Gartner is an influential researcher and commentator on tech investment and development.
In a recent paper, it termed generative AI "overhyped." While some, perhaps many, venture investors may take umbrage, Gartner is neither the first to make this observation, nor are they belittling generative AI's potential impact. What they are sharing, instead, is a reality well-known to experienced investors: that the early - and often big - money is likely to reap most of the benefits from generative AI, meaning that those trying to jump on that bandwagon now are unlikely to realize returns of similar magnitude, if any. While frustrating both to late investors and to those hoping to benefit from their willingness to overpay, this is a pattern well known and frequently repeated in tech over the past 25 years. JL
Alvin Cabral reports in N Business :
Investors put $4.2 billion into generative AI start-ups in 2021 and 2022 through 215 deals after 2019.Globally, AI investments are projected to hit $200 billion by 2025. (But) US research firm Gartner has termed generative AI overhyped and positioned it at the peak of “inflated expectations” for emerging technology in 2023. Gartner defines “transformational benefits” as “enabling
new ways of doing business across industries that will result in major
shifts in industry dynamics”. Generative AI is expected to deliver these benefits
within two to five years before plateauing, Gartner said. AI simulation, causal AI and federated machine learning (also) enhance digital customer experiences, business decision
making and sustainable competitive differentiation.