Are we in an AI hype bubble?

We are definitely in the AI hype bubble.

But AI seems to be creating value.

I equate AI hype right now similar to mobile-first hype in 2008. There were new products created because of mobile. And existing products adopted mobile to deliver value.

New AI-first products are being created, and existing products will adopt AI.

It seems to me like a tsunami of BS. For every article about chatgpt passing the bar exam, there's another about the complete lies it spews -- like when it reported "eagles aren't real", or made up one guys obituary,etc. Then there are the plagiarism lawsuits:

ML is not AI. If you can't trust the answer then why ask the question?

I don't see how this is a business for anybody but Open AI and the other big tech. Even if you can tell the chatgpt to do something and then sell that something, why can't everybody else? There's no barrier to entry. And if you were successful, you're totally dependent on one vendor. These startups will flourish like apple blossoms the spring, and then vanish by summer.

We'll see more crappy, pointless blog posts on 'passive income' because they can be generated at the speed of electrons. More bad code -- because even if the snippets are stolen from some good repo, gluing them together into a useful product still requires a brain. All these 'coders' who can't even figure out how to copy and paste from Stack Overflow but need ChatGPT to do it for them might as well get used to asking people if they want fries with that, because the very tool the use will render them unemployable . Why hire a uneducated dipsh*t to write buggy source when you can get a chatbot plagiarize it for 7 cents. My daughter (senior in CS) says all the freshman are getting busted for cheating with chatgpt. I'm sure they'll be aces with leetcode. Love to hire one of them for my startup.

AI is here to stay. Some companies/sass products will die off, no doubt. Some could be absolved by big bi corps. We are beginning to see mass integration of AI capabilities into almost every digital product we use.

I think that unlike crypto — which was clearly speculative — people are very much looking forward to the use of AI, it is also controversial, but in my opinion, not in the same way. The uses of AI are very easily understood by the general public, even if they don't like it, while it was always a war to make people understand the interest of crypto and nfts. I think we are not in a bubble, but in the introduction of a big change in our working methods.

Yes, We are but AI is not Mature Enough to be Fully Usable without any Issues being faced. I Agree with previous comments that it is an early bubble phase which can be much better if given more time.

Based on the Gartner hype cycle, cryptos seem to be at the Trough of Disillusionment while AI is at the Peak of Inflated Expectations, so possibly the answer is: yes. However, I consider AI to be a field with more possibilities than cryptos and I do not rule out that it still has a long way to go before the field ceases to continually surprise us.

We are in a hype, not a bubble. A better comparison would be "web 2.0" or "cloud"

There will be a shift in the way we build and use apps, the same way we had with GMail, Flickr, and Facebook. Or AWS and Google Cloud.

This an smartphone moment, would be better to look at comparison between iphone and AI. We have a complete white space to build and create, just think on app store we a have more then 2milion applications, we are going to have the same boom

I don't think so, AI solves real problems. In the near future, we will use this to solve our daily problems. Crypto doesn't solve any problem, so that is the bubble. However there is hype but I think every product like Word, Excel, or web chatbots will be used ChatGPT.

Yes we are but we're still very early in the hype curve. More like Bitcoin in 2014. AI is delivering a lot of value and we're nowhere near "overhyped" territory yet.

As an AI technology developer I can provide an objective view on this question without any bias or emotions.

There has certainly been a lot of hype surrounding AI in recent years, and it's fair to say that some of it has been overblown. However, it's also true that AI has made significant strides in recent years, and it has the potential to transform many areas of our lives.

There are certainly some areas where AI is being hyped more than others. For example, some people are overly optimistic about the ability of AI to solve complex problems, such as creating a fully autonomous self-driving car or curing all diseases. In these cases, the hype often fails to take into account the many challenges that still need to be overcome before these goals can be achieved.

On the other hand, there are many areas where AI is already making a significant impact, such as natural language processing, image recognition, and recommendation systems. In these cases, the hype may be more justified, as AI is already delivering real-world benefits.

