Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Generative AI Still Needs to Prove Its Usefulness

Dec 23, 2024 - wired.com
Generative AI gained significant attention with the release of OpenAI's ChatGPT in November 2022, quickly attracting millions of users and making OpenAI's CEO, Sam Altman, a well-known figure. Despite the initial excitement and widespread adoption efforts by various companies, generative AI systems have faced criticism for their limitations. These systems, described as "autocomplete on steroids," excel at generating plausible-sounding text but struggle with deeper understanding and fact-checking, leading to issues like hallucinations and errors. As a result, the technology has been seen as impressive in demonstrations but lacking as a reliable product.

By 2024, the initial hype around AI has given way to disillusionment, with doubts about the profitability and sustainability of generative AI. OpenAI is projected to face significant operating losses, and its high valuation is questioned due to the lack of profits. Many companies are producing similar models without significant improvements over GPT-4, leading to a lack of competitive advantage or "moat." This has resulted in price cuts and free offerings from competitors like Meta. Without a major breakthrough, such as a significantly improved GPT-5, the enthusiasm for OpenAI and generative AI as a whole may decline, potentially leading to a downturn in the field.

Key takeaways:

```html
  • Generative AI, exemplified by OpenAI's ChatGPT, gained massive popularity in late 2022, but its effectiveness and reliability are questioned due to issues like "hallucination."
  • The initial hype surrounding generative AI has led to disillusionment in 2024, with OpenAI facing significant financial losses and unmet high expectations.
  • Many companies are producing similar language models, resulting in a lack of competitive advantage or "moat," leading to dwindling profits and price cuts.
  • OpenAI's future success hinges on releasing a significantly improved model, such as GPT-5, by the end of 2025 to maintain its leadership and industry enthusiasm.
```
View Full Article

Comments (0)

Be the first to comment!