Stefan Raupach’s Post

🤖 Have you ever thought that AI is overhyped? As the AI hype starts to chill out, IT is finally facing reality. 🎈 Are you one of those people who have been carried away by the AI storm? I am still shocked, to be honest. However, after months—years—of hype and anticipation, the industry is now struggling to make AI profitable and sustainable. Having GitHub Copilot suggest code completions or using ChatGPT to summarize text is cool. But many people are starting to ask themselves, "When will we start to get some real return on investment?". 🔀 Start-ups like Inflection AI, a pioneer of AI innovation, are now shifting their focus. Now they are trying to aid other companies rather than look for pies in the sky. Google's AI search tool, after a lot of testing, is still full of errors. AI development is complex. Add to that legal and regulatory concerns. Think the lawsuit filed by the comedian Sarah Silverman. She accuses OpenAI of stealing her work to train its artificial intelligence. And Europe is now just one step away from adopting the landmark AI Act. Politicians in the U.S. are also debating how to regulate AI. 💲 Venture capital keeps flowing in. Big Tech is still commited to AI 100%. The main problem? Lack of profitability. The costs of developing AI are high. And its operation poses many challenges. So far, only a couple of companies have been able to benefit from the AI mania. Industry insiders say we are still far from widespread adoption and high profitability. The reality may be sobering. But the push into AI is unstoppable. According to Pew Research Center, around 23 percent of U.S. adults said they’d used ChatGPT at work in February 2024, compared with 18 percent in July 2023 📈 Despite the problems, there's optimism that innovation and progress will lead us all to a brighter future. The tech industry must navigate regulatory issues, technological limitations, electricity use concerns, and financial constraints to unlock AI's true potential. 💡 Will it succeed? I guess only time will tell. And what's your opinion? Please share your thoughts with me below 👇 ✅ You can check out the full article on the AI hype bubble in The Washington Post 👉 https://cutt.ly/cewbimfZ

Is the AI market a big bubble set for bursting? And will jumping on the bandwagon, contribute to the burst? This a great video by Sky News and worth a watch, exploring the potential of the AI market being a bubble waiting to pop. It doesn’t matter which camp you sit in when it comes to the AI debate, it won’t take away the fact that AI is here to stay. But what puts the market at risk of becoming a burstable bubble, is companies building AI products for the sake of building AI products. We at Loopin made this mistake, getting caught in the hype of it all, and deviating off track to a degree, early last year. But what changed our thinking, was going back to our core mission and the problem that we solve, looking at AI as not something that we need to build and be part of, but instead, invest in how it makes us better at solving the problems we originally set out to solve for our customers. Loopin aims to understand how people are at work and give them what they want when they need it, across a wide range of people areas. This has and always will be, what we look to achieve. Where AI comes in for us, is helping our customers and users better understand sentiment data, provide digital coaching, give faster access to learning and training materials, personalise the development journey, and give quicker access to information from across a company. This can be used to improve well-being, boost engagement, drive high performance and increase operational efficiencies. Core problems that have been, and will always be there. In my eyes, what puts the market at risk, is too many companies building and deploying AI products for the sake of it and just trying to be part of the 'hype'. What will make the market stronger, is companies and startups sticking to solving their true problems, and augmenting themselves, using an AI application layer to solution for the problems they solve, even more effectively. What are your thoughts? Boom or bust? https://lnkd.in/eEFPBxdt #ai #tech #bubble #people

In his article "Thought Partner," Greg Shove addresses the disillusionment surrounding artificial intelligence, highlighting the gap between initial hype and current realities. While many view AI as a bubble, Shove emphasizes its potential as a valuable thought partner in the workplace, enhancing decision-making and productivity. He shares insights from his experiences, demonstrating how AI can effectively serve as a trusted adviser, helping professionals anticipate challenges and refine their strategies. This piece is essential for anyone looking to understand the transformative role AI can play in their work.

Our Managing Director Mehul Nagrani, has a new article featured in VentureBeat here he shares strategies on avoiding wasteful spending and making strategic investments in AI. Check it out! #VentureBeat #Innovation #AI

I'm not sure if the AI bubble will burst any time soon, but I'm pretty sure this is a valuable lesson to all companies that pivoted and created half-baked strategies about leveraging AI for their companies. With great promises, come great expectations of returns and I'm sure there are several executives out there panicking about how to save their ill conceived strategy. There will be winners out of this bubble, and my bet would be on companies that are very informed, and conscious about their usage, and financial investment in AI. Perhaps then we can have a proper case study, and dissect the impact of AI on the financial performance of a company. The benefits of AI are still there, and still very possible if we take out the hype surrounding it. It's not just about build or make, but it's about what you're trying to achieve with the additional cost in tech? At the end of the day, quarter, and financial year - that investment in AI must be attributed to some form of top/bottom line improvements that decision makers and shareholders are willing to 'pay for'. There's also the lack of patience in the benefits of AI to a company, if we treat it as an investment we shouldn't be expecting net gains/improvements immediately. #AI #AIBubble #technology #strategy #investment

Our Managing Director Mehul Nagrani, has a new article featured in VentureBeat here he shares strategies on avoiding wasteful spending and making strategic investments in AI. Check it out! #VentureBeat #Innovation #AI

As you think about saying yes to that next AI project , look at the cost of the needed resources, today and over time, to sustain that project

Companies are about to waste billions on AI — here’s how not to become one of them: The excitement around AI is real and justified. But with hype cycles come not only sound investment, but also loads of waste.

"Let's tell an AI story!" -- everyone. We have officially reached peak gen AI saturation. This is the point in the undulating curve of newsworthiness where we go from a low bar for stories on this topic, to a very high bar. It's not enough for startups to talk about: - Your proprietary data - Hypothetical use cases - Your AI product roadmap - The new hire with an AI background There needs to be something real, verifiable and tangible for companies that are not household names yet to land an AI story.