AI: placebo or a pill?

Is AI placebo or a wonderful pill? Or maybe it is just a drug.

That what came to my mind when I was reading yesterday's stocks news.

"Upstart Holdings, Inc. engages in the provision of a cloud-based artificial intelligence lending platform. Its platform aggregates consumer demand for loans and connects it to the company's network of artificial intelligence-enabled bank partners.

Lower demand for loans and a higher requirement for returns from institutions that lend to Upstart UPST –10.21%"

10% in one day seems to be a lot. So was AI good for that company or was it a bad one. And the usual answer is... well.. there is no exact answer. It can be both. Upstart was propelled by AI, it is the core business for them. So that was a good AI and it is just a bad timing. Probably.

However, let's look at Zillow

"Zillow, an American online real estate marketplace, announced on November 2, 2021, that it will be shutting down its Zillow Offers operations and will be laying off approximately 25% of its workforce. As part of this corporate action, Zillow took a $304M write-down this quarter and will take a write-down between $240M to $265M in the next quarter. The company expects to sell all of its home inventory by March 2022 as part of winding down Zillow offers."

That is the bad, bad AI. And it was punished accordingly. However only after it spent these millions and people were let to go.

The reason I am writing it today is I was discussing yesterday about AI and business applications. And I am kinda agree, AI make life easier... mostly. We at HundredGraphs.com trying to make people more aware of energy spending at their SmartHomes, to be more green and AI is the big part of it as it helps us to analyze and predict. We love our AI, but we keep it on the short leash.