AI Hype Meets Reality Check As Investors Seek Returns From Costly Bets
-
Investors have sky-high expectations for AI returns in 2024, but early results are underwhelming so far (e.g. Microsoft and Alphabet's earnings)
-
Adoption of tools like Microsoft's Copilot will indicate if AI can deliver on its promises of transforming business productivity
-
AI companies are burning through cash with no clear path yet to profitability (OpenAI spending $2 billion a year)
-
VCs have tightened purse strings for funding AI startups, expecting fewer exits amid antitrust concerns
-
If bad publicity and minimal productivity gains continue, disillusionment with AI could set in despite high hopes initially