{"id":2323589,"date":"2024-08-13T07:30:00","date_gmt":"2024-08-13T11:30:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/all-too-predictably-reality-is-puncturing-the-ai-hype-bubble\/"},"modified":"2024-08-13T07:38:54","modified_gmt":"2024-08-13T11:38:54","slug":"all-too-predictably-reality-is-puncturing-the-ai-hype-bubble","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/all-too-predictably-reality-is-puncturing-the-ai-hype-bubble\/","title":{"rendered":"All Too Predictably, Reality Is Puncturing The AI Hype Bubble\u00a0"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fall-too-predictably-reality-is-puncturing-the-ai-hype-bubble%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2323589&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the\u200d current\u200d state and implications of the AI bubble, \u2063highlighting \u200dits potential bursting following exaggerated\u2063 expectations and massive investments.\u200c It notes that a significant portion of a\u2062 recent\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-stock-market-crash-dont-try-to-understand-it-feel-it\/\" title=\"A Stock Market Crash? Don\u2019t Try to Understand It, Feel It\">market crash<\/a> affected <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">technology companies<\/a>, \u2063particularly Nvidia, which experienced a\u200b staggering \u2062loss in valuation. The causes of\u200d the downturn include \u200ddisillusionment from consumers, impatience from investors,\u2062 and the reality that many AI businesses have failed to meet their \u200blofty\u2062 promises.\u2064 Additionally, advancements in AI are reportedly stalling due to high costs, energy consumption, and\u200d a \u200black of fresh training data, \u200bas the internet is increasingly \u200dpopulated by\u200d AI-generated content. <\/p>\n<p>The article critiques the widespread misunderstanding of AI, emphasizing that it cannot replicate \u2062human intelligence despite claims from proponents \u200bwho envision a \u2064future where AI takes over \u200ceducational and professional roles. \u200dInstead, it\u200b asserts that\u200b AI should be viewed\u200d as \u2064a powerful tool rather than a replacement for human capabilities, paralleling tools like <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/google-pauses-woke-feature-that-suggests-inclusive-language-to-users\/\" title=\"Google Pauses \u2018Woke\u2019 Feature That Suggests \u2018Inclusive Language\u2019 To Users\">spell check<\/a> rather than embodying a conscious entity. Consequently, the pursuit of profit through AI has \u2064proven problematic due\u200b to these misconceptions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>After so much hype and trillions of dollars of investment, the AI bubble seems like it might finally be <a href=\"https:\/\/www.vox.com\/today-explained-newsletter\/365292\/ai-bubble-nvidia-chatgpt-stock-market-crash\" target=\"_blank\" rel=\"noreferrer noopener\">bursting<\/a>. Much of the <a href=\"https:\/\/www.reuters.com\/markets\/us\/global-markets-milestones-graphic-2024-08-05\/\" target=\"_blank\" rel=\"noreferrer noopener\">market crash<\/a> that happened last Monday was <a href=\"https:\/\/x.com\/MrEwanMorrison\/status\/1820477202754093364\" target=\"_blank\" rel=\"noreferrer noopener\">concentrated<\/a> among technology companies, all of which are deeply invested in AI. The biggest loser was the famed chip company Nvidia, which, according to writer <a href=\"https:\/\/www.msn.com\/en-us\/money\/technology\/the-ai-bubble-has-burst-heres-how-we-know\/ar-AA1ojvtQ\" target=\"_blank\" rel=\"noreferrer noopener\">Chis Taylor<\/a>, &ldquo;lost a trillion dollars of valuation, 30% of the total, since its 2024 high.<\/p>\n<p>Taylor goes on to list the reasons for this downturn: excessive hype from AI gurus like Sam Altman, burnout from consumers who are now <a href=\"https:\/\/futurism.com\/the-byte\/study-consumers-turned-off-products-ai\" target=\"_blank\" rel=\"noreferrer noopener\">turned off<\/a> by products using AI, and impatient investors like Goldman Sachs wanting a quicker return on their investment. So, like most bubbles, AI businesses overpromised and underdelivered, causing the market to correct itself.<\/p>\n<p>Unfortunately, it doesn&rsquo;t end there. AI technology seems to be hitting a wall in its advancement. As many people have observed, the AI data servers <a href=\"https:\/\/www.forbes.com\/sites\/arielcohen\/2024\/05\/23\/ai-is-pushing-the-world-towards-an-energy-crisis\/%23:~:text=A%2520rack%2520of%2520traditional%2520servers,7.3%2520times%2520of%2520energy%2520annually.\" target=\"_blank\" rel=\"noreferrer noopener\">suck up<\/a> colossal amounts of energy, putting a huge strain on electrical grids. They also require equally colossal amounts of <a href=\"https:\/\/www.businessinsider.com\/how-much-chatgpt-costs-openai-to-run-estimate-report-2023-4\" target=\"_blank\" rel=\"noreferrer noopener\">capital<\/a> (running in the billions of dollars) and continuous funding &mdash; for reference, ChatGPT is estimated to cost OpenAI $700,000 a day to operate.<\/p>\n<p>Worse still, Taylor explains that AI programs &ldquo;have run out of stuff to train on, and the more they are trained on &lsquo;the internet,&rsquo; the more the internet contains a body of work written by AI &mdash; degrading the product in question.&rdquo; Originally, a Large Language Model (LLM) like ChatGPT could review the vast quantity of human-made content across the internet and take that data to produce a unique essay that would meet the parameters of its users. But now, there is so much AI-generated content online that any essay that the LLM produces will become increasingly <a href=\"https:\/\/www.scientificamerican.com\/article\/ai-generated-data-can-poison-future-ai-models\/\" target=\"_blank\" rel=\"noreferrer noopener\">derivative, defective, and incomprehensible<\/a>. Garbage in, garbage out.