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What happened
A recent report from MIT Media Lab indicates that 95% of investments in generative AI have yielded no returns, raising skepticism about AI's scalability. The disappointing launch of OpenAI's GPT-5 has contributed to concerns over slowing progress in AI. Gartner suggests that generative AI may be entering the 'trough of disillusionment' phase in its hype cycle.
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Key insights
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1
High Investment, Low Returns
95% of generative AI investments have not produced returns.
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2
Skepticism on AI Scalability
Concerns are growing about the ability of AI to deliver results at scale.
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3
GPT-5 Launch Disappointment
The underwhelming launch of GPT-5 has fueled doubts about AI progress.
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4
Hype Cycle Phase
Gartner indicates generative AI is in the 'trough of disillusionment'.
Takeaways
The current landscape suggests a critical reassessment of generative AI's potential and investment strategies.