Overall, it's fair to say that there is some hype surrounding AI, but it's also true that AI is a transformative technology that has the potential to change many aspects of our lives for the better. The key is to approach AI with a clear-eyed understanding of its capabilities and limitations, and to focus on using it to solve real-world problems in a responsible and ethical manner.

There's certainly a lot of excitement and hype surrounding artificial intelligence and its potential applications, and many businesses and investors are eager to get involved. However, it's difficult to say whether this constitutes a "hype bubble" in the same way that the dot-com boom of the late 1990s was a bubble. Unlike the dot-com boom, where many companies had business models that were not sustainable, AI has the potential to deliver real value to businesses and society as a whole, and the advances being made in the field are driven by actual progress and breakthroughs.

That being said, there are certainly some overvalued companies and investments in the AI space, and not all of the claims being made about AI are entirely grounded in reality. As with any new and rapidly growing field, it's important to approach AI investment opportunities with caution and to thoroughly evaluate their potential before making a commitment.

Yes, I think AI is currently hyped but in reallity thats how markets behave when a new product comes out. I think it will be less talked about on the coming months but definitely is here to stay, create new businesses and improve existing ones that decide to adopt it

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I certainly think we are in a hype bubble when it comes to ChatGPT. I feel for people who have been following the AI/Machine Learning field for a while, what we are seeing with ChatGPT is not so surprising. We've been building towards something like this for years.
But for the general public, this is certainly something new and the ability to have a "conversation" with it gives it that extra wow factor and makes ChatGPT seem sentient and elicits an emotional response. I think overtime the hype will die down as people get used to this.
That said, we will definitely see a lot of good use cases come out of it and the commodification of language model AI will likely make it ubiquitous on apps and websites in the future. You can make a case to plug in some sort of chat AI on pretty much any website/app (ex. user support bot).
Compared to web3, I think the AI hype is more about what AI can do. The technology is reaching a certain level of maturity after decades of development and research (since 1950s). Whereas most people were just hyped about "numbers go up" when it came to crypto and did not give it enough time to develop (bitcoin was only invented in 2009).
That's not to say crypto won't one day have an important place in society. I just don't think it has gone through enough development cycles to get to a point of usability for a typical person. Also the value add is much harder to appreciate on a day-to-day. Most people don't care about the difference between sending a bitcoin transaction vs using something like paypal or care to understand the difference between saving a .jpg and owning an NFT. The values of decentralization is hard to appreciate when existing institutions work just fine..for now.

AI is going to become a tool that is in lots of applications and we don't even realize it.

Similar to spell check. We just use it and like it.

That being said, the current hype around AI is large, but more warranted that is was for crypto.

Code opened up the door for us to enter the virtual world - now AI is opening the door for the virtual to enter our world.

I believe AI is here to stay. Last month I created a small product for my use (Terminal/CLI command management), and I realized that AI would bring many benefits, so I implemented it using GTP-3. I liked the result so much that I ended up launching it as a product: https://komandi.app

I also pretend to bring AI to my other product (https://vemto.app). I have done some tests, and the results are stunning.

Agree; this time, the impact is easily measurable. However, there will be a lot of churn when the hype ends. As of now, I believe the best strategy to stay in the game long-term is to either build your own model (only possible with tons of VC money) or focus on building a real product not just a feature and seamlessly integrating with existing best-of-breed IT infrastructure.

I don't think it's hype. I've seen a lot of people running profitable saas products which are providing real value to users.
Also, in my opinion, AI is not something new, Google, Netflix, and all other big giants and medium size companies were using it for years.
It now just became accessible to consumers.
So how can this be hype when we are using AI from the start of the internet age?

I wonder what will be the best business model for this technology, and if there are any chances to start getting ads while using ChatGPT.

Feels like the web3 hype initially....

We' re definitely in for AI is year 😅

With hundreds of applications launched already this year, I think thousands will be launch before the year runs out.✅

And as a UIUX designer with love for automation and AI, I'm fully ready for the bubble.

