Despite unbridled optimism and massive spending, generative AI is still a solution looking for a problem.
The biggest technology firms in the world posted almost universally disappointing second quarter earnings for 2024. Though there were a couple of exceptions, companies that have attached their wagons to the generative AI train appear to be losing ground with mainstream consumers and enterprise clients alike.
All indications point to the ouroboros problem — often depicted as a snake eating itself — where generative AI tools such as chatbots can only become so useful before increasing the amount of data and processing power they use produces diminishing returns.
The same appears to be true when it comes to speculative spending on AI technologies. If Q2 2024 is any indication, the global AI sector may have problems that money can solve.
