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The artificial intelligence boom that has dominated global technology headlines in recent years is now showing signs of slowing down. While investment and promotion remain strong, the euphoria that once positioned AI as the centerpiece of innovation is starting to fade. Investors, markets, and developers are facing the reality that not every promise of artificial intelligence translates into real business impact.
OpenAI CEO Sam Altman openly admitted that some investors have placed unrealistic expectations on AI’s capabilities. He noted that the launch of the latest ChatGPT model did not run smoothly, signaling that the technology’s journey remains filled with challenges. Altman stressed the need to build realistic expectations so AI can evolve in a healthier and more beneficial direction.
Independent research revealed that 95 percent of generative AI projects in business failed to generate significant revenue growth. This highlights the gap between technological potential and real-world implementation. Many companies adopted AI simply to follow the trend, not because of strategic needs, which led to poor integration into business processes.
Only a small number of companies managed to use AI effectively. These firms typically focused on back-office efficiency, operational data analysis, and process automation, areas that created long-term added value.
The slowdown is also reflected in stock market movements. Shares of major tech companies, including Nvidia and Oracle, corrected after soaring on AI-driven narratives. Investors are now demanding tangible proof rather than optimistic presentations or promises of the future. This shift shows that global markets are becoming more selective in judging AI’s contribution to business performance.
Meta, one of the leading players in AI development, decided to pause large-scale recruitment for AI-related positions. However, the company reaffirmed its commitment to continue investing in research and development. This move is seen as a strategic adjustment to shifting market dynamics and a signal that the company is prioritizing efficiency over rapid expansion.
Criticism of ambitions to build Artificial General Intelligence (AGI) is growing louder. Former Google CEO Eric Schmidt argued that Silicon Valley is overly obsessed with the AGI dream. He warned that the pursuit of AGI risks overshadowing practical applications that are urgently needed today, such as cybersecurity, business efficiency, and public health. This perspective reinforces the need to realign AI development toward practical benefits that directly impact society.
The slowdown in the AI boom indicates that the technology is entering a natural phase of selection. Companies and developers able to prove real impact will endure, while those relying solely on hype will fade. This moment could serve as a turning point for the industry to reshape strategies, prioritize quality implementations, and balance innovation with tangible needs.
Read also the analysis on the future of AI regulation at Olam News to understand how global oversight could shape the direction of this technology.
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Samuel Berrit Olam
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