Not much have been launch around AI powered social media management tool, AI Resume builder, AI powered gig proposal writer, scholarship letter writer etc

I think it will be awesome to work on something those to fit in with the bubble.

I don't think so. I see people using this actively everyday compared to web3 which is hard to explain and hard to use.

Also I am comparing it to the NLP / chatbots hype from 2016-2017 which was similar but the output produced by the models back then was not comparable to the ones we have now.

this is helpful, thank you

I deffinetely like this, as i am A marketer for Ai page

Some "hype" factor is there, but current AI tech (especially generative text such as ChatGPT) is going to give rise to some amazing apps going ahead.

IMO, this could be as early as the next 2 years.

I definitely think we are. I spent some time on marketplaces to analyze a few SaaS for sale and started seeing lots of A.I Micro SaaS. I think people are building stuff quickly to leverage the trend and resell them. I don't think it's sustainable.

I wonder If Ai is gonna takeover physical jobs as well such as laser engravings etc.
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I think it is a very substantial boost to any product and companies are racing to see where they can apply it to develop new features or enhance new ones. All types of people are using the AI breakthrough to either enhance their learning, productivity, their business, and even their personal lifestyle and health. Technologies like AI have a very pertinent component to them, either they are developed for narrow specific cases and serve one singleton within the app, or they are just very enhanced deep learning models. Now with the advent of a breakthrough in 'general purpose AI', the use cases for such technology are not predictable, so everyone is trying to see how can the technology add to their business.

AI ChatGPT is Everything Everywhere All At Once

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Crypto is fully speculative space. There is just 1% of helpful project, innovating and bringing value.

99% of Projects are closer to a scam than to a business.
Only people with market insight win some what. But.. again, many super influential people and even big funds fail to earn anything
Speculative market

When, AI is not about "money"
People love it, cause it does bring the value . So, AI to stay and there will be no bubble

Cause AI is based on "data". There are no crippy expectations to earn "millions" with it

AI is accessible to tech and non tech people, so it is disruptive

Defo in a bubble, but in my mind AI is to broad a term to call it a bubble.

Generative AI (ChatGPT for X) = Bubble! Load of VC money will flow in, many will fail, a fe will win, LPs will loose a lot.

Supervised/semi-supervised AI = On the verge of a few big breakthroughs hopefully, not a bubble... yet.

I think the world is prone to bubbles nowadays. With the rise of social media, these trends are self-propelled as more people share, like or comment about a topic until enough people understand and stop finding interest or curiosity in it. Although crypto may yet play a role in the future of tech, it's probably not going to massively change the lives of many outside of the finance industry. Although this AI bubble may burst, I think there's so much more to come from it, and this is stuff that has and will continue to affect the lives of each of us. Therefore, I think it will drop off as the novelty of ChatGPT wears off, but it will stay much more relevant than crypto ever could.

We are already in the age of AI. Products like Tiktok & ChatGPT are just the beginning

Hard to avoid innovation when this much money is being dumped in - but yes, I'd def say we're in a bit of a bubble. Guessing most entrants will bust over time given everything at play. Feels like the market is still figuring out where it's most valuable.

I think we are going to see a lot of innovation around AI but it is also going to be quickly commoditized. Users will benefit, companies will burn a lot of capital. There will be a few winners but a LOT of losers.

There are some really amazing applications for ML

Such as AI assisted customer support

NLP, can greatly increase productivity of customer support agents.

Also ML models can try to predict solutions, the customer support agent can then decide if the ML model is right or wrong and then provide a better solution quickly.

AI improvements are always going to get overhyped because the average hobbyist/industry observer/entrepreneur has in their head that the coolest thing about AI is that it will improve itself. So everyone is sort of waiting for the point where AI is good enough to build on itself, at which point it will literally be able to do everything.

That's cool, and it's been the plot of a lot of movies, and that's what using ChatGPT and art-generation stuff FEELS like to random people. It seems incredible, different, and alive, and so I think a lot of people are like "it's here, this thing is going to teach itself anything", even though that is absolutely, categorically false because and the end of the day we're still talking about a really good application sitting on a really deep language model.

