Problem with AI

AI stocks are apparently not doing well as expected. It could be that people are seeing the limits of its current usefulness, seeing through the smoke and mirrors a little, and so losing faith in it.

For me it comes down to the most basic problem of any kind of automation. If it’s not 100% perfect 100% all the time it needs oversight, which means maintaining the critical functions needed in the first place. If there is a margin of error, it becomes a task in itself to identify and correct.

And in the case of generative AI, because the creative process is automated, there are compromises with style, context and so on. These compromises are much less worth it when the output itself can needs constant monitoring.

It will be a temporary setback for the AI industry. It will keep getting better – but under the current paradigms the above problems will remain.