After a long period of raising waves, the hype around artificial intelligence appears to have taken a turn. These days, we see more and more media headlines dominated by talk of how the “AI bubble” is close to bursting. Skeptical moods are growing in the market, as many companies wonder if this technology will ultimately be able to justify the massive investments that have already gone into it.
But personally, I think there’s a better question to consider. Namely, what happens after the hype? How will the trajectory of AI development change after the media interest and investor enthusiasm cool down? AI is touted as a transformative technology, but will its potential be enough to survive and prosper?
Well, let’s take a look.
Media Frenzy Is a Double-Edged Sword
First of all, it should be mentioned that the massive spotlight shed on AI by the media over the past couple of years has been a mixed blessing for the industry.
On the one hand, the surge of interest has opened many doors and helped projects draw in investments that would have otherwise remained out of reach. Developing cutting-edge technologies is impossible without significant financial backing and skilled professionals. Both of these things became easier to come by as the hype attracted new money and talent to this field.
However, that same hype has also led to what is called “AI-washing,” where companies use the label of AI to attract funding and attention. But in reality, such companies barely use the technology or contribute to its advancement. These exaggerations (and, at times, outright lies) have often led to betrayed expectations, damaging the trust between investors and the broader AI community.
The Decline in AI’s Media Popularity Is Hardly the End
There is this thing called “Gartner Hype Cycle,” a concept that tracks the rise and fall of new technological trends. According to it, after the peak of inflated expectations is reached, there is typically a steep decline as the interest and excitement wear off. And according to research published by Gartner in June 2024, AI technology has already reached the peak of expectations. Which means, we are headed for the downturn next.
It’s hard to say what exactly could trigger that downturn, but whatever the cause, it won’t mean that the technology itself has become less promising. It just means that the word “AI” will no longer be used left and right with no reason. The problem with the AI bubble isn’t the technology itself. It’s just that too many projects labeled themselves as “AI-powered” to lure in investors, even though many of them had little to do with true AI.
So when the bubble bursts, it won’t spell the end for AI. If anything, the technology will only continue to develop, given that it has already proven its value in a number of sectors, such as e-commerce, healthcare, banking, and more. Real AI products can offer tangible benefits and will continue to generate profits even if less viable AI projects fall by the wayside.
Past Tech Bubbles Paint a Positive Picture
Strictly speaking, it’s not like the current trajectory of AI is something unique for the tech market. We have seen similar bubbles before. Take 3D printing, for example, which was one of the biggest buzzwords in 2015. While the hype has gone down in the years afterwards, the technology itself continued to advance at an impressive pace. In 2023, the market was valued at over $20B and is expected to grow further.
It is entirely possible that AI will follow a similar path. The milestones achieved so far, especially in fields like programming, are too significant to be dismissed as mere hype. Matt Garman, head of Amazon Web Services, predicts that AI could replace most developers in a couple of years, and there is some truth to that. AI systems are already coding at the level of junior or even mid-level developers, but it’s not widely talked about because some in the tech community are reluctant to accept this change.
That said, the progress itself is undeniable. Even if the hype-driven investments dry up, projects that deliver real value will continue to attract funding. AI in banking compliance is a prime example of a field where proper AI application can save a lot of resources. Smaller banks, in particular, which cannot afford large compliance teams, will find AI solutions tremendously helpful and worth the investment.
Beyond the Hype, There Still Lies a Promising Future
To sum up, I would say that the future of AI after the hype will remain optimistic. Media attention is bound to come and go — that’s just how these things work. But rather than signaling the end of AI, I am of the opinion that the post-hype phase will lead to a period of stabilization. The technology will continue to mature and find its footing in practical applications, this time attracting attention for the right reasons.
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