The AI industry is experiencing a dose of reality after years of overpromising and sky-high expectations. OpenAI's GPT-5, for instance, was launched with significant fanfare but received a lukewarm response, with many feeling it didn't live up to the hype. This reality check is partly due to the incremental nature of recent AI advancements, which are bringing smaller, yet still valuable, improvements rather than groundbreaking leaps.
A recent study by the Massachusetts Institute of Technology claimed that just 5% of companies have managed to convert AI into actual revenue. Despite this, nearly 70% of companies are already using generative AI in various applications, such as customer service automation, content generation, and predictive analytics. Companies like GitHub Copilot are generating serious revenue, while open-source models like Llama are being downloaded hundreds of millions of times.
Some businesses, like Klarna, have saved millions by automating customer interactions. As AI becomes more mainstream, expectations will continue to be tempered by reality, leading to a more sustainable approach to AI development. Expect AI to continue improving, but at a more measured pace, with a focus on practical applications that deliver tangible benefits.
