Despite predictions from figures like Bill Gates, AI revenue and productivity gains have yet to materialize significantly. The AI industry's performance is not matching the high expectations set by boosters.
Even with substantial investments, AI's impact on revenue streams remains limited. Early applications like IBM's Watson faced setbacks, failing to deliver on initial promises in fields like cancer treatment.
Microsoft CEO Satya Nadella acknowledges that AI supply is outpacing demand. Companies are slowing down data center construction, signaling a potential cooling in AI infrastructure investments.
While AI shows promise in tasks like generating text and drafting documents, its reliability remains a concern. The costs of errors in critical applications like medical advice hinder widespread adoption and profitability.
Industry-wide AI revenues are estimated between $30 to $35 billion annually. This figure may not justify the massive capital spending on data centers.
Experts warn of a potential AI bubble, drawing parallels to the dot-com era. Smaller AI companies are particularly vulnerable if investor enthusiasm wanes.