Can AI Models Have Abandonment Issues?
August 9, 2024
Gee, it seems the next big thing may now be just … the next thing. Citing research from Gartner, Windows Central asks, “Is GenAI a Dying Fad? A New Study Predicts 30% of Investors Will Jump Ship by 2025 After Proof of Concept.” This is on top of a Reuters Institute report released in May that concluded public “interest” in AI is all hype and very few people are actually using the tools. Writer Kevin Okemwa specifies:
“[Gartner] suggests ‘at least 30% of generative AI (GenAI) projects will be abandoned after proof of concept by the end of 2025.’ The firm attributes its predictions to poor data quality, a lack of guardrails to prevent the technology from spiraling out of control, and high operation costs with no clear path to profitability.”
For example, the article reminds us, generative AI leader OpenAI is rumored to be facing bankruptcy. Gartner Analyst Rita Sallam notes that, while executives are anxious for the promised returns on AI investments, many companies struggle to turn these projects into profits. Okemwa continues:
“Gartner’s report highlights the challenges key players have faced in the AI landscape, including their inability to justify the substantial resources ranging from $5 million to $20 million without a defined path to profitability. ‘Unfortunately, there is no one size fits all with GenAI, and costs aren’t as predictable as other technologies,’ added Sallam. According to Gartner’s report, AI requires ‘a high tolerance for indirect, future financial investment criteria versus immediate return on investment (ROI).’“
That must come as a surprise to those who banked on AI hype and expected massive short-term gains. Oh well. So, what will the next next big thing be?
Cynthia Murrell, August 9, 2024
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