this post was submitted on 22 Jun 2024
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[–] EnderMB@lemmy.world 11 points 1 month ago (36 children)

All of big tech is really worried about this.

  • Apple is worried about its own science output, with many of their office heavily employing data scientists. A lot of people slate Siri, but Apple's scientists put out a lot of solid research.
  • Amazon is plugging GenAI into practically everything to appease their execs, because it's the only way to get funding. Moonshot ideas are dead, and all that remains is layoffs, PIP, and pumping AI into shit where it doesn't belong to make shareholders happy. The innovation died, and AI replaced it.
  • Google has let AI divisions take over both search and big parts of ads. Both are reporting worse experiences for users, but don't worry, any engineer worth anything was laid off and there are no opportunities in other divisions for you either. If there are, they probably got offshored...
  • Meta is struggling a lot less, probably because they were smart enough to lay off in one go, but they're still plugging AI shite in places no one asked for it, with many divisions now severely down in headcount.

If the AI boom is a dud, I can see many of these companies reducing their output further. If someone comes along and competes in their primary offering, there's a real concern that they'll lose ground in ways that were unthinkable mere years ago. Someone could legitimately challenge Google on search right now, and someone could build a cheap shop that doesn't sell Chinese tat and uses local suppliers to compete with Amazon. Tech really shat the bed during the last economic downturn.

[–] Holzkohlen@feddit.de -1 points 1 month ago (3 children)

And people will still say AI isn't a bubble.

[–] Wxnzxn@lemmy.ml 1 points 1 month ago (1 children)

I think it will hinge on one thing: Will AI provide an experience that is maybe worse, but still sufficient to keep the market share, at lower cost than putting in the proper effort? If so, it might still become a tragic "success"-story.

[–] aphlamingphoenix@lemm.ee 0 points 1 month ago

It's very, very costly, both but the hardware and the electricity it takes to run it. There may be a bit of sunk cost fallacy at play for some, especially the execs who are calling for AI Everything, but in the end, in AI doesn't generate enough increase in revenue to offset its operational costs, even those execs will bow out. I think the economics of AI will cause the bubble to burst because end users aren't going to pay money for a service that does a mediocre job at most things but costs more.

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