<\/p>\n<p>At the root of all these issues is a profound collective misunderstanding about AI. The problem is so obvious that it&rsquo;s difficult to see, especially for the high IQ geniuses in Silicon Valley: artificial intelligence is not human intelligence. For too long, technologists have spoken about AI like it&rsquo;s a synthetic brain that mirrors the functions of human brains. As such, they describe computers learning, communicating, and performing administrative tasks as though they were conscious workers.<\/p>\n<p>And, if one listens to <a href=\"https:\/\/a16z.com\/the-techno-optimist-manifesto\/\" target=\"_blank\" rel=\"noreferrer noopener\">Techno-Optimists<\/a> like Marc Andreessen and Amjad Massad, AI can even do the work of life coaches and teachers. Andreessen <a href=\"https:\/\/a16z.com\/ai-will-save-the-world\/\" target=\"_blank\" rel=\"noreferrer noopener\">predicted<\/a> that &ldquo;Every child will have an AI tutor that is infinitely patient, infinitely compassionate, infinitely knowledgeable, infinitely helpful. The AI tutor will be by each child&rsquo;s side every step of their development, helping them maximize their potential with the machine version of infinite love.&rdquo; Not only does AI understand <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-conservatism-must-conserve\/\" title=\"What Conservatism Must Conserve\">human beings<\/a>, but it understands them infinitely better than <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-a-healthy-society-requires-honoring-your-father-and-mother\/\" title=\"Why A Healthy Society Requires Honoring Your Father And Mother\">human beings understand<\/a> themselves and one another.<\/p>\n<p>Coupled with this misguided personalizing of AI is the misconception that human minds are simply organic computers with deficient programming. The soul is commonly <a href=\"https:\/\/theimaginativeconservative.org\/2018\/05\/black-mirror-soul-auguste-meyrat.html\" target=\"_blank\" rel=\"noreferrer noopener\">reduced<\/a> to bits of data that can be downloaded or uploaded. No doubt, Andreessen imagines students sitting at the feet of their robot instructors quietly learning from them in the same way a computer installs a new application, except they don&rsquo;t have a loading bar hovering above their heads.<\/p>\n<p>Because of these flawed analogies, it was assumed by many that AI would replace most white-collar workers and eventually assume control of most organizations &mdash; after all, why have fallible mortals at the helm when one could have an infinitely wise and competent AI overlord handling everything? The real challenge, according to experts, was dealing with the displaced, unemployed masses who would inevitably become obsolete and making sure that the robot overlords remain kind to human beings. In this regard, the only real difference between the optimist and pessimist was that one believed that AI would create a utopia while the other believed it would do the opposite.<\/p>\n<p>Of course, neither of these possibilities are true because AI doesn&rsquo;t have the capacity to replace people, and it never did. At best, it is a powerful tool that has more in common with a spell\/grammar check application or a search engine than it does with even the dumbest, most unimaginative human being.<\/p>\n<p>This is why using AI to make money has been such a failure. Employers thought they could have an AI program to do the work of their employees more efficiently at a fraction of the price. However, the inputs and accompanying training required complete even the most basic tasks is <a href=\"https:\/\/gigaom.com\/2023\/11\/28\/seven-reasons-why-generative-ai-will-fall-short-in-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">overwhelming<\/a>. Rather than learn how to program complex operations on a robot, most managers would be better off simply telling their workers what to do and trusting in their ability to do it. It also makes for a happier workplace.<\/p>\n<p>The same goes for using AI to <a href=\"https:\/\/www.nytimes.com\/2024\/05\/18\/opinion\/artificial-intelligence-loneliness.html\" target=\"_blank\" rel=\"noreferrer noopener\">cure<\/a> the current loneliness epidemic. Perhaps a few desperate souls might not mind the company of an AI companion, but this will only feed the very worst aspects of those struggling to form meaningful relationships. Instead of serving as practice for real interaction, it reinforces the anti-social habits that make a person lonely in the first place. Rather than making sacrifices and developing empathy, the lonely user is indulging delusions and cultivating extreme narcissism.<\/p>\n<p>Ironically, the greatest benefit of AI is demonstrating just how special and irreplaceable human beings are. Consequently, its financial and cultural success will depend on whether it can raise human potential by becoming a helpful tool or do the opposite by becoming an expensive burden.<\/p>\n<hr>\n<p>      Auguste Meyrat is an English teacher in the Dallas area. He holds an MA in humanities and an MEd in educational leadership. He is the senior editor of <a>The Everyman<\/a>  , a senior contributor to The Federalist, and has written for essays for The American Mind, The American Conservative, Religion and Liberty, Crisis Magazine, and elsewhere. Follow him on <a href=\"https:\/\/twitter.com\/MeyratAuguste\">X<\/a>.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After extensive hype and massive investments totaling trillions of dollars, the AI bubble appears to be on the verge of bursting. The recent market crash, particularly last Monday, primarily affected technology firms heavily involved in AI. Nvidia, a well-known chip manufacturer, suffered the most significant losses, with writer Chris Taylor noting that it has seen a decline of one trillion dollars in valuation\u201430% from its peak in 2024.