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Investors expect AI use to soar. That's not happening

economist.com

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Re: Investors expect AI use to soar. That's not happening

#11

Post by phkahler »

techblueberry wrote: post #6
david927 wrote: post #4

I watched the Google interview with Ilya yesterday and this came up. There's a large disconnect between the evals and the real-world performance, and he admitted that the evals are targeted. There was a storm of hype the last couple weeks for Gemini 3 and everyone, correctly, rolled their eyes. Investors are demanding a return and it's not happening. They're just going to have to face reality at some point.

I was wondering if AI was essentially the last hype cycle, that’s what it’s sort of been billed as, the tech that can do everything, but I guess robotics could be a next big thing to replace it, basically applied AI.

>> I was wondering if AI was essentially the last hype cycle

The next hype wants to be quantum computing, but its just not there yet - never mind the lack of real-world applications.

I thought nVidia would start promoting GPUs (whole data centers) to run classical simulations of QC to develop the applications while real hardware gets figured out.

Re: Investors expect AI use to soar. That's not happening

#13

Post by p1mrx »

1vuio0pswjnm7 wrote: post #3

Alternative to archive.is x="\"Mozilla/5.0 (Linux; Android 14) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/127.0.6533.103 Mobile Safari/537.36 Lamarr\"" y=https://www.economist.com/finance-and-economics/2025/11/26/investors-expect-ai-use-to-soar-thats-not-happening busybox wget -U "$x" -O 1.htm $y firefox ./1.htm

> busybox wget -U $x -O 1.htm $y

There's no way that could work. $x expands to multiple arguments.

Re: Investors expect AI use to soar. That's not happening

#14

Post by hintymad »

What is the definition of "soaring"? The charts in the article showed that the percentage of the companies that adopt AI for automation has increase 3X. At least 40% of the companies pay for GenAI, and at least 10% of the employees use GenAI daily. Combined with the fact that the companies like OpenAI and Anthronpic frequently run out of capacity, how is the AI use not soaring?

Re: Investors expect AI use to soar. That's not happening

#17

Post by outside1234 »

hintymad wrote: post #14

What is the definition of "soaring"? The charts in the article showed that the percentage of the companies that adopt AI for automation has increase 3X. At least 40% of the companies pay for GenAI, and at least 10% of the employees use GenAI daily. Combined with the fact that the companies like OpenAI and Anthronpic frequently run out of capacity, how is the AI use not soaring?

Those two sets of facts can be true at the same time.

40% of companies and 10% of employees can be using AI daily, but just for a small amount of tasks, and that usage can be leveling off.

At the same time, AI can be so inefficient that servicing this small amount of usage is running providers out of capacity.

This is a bad combination because it points to the economic instability of the current system. There isn't enough value to drive higher usage and/or higher prices and even if there was, the current costs are exponentially higher.

Re: Investors expect AI use to soar. That's not happening

#18

Post by venturecruelty »

david927 wrote: post #4

I watched the Google interview with Ilya yesterday and this came up. There's a large disconnect between the evals and the real-world performance, and he admitted that the evals are targeted. There was a storm of hype the last couple weeks for Gemini 3 and everyone, correctly, rolled their eyes. Investors are demanding a return and it's not happening. They're just going to have to face reality at some point.

Unfortunately, investors facing reality means homelessness for the rest of us. Maybe the real treasure was the billions of dollars we made along the way. :)

Re: Investors expect AI use to soar. That's not happening

#19

Post by bossyTeacher »

As soon as every big corp started stuffing their UIs with AI buttons, we all knew it was investors pushing for AI use to go sky high without a care for the nuances of the current state of AI. The reality is that AI usage isn't as impactful as it was promised. Where is the productivity increase in being able to generate a picture via some prompt? When deep research could contain hallucinated text or references, where is the productivity increase? It is undeniable that these tools have uses but when you look at all the investment made into this tech, the outcomes are not great.
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