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

economist.com

21–30 of 71 posts

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

#21
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.

did you forget up is down and down is up?

Anti-matter

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

#22
post #13

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.

[dead]

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

#23
> A survey by Dayforce, a software firm, finds that while 87% of executives use ai on the job, just 57% of managers and 27% of employees do. Perhaps middle managers set up ai initiatives to satisfy their superiors’ demands, only to wind them down quietly at a later date.

The article quietly ignored two better explanations: the day to day work of executives can be automated more easily (Manna vibes) and/or the execs have a vested interest in AI succeeding so they can cut headcount so they are evangelists for AI.

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

#24
post #15
post #10

It will probably take decades for machine learning to transform the way we live and work.

Yes, just like computers and later the internet. The technology always preceeds the cultural/economic changes by decades.

And sometimes it disappears entirely for a while because either culturally, the world isn't ready for it/to adapt to it, or it wasn't delivered in the right form.

Google Glass comes to mind, which died 11 years ago and XR is only just now starting to resurface.

Tablets also come to mind, pre-iPad, they more or less failed to achieve any meaningful adoption, and again sort of disappeared for a while until Apple released the iPad.

Then you have Segway as an example of innovation failure which never really returned in the same form like the others, and instead now we have e-scooters and e-bikes which fit better into existing infrastructure and cultural attitudes.

It's quite possible LLMs are just like those other examples, and the current form is not the going to be the successful form the technology takes.

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

#25
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.

You mean the last 5 year plan? VCs seem to lack so much imagination and are so prone to group think. That we effectively have a top down command economy with 5 year plans in tech. Interestingly VR seems to punctuate every 15 year cycle.

VR -> Cloud -> Crypto -> VR -> AI -> ?

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

#26
post #13

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.

Replace double quotes with single quotes then

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

#27
Investors don't "expect" AI to soar, they NEED AI to soar. Why are we still engaging in this absolutely ridiculous kabuki theatre? This entire cracking edifice is propped up by fictitious capital and pipe dreams, and the music is about to stop. Turns out, you can't charge $20 a month for something no one wants and expect to get a trillion dollars out of it. Shocker!

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

#28
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. :)

My close friends got showered so much with money poured down by investors that it is indecent.

Just because they happened to be in the right place, at the right time, and idling, gets paid 10M USD+ due to stock options vetting.

Sounds like crypto^2; money is spread completely irrationally and unfairly (lucky folks who launched a ponzi get rewarded instead of jailed) and completely disconnected from actual efforts.

In the long-term this can only lead to a very unhealthy society.

Good that we won't need money anymore, thanks to AGI right ?

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

#30

> A survey by Dayforce, a software firm, finds that while 87% of executives use ai on the job, just 57% of managers and 27% of employees do. Perhaps middle managers set up ai initiatives to satisfy their superiors’ demands, only to wind them down quietly at a later date. The article quietly ignored two better explanations: the day to day work of executives can be automated more easily (Manna vibes) and/or the execs h…

I think it's that employees are afraid to say they use AI and executives are eager to say they use AI. Managers of course occupy both worlds.
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