A.I. has always been an industry based on novelty. the promise of ChatGPT on its website has always been something along the lines of "find creative inspiration, learn something new." However, when it comes to the details, it has always been famously inadequate when it comes to details, (look-up A.I. hands if you want quick prove), Economically, A.I. has tried to push itself into as many markets as possible, primarily when it comes to creative endeavors such as illustration and writing. Naturally people have tried to begin enterprises relating to A.I. and the renting of their technology. However, as time has gone on, and as the novelty of the technology has faded, how viable is it really to open an A.I. centered firm.
The market has been tough on everyone. According to the Bureau of Labor Statistics the consumer price index has index has increased by 0.55 %. $100 dollars in the January of 2000 will get you the same as $185.03 in the March of 2024. This has naturally has affected the A.I. Business such as Stability A.I. or Anthropic have struggled to meet the gap between their expenses and their profits. The big names in the industry, ChatGPT or similar products, have failed to find a viable strategy to raise funds so that they make-up for the costs in developing their technologies. Quite simply, the technology is just more expensive than methods already in use. Even big tech companies like Google or Meta (previously known as Facebook) have struggled to make these technologies work.
In addition, all around the world A.I. regulation is on the rise. It always takes time for law to catch-up with progress, and we have reached that point. In the European Union, since last year regulations have been put in place to protect and control the A.I. market. Bio-metrics, emotional reading, and predictive policing have all been restricted under the Parliament's law. There are exceptions made for edge cases and emergencies, but otherwise A.I. seems to be something to not be liberally used in the Union. In addition, transparency requirements and measures have been made obligatory for any company seeking to enter the field. The US has also made moves to push towards more regulation when it comes to A.I. Even as the USA has allowed for a relatively free market for A.I. domestically, it has made pushes in the UN assembly to increase global regulation for A.I., which may be indicative of a long term agenda. All in all, it seems it will only become more and more difficult to enter the field.
Ultimately, it has become difficult to be in A.I. these days. It is easy to see the marketing and notability of companies like OpenAI, however if you are going into the industry it is important to know what is happening within it. A.I. is going to change the world, but the more things changes the more they will stay the same. The reason why these facts are assessed is so that one can make the best decision on what to invest in or what to make into your livelihood. A.I. is here to stay, so we need to learn both how it will change the world, and how it will not.
Sources
https://www.nytimes.com/2024/04/29/technology/ai-startups-financial-reality.html?login=google&auth=login-google
https://www.bls.gov/eag/eag.us.htm
https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=100.00&year1=200001&year2=202403
https://www.europarl.europa.eu/news/en/press-room/20240308IPR19015/artificial-intelligence-act-meps-adopt-landmark-law
https://www.bloomberg.com/news/articles/2024-03-14/us-pushes-for-global-ai-rules-at-un-as-regulations-lag-behind
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