<\/p>\n<p>Taylor attributes this downturn to several factors: excessive enthusiasm from AI advocates like Sam Altman, consumer fatigue with AI products, and impatient investors such as Goldman Sachs seeking quicker returns. As is often the case with bubbles, many AI companies have overpromised and underdelivered, leading to a necessary market correction.<\/p>\n<p>The situation is further complicated by stagnation in AI technology&#8217;s progress. Observers have pointed out that the data servers powering AI consume enormous amounts of energy, straining electrical grids. Additionally, these technologies require vast financial resources\u2014ChatGPT alone costs OpenAI an estimated $700,000 daily to operate.<\/p>\n<p>Moreover, Taylor highlights that many AI programs are running out of training material; as they increasingly rely on internet content\u2014which now includes substantial amounts generated by other AIs\u2014the quality of their outputs diminishes. Initially capable of producing unique essays based on human-created content online, Large Language Models (LLMs) like ChatGPT now face challenges due to an oversaturation of derivative material online.<\/p>\n<p>At the core of these issues lies a significant misunderstanding about what artificial intelligence truly is. This misconception is so pervasive that it often goes unnoticed\u2014even among highly intelligent individuals in Silicon Valley: artificial intelligence does not equate to human intelligence. For too long has there been talk about AI functioning like a synthetic brain mimicking human cognitive processes; thus computers are described as learning and performing tasks akin to conscious beings.<\/p>\n<p>Techno-optimists such as Marc Andreessen and Amjad Massad even suggest that AIs could take on roles traditionally held by life coaches or educators. Andreessen envisions every child having access to an infinitely patient and knowledgeable AI tutor guiding them through their development\u2014a notion implying that AIs understand humans better than we understand ourselves.<\/p>\n<p>This anthropomorphizing view leads some people to mistakenly believe human minds are merely organic computers needing better programming while reducing concepts like the soul into mere data points for download or upload purposes. Andreessen likely imagines students learning from robotic instructors much like software installations occur\u2014without any visible loading indicators.<\/p>\n<p>Due to these flawed comparisons, many assumed that AIs would replace most white-collar jobs and eventually dominate organizations entirely\u2014why rely on fallible humans when an all-knowing machine could manage everything? Experts argue this perspective overlooks real challenges: addressing job displacement for those rendered obsolete while ensuring benevolent treatment from robotic overseers toward humanity itself. In this context lies a divide between optimists who foresee utopia through advanced AIs versus pessimists who predict dystopia instead.<\/p>\n<p>However neither scenario holds true because AIs lack genuine capacity for replacing humans\u2014they never had it at all. At best they serve as powerful tools more akin to spell-check applications or search engines than even the least imaginative person alive today.<\/p>\n<p>This explains why attempts at monetizing through AIs have largely failed; employers believed they could deploy programs capable of outperforming employees at lower costs but underestimated how overwhelming input requirements would be just for basic tasks completion training needs alone! Most managers might find greater success simply directing their staff rather than trying complex robot programming efforts\u2014and happier workplaces result too!<\/p>\n<p>Similarly misguided notions extend into using AIs against loneliness epidemics; while some lonely individuals may welcome companionship from machines briefly\u2014it ultimately exacerbates negative behaviors preventing meaningful relationships formation instead! Rather than fostering empathy growth via sacrifices made during interactions\u2014the lonely user indulges delusions reinforcing anti-social tendencies leading back towards isolationism!<\/p>\n<p>Ironically enough though\u2014the greatest lesson learned thus far regarding advancements made within Artificial Intelligence showcases just how unique &amp; irreplaceable humanity truly remains! Therefore its future success hinges upon whether it can elevate human potential acting beneficially\u2014or conversely become nothing more than costly burdensome distractions hindering progress altogether! <\/p>\n<p>Auguste Meyrat teaches English near Dallas holds both MA degrees humanities &amp; educational leadership serves senior editor role The Everyman contributes regularly Federalist written essays American Mind American Conservative Religion Liberty Crisis Magazine others follow him X platform<\/p>\n","protected":false},"author":551,"featured_media":2323590,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/08\/circuit.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[14505,37971,35890,33444],"class_list":["post-2323589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","tag-ai","tag-hype-bubble","tag-reality-check","tag-technology-trends"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/08\/circuit.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2323589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/551"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2323589"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2323589\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2323590"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2323589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2323589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2323589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}