The technology research and consulting firm Gartner, which has popularized the concept of the new technology hype cycle, says that Generative AI has now passed the “Peak of Inflated Expectations,” a phase where “overenthusiasm and unrealistic projections, a flurry of well-publicized activity by technology leaders results in some successes, but more failures, as the innovation is pushed to its limits.”
Gartner’s new analysis adds to a growing chorus of voices among financial institutions and research firms that believe that while generative AI is here to stay and will provide value for many companies, generative AI companies have greatly over-promised what the technology can actually deliver, and many who invested money in it will never see a return.
“Investment in AI has reached a new high with a focus on generative AI, which, in most cases, has yet to deliver its anticipated business value,” Gartner said in its June report, Hype Cycle for Artificial Intelligence, 2024. “Generative AI (GenAI) has passed the Peak of Inflated Expectations, although hype about it continues. In 2024, more value will derive from projects based on other AI techniques, either stand-alone or in combination with GenAI, that have standardized processes to aid implementation.”