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Now it's official - Gartner claims Generative AI has reached the peak of hype cycle - VC Cafe

Aug 16, 2023 - news.bensbites.co
Generative AI startups have secured $14.1B in the first half of 2023, more than five times the total for 2022. Despite being at the peak of Gartner's hype cycle for emerging technologies, the adoption of generative AI has been faster than many other technologies, with a forecasted climb to 77.8 million users over the next few years. Amazon CEO Andy Jassy revealed that every team within the company is actively working on generative AI projects, emphasizing its importance and significant investment.

However, reaching peak hype means that expectations are at a maximum, and there are major uncertainties in adoption due to security, copyright/training data, inaccuracy/model hallucinations, data privacy, and pending regulation. According to a McKinsey survey, 79% of respondents have had some exposure to generative AI, but many organizations are reluctant to embrace it at scale, with only 21% having policies about using it at work. The Gartner report also highlights other emerging technologies that will present benefits for early adopters in the next 10 years.

Key takeaways:

  • Generative AI startups secured $14.1B in the first half of 2023, and the technology is at the peak of Gartner's hype cycle for emerging technologies in 2023.
  • Despite the hype, the adoption of generative AI has been faster than many other technologies, with a forecasted climb to 77.8 million users over the next couple of years.
  • There are major uncertainties in adoption due to issues such as security, copyright/training data, inaccuracy/model hallucinations, data privacy, and pending regulation.
  • Other emerging technologies that will present benefits for early adopters in the next 10 years include Emergent AI, Developer Experience (devx), Pervasive Cloud, and Human-centric security and privacy.
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