So we're definitely in a hype cycle where people think AI is going to write everything soon, as if the primary value of writing is to create endless documents that generate a dollar per word or whatever, and not "to communicate original ideas in a way that resonates with other humans". There is real value in automating certain writing and "art" that basically smushes together existing human generated content in customizable ways, but I personally believe the actual value of that is way, way, way lower than most people are making it out to be because they're expecting this to improve in ways that it fundamentally cannot.

In short, much more practical than crypto, but a lot of the same hand-waving and logical errors being used to make it seem like a transformational moment instead of yet another (really cool) step up the ladder.

We might say that there are lots of noice around AI but that is because we are at the stage of its rapid growth. The next stage will be embracing ai in many life aspects as logical extension to human brain. Promising and looking forward ✌🏻

This time AI is for real.

I used to study AI/ML and building neural nets back in University 15 years ago (oh gosh), during the second AI winter. I was very skeptical back in ~2015 when people began using NVIDIA to train their deep-learning models.

Now I've changed my mind.

AI as is in its current form has a tremendous use. I was blown away by Midjourney and then ChatGPT. Today I'm using ChatGPT daily and even decided to pivot my product HARPA.AI (https://harpa.ai) from Web-Automation to AI.

I would say we will for a long time

During the cryptocurrency boom, there was an opportunity to benefit from the sudden price increase, even for coins with limited or no real-world use cases. On the other hand, the popularity of AI is driven by its actual usefulness and productivity, particularly in the information industry. This is why I would be hesitant to label the AI boom as a bubble, but rather a legitimate reflection of market demand.

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Ultimately there are 4 layers to the AI business game:

layer 0: the tech needed to actually run a model (cloud computing, chips, etc.)
layer 1: The AI model itself. There will likely only be a few of these because they are expensive as hell to build.
layer 2: People will build refined layers on top of layer 1 that focus on one thing. So focus and train the layer 1 model to specialize in one area (ex. law), which then does give them some differentiation.
layer 3: applications built on top of layer 1 and layer 2 models.

Layer 3 is where most of what we are seeing right now exists. It's also the layer with the least differentiation and zero moat.

A little controversial, but I think the "AI hype bubble" isn't really a bubble. Crypto is obviously an investment opportunity and it's hard to find use cases, so a "bubble" is a great comparison.

What I think is happening is that this is just a young market without established players yet. So it seems like "hype", but it's not quite that.

But I think the ones that are going to thrive are the ones that are not GPT wrappers. Since those are too easy to replicate.

I've got an AI tool myself Evoke. Gotta focus on building the technical moat

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I do believe its a hype bubble, that is the primary reason I have not created a single tool using Open AI. Even if I would be late, It would not take more than 5 minutes to generate my API key and plug it in, thats what everybody is doing, right?

Hype bubble? Yes.
Like, 1998 Internet craze maybe. But then there's a chance that we don't ever see an "AI bubble burst" because the market is already down by so much and will go crazy once more and more applications turn out to be solid value adds.

As an example, ever since we launched our AI video editor, we've seen that most of our initial buyers were not (as we were expecting) people who already create a lot of videos, but rather people who were stuck and not producing videos before.
By allowing them to edit videos with a single click we are expanding the universe of video creators, and opening a new market.

That also means that a lot more value can be created then, by others (freelancers, other platforms) that can sell to these new creators. And in turn they can create and grow new businesses that would not have existed before. All of that is enabled by the A.I. we've built.

In that sense, there is no putting the genie back in the bottle. The current AI craze is probably wildly underestimating the value of current AI tools.

Sébastien

Seems like it, but AI has still alot of potential to develop further and obtain even bigger levels of hype across the world.

I believe that a lot of individuals, including myself, are constructing using AI right now, but the majority of what they are doing will become commodities since they don't have exclusive rights to the model, thus there is no moat.
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