Generative AI May Face ‘Reality Check’ in 2024 as ChatGPT Hype Fades

Major tech brands like Microsoft, Google, Meta and Amazon are investing heavily in AI products. From OpenAI’s ChatGPT to Google’s Bard AI, we’ve seen several AI-enabled products and solutions in just a few months. However, a new report suggests that AI excitement is expected to meet reality next year.

According to analyst firm CCS Insight, the hype for this technology will wane next year as generative AI “gets a cold shower in 2024.”

“We’re big proponents of AI, we think it’s going to have a huge impact on the economy, we think it’s going to have a huge impact on society as a whole, we think it’s great for productivity. But in 2023, the hype around generative AI has been so huge that we think it’s overhyped, and there are many hurdles to overcome to bring it to market, Ben Wood, principal analyst at CCS Insight, told CNBC.

According to the report, generative AI models such as OpenAI’s ChatGPT, Google Bard, Anthropic’s Claude and Synthesia rely on massive amounts of computing power to run complex mathematical models that help them figure out what answers to come up with in response to user prompts. .

“Companies need to acquire powerful chips to run AI applications. In the case of generative AI, it’s often advanced graphics processing units, or GPUs, designed by U.S. semiconductor giant Nvidia, which companies and small developers alike turn to to perform AI workloads,” CNBC reported.

According to CCS Insight, a growing number of companies, including Amazon, Google, Alibaba, Meta, and reportedly OpenAI, are designing their own special AI chips to run these AI programs.

“The cost of just deploying and maintaining generative AI is huge. And it’s very good that these massive companies are doing it. But for many organizations, for many developers, it’s just going to be too expensive,” Wood told CNBC.