If you want to know whether artificial intelligence is a gigantic economic bubble, don’t just take pundits’ word for it. Major investors are now moving their money to try to protect themselves from the AI bubble popping.
For an industry that we’re told is central to our collective future, the artificial intelligence (AI) industry increasingly seems to be built on a combination of artificially inflated hopes and bad accounting.
The industry’s critics have been raising concerns about its finances for a while: the fact that most of its flagship firms are grossly unprofitable, that they’ve had to jack up their prices to try break even (leading their business customers to pump the brakes on using their products), or that many of the eye-popping investment announcements that are meant to show demand for AI is strong have actually been circular financing — meaning different AI firms cycling money to and from each other.
But none of it has seemed to slow the industry’s boom or the relentless hype machine behind it. Until now, anyway. It used to be that you mostly heard concerns about the industry’s underlying economics in newspapers, blogs, social media posts, and podcasts, and that those concerns went completely unreflected in the markets. But these concerns seem now to have finally bled over into investors’ thinking.
Not just wall street, some of the pro-slop people in my work are getting increasingly desperate and unhinged.
They formed an 'AI native team' to develop 'groundbreaking new applications' more rapidly than our dumb old software development teams are doing even with AI tools available.
The logic: Obviously software development skills just make the developers too opinionated and they stand in the way of AI.
The problem: After 6 months, every single vibed up slop project has failed to get through QA, and the developers can't get AI to address the issues QA is reporting (similar stuff as people have been reporting with the slop-clones of Office and Photoshop, UI elements that fail to do anything despite looking like they should, the software doing one thing when it was asked to do another).
The proposed solution emailed out: QA obviously is a problem getting in the way of the slop the customers clearly want to pay for, so we should consider skipping QA and working with the customers instead to fix it. I'm hoping this is the line that executives won't cross, most of them have been chewed out by customers enough over more mundane fuckups that they could see what a shitstorm it would be to skip the only thing protecting us from shit.

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