Generative AI Hype: Reaching its Peak?

Since October 2023, many exaggerated claims surrounding Generative AI have been questioned, particularly the assertion that it will dramatically boost labor productivity across most occupations. The author believes investor hype around Generative AI is nearing its peak, evidenced by NVIDIA's falling stock price. While LLMs have enabled real process innovations, such as improved efficiency in software development and customer support, their impact may be overstated. In customer support, chatbots handle routine issues, but this could lead to a degraded user experience. In software development, LLMs are replacing less experienced developers, potentially limiting the future supply of experienced developers. Furthermore, the release of DeepSeek raises questions about GPU demand. The author suggests that political influence and scam bots may be the sustainable killer app for this technology.