In the midst of the AI hype cycle, it’s essential to separate the noise from the reality. The recent debut of OpenAI’s ChatGPT has sparked a frenzy of innovation in the generative AI space, with nearly every major big tech player releasing their own version, and 92% of Fortune 500 companies adopting the tool. However, it’s crucial to learn from past tech hype cycles, where early innovators often don’t emerge as long-term winners. The article highlights the importance of refraining from making exaggerated claims about AI’s impact, citing examples of backpedaling predictions around AI replacing jobs. To determine whether an AI startup is worth the hype, one must consider factors such as the pace of evolution, access to compute and data, and regulatory and cybersecurity considerations. Ultimately, the quality and quantity of data that models are trained on will be the biggest differentiator.
AI Hype Cycle
As with any gold rush-like moment, it’s natural to look for the picks and shovels for others to build things and experiment — or in other words, create horizontal tools and infrastructure solutions.
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