AI: The Billion-Dollar Gamble No One's Winning Yet

Dr Mark van Rijmenam, CSP -

Is AI the future of innovation, or are we pouring money into a black hole?

Recent skepticism about AI is coming from an unexpected corner — venture capitalists and investment bankers. Despite the hype, major players like Sequoia Capital are questioning AI's profitability.

David Cahn from Sequoia highlights a widening gap between AI investments and revenue, suggesting that while companies are spending heavily on AI, tangible returns are elusive. Accenture and Salesforce, both early AI adopters, report disappointing financial outcomes despite substantial AI-related investments.

Even AI frontrunner OpenAI shows mixed results, with a significant portion of its revenue from consumer subscriptions rather than enterprise sales. Goldman Sachs echoes these concerns, questioning the urgency and sustainability of AI's financial returns.

MIT economist Daron Acemoglu adds a cautionary note, suggesting the economic impact of AI might be overestimated and advocating for a more measured approach to its adoption. Are we advancing too quickly without reaping the expected benefits, and at what potential cost to our future?

Read the full article on The Ken.

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