything, but in the end, in AI doesn’t generate enough increase in revenue to offset its operational costs, even those execs will bow out. I think the economics of AI will cause the bubble to burst because end users aren’t going to pay money for a service that does a mediocre job at most things but costs more.
I think it will hinge on one thing: Will AI provide an experience that is maybe worse, but still sufficient to keep the market share, at lower cost than putting in the proper effort? If so, it might still become a tragic “success”-story.
It’s very, very costly, both but the hardware and the electricity it takes to run it. There may be a bit of sunk cost fallacy at play for some, especially the execs who are calling for AI Everything, but in the end, in AI doesn’t generate enough increase in revenue to offset its operational costs, even those execs will bow out. I think the economics of AI will cause the bubble to burst because end users aren’t going to pay money for a service that does a mediocre job at most things but costs more.