The podcast dives into the profitability of generative AI, questioning whether the hype can translate into real returns. It explores the billions invested in AI since the rise of ChatGPT and evaluates efforts to find a so-called 'killer app.' The discussion also highlights challenges faced by users and examines if leading tech firms in Silicon Valley might be miscalculating their AI strategies. Tune in to uncover insights on the future of AI and its potential financial impact.
The immense investments in generative AI raise concerns about its practical utility and the actual financial returns it can generate.
The debate around AI's profitability highlights uncertainties in its business models, hinting at a speculative bubble rather than sustainable innovation.
Deep dives
The Profitability of AI
The podcast delves into the crucial question of whether artificial intelligence can become a profitable venture or if it is simply a speculative bubble. Despite significant investments pouring into AI technologies, there is skepticism about their practical utility and financial returns. Many tools released in the AI market often fail to see widespread adoption, as potential users do not engage with them effectively. This highlights the ongoing debate about the actual value that AI can deliver to businesses and consumers alike.
Speculative Business Models
The discussion emphasizes the speculative nature of business models within the AI sector, which is characterized by uncertainty about long-term viability. The rapid introduction of new AI tools has not necessarily translated into consistent use or profitability, leading to questions about the sustainability of these investments. Observers note that many companies are merely cashing in on hype rather than developing technologies that meet tangible market needs. This raises concerns among investors regarding whether current trends represent genuine innovation or merely short-lived excitement.
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Exploring the Profitability of Artificial Intelligence
Generative AI is impressive, but can it be profitable? Since the emergence of ChatGPT in 2022, Silicon Valley investors and tech giants have poured billions into developing generative AI models and tools. But when will it start generating returns? The FT’s artificial intelligence editor Madhumita Murgia investigates efforts to develop a ‘killer app’ for AI, the use of AI in the workplace, and asks if some of the most highly valued AI companies in Silicon Valley are getting it all wrong.
This season of Tech Tonic is presented by Madhumita Murgia, and produced by Josh Gabert-Doyon. Edwin Lane is the senior producer and Manuela Saragosa is the executive producer. Sound design by Breen Turner, Samantha Giovinco and Joe Salcedo, with original music from Metaphor Music. The FT’s head of audio is Cheryl Brumley.