The AI Hype Train: Why It’s Both a Grift and a Game-Changer

Artificial Intelligence (AI) has become the latest buzzword in tech circles, much like blockchain, cryptocurrencies, NFTs, the metaverse, big data, VR, and the Internet of Things (IoT) once were. This trend often overshadows the reality of what AI, particularly large language models (LLMs), can actually do. The term “AI” is frequently thrown around to capture attention and investment, leading to a situation where it feels more like a grift than a genuine technological breakthrough. However, this doesn’t mean that AI, especially LLMs, lacks utility. On the contrary, when understood and applied correctly, AI can be a highly useful tool among many others.

The Buzzword Phenomenon

In recent years, we’ve seen a pattern where certain technologies gain massive hype and are marketed as solutions to almost every problem. Remember how blockchain was going to revolutionize everything from banking to healthcare? Or how the metaverse was supposed to change the way we interact with the internet? These technologies certainly have their uses and have made some impact, but they haven’t lived up to the lofty promises made during their hype cycles.

AI is currently experiencing this same phenomenon. The term is slapped onto products and services to make them sound cutting-edge and attract investment. This marketing push can be misleading, creating unrealistic expectations about what AI can achieve. In reality, most of what is branded as AI today are advanced machine learning models, particularly LLMs like GPT-3 and GPT-4, which excel at language tasks but are far from being the all-encompassing problem solvers they are often portrayed to be.

The Utility of AI

Despite the overhype, AI and LLMs are not without their merits. These technologies can be incredibly powerful when used appropriately. For instance, LLMs can assist in drafting content, translating languages, summarizing documents, and even coding to some extent. They can streamline workflows, enhance productivity, and provide valuable insights from large datasets.

However, it’s crucial to recognize that AI should be viewed as a tool in a larger toolbox, not a magic wand. Just as you wouldn’t use a hammer for every task in construction, you shouldn’t rely solely on AI to solve all your business or personal challenges. AI can complement other technologies and human expertise, offering support in areas where it excels while leaving more complex, nuanced tasks to other methods and professionals.

The Short-Sightedness of the AI Marketing Push

The current marketing push to integrate AI into everything is short-sighted and reminiscent of past tech bubbles. Unlike the relatively isolated tech booms of the past, the AI hype is more pervasive, touching virtually every industry. This widespread adoption is being driven by a fear of missing out (FOMO) and the belief that AI will bring about unprecedented change.

However, the reality is that AI, particularly in its current form as LLMs and other machine learning models, has limitations. It is excellent for specific tasks but struggles with generalization, understanding context at a human level, and dealing with ambiguous or incomplete information. The financial bubble created by the over-promotion of AI is unlikely to have the same return on investment as previous tech innovations because the technology’s limitations will become more apparent over time.

Final Thoughts, Looking Ahead

While the presence of the term “Artificial Intelligence (AI)” in a product description may be viewed as a sign of that product having advanced capabilities and features, it may also trigger fear and concern among consumers. A recent study found that including the term “AI” in product descriptions actually decreases purchase intention, with emotional trust mediating this relationship. This effect is even stronger for high-risk products compared to low-risk ones. These findings suggest that the current AI hype may not only be misleading but could also backfire by decreasing consumer trust and purchase intentions.

AI, especially in the form of LLMs, can indeed feel like a grift when marketed as a panacea. Yet, this doesn’t diminish its potential utility. When integrated thoughtfully and used in conjunction with other tools and human expertise, AI can be incredibly valuable. The key is to approach AI with a realistic understanding of its capabilities and limitations, avoiding the trap of believing it to be more than it is.

The tech industry should learn from the lessons of past hype cycles. Over-promising and under-delivering will only lead to disappointment and skepticism. Instead, we should focus on the genuine, incremental improvements AI can offer, recognizing it as a powerful tool among many in our ever-expanding technological arsenal.

For more information, please read the research article titled “Adverse impacts of revealing the presence of “Artificial Intelligence (AI)” technology in product and service descriptions on purchase intentions: the mediating role of emotional trust and the moderating role of perceived risk”, the study, published in the Journal of Hospitality Marketing & Management, researchers conducted experimental surveys with more than 1,000 adults in the U.S. to evaluate the relationship between AI disclosure and consumer behavior.

While the presence of the term “Artificial Intelligence (AI)” in a product description may be viewed as a sign of that product having advanced capabilities and features, it may also trigger fear and concern among consumers. Therefore, this study explores the impact of inclusion (vs. exclusion) of the “Artificial Intelligence” term in goods and service descriptions on consumers’ purchase intentions. It also examines the mediating role of emotional trust and the moderating role of perceived product risk in this relationship. We conducted six experiments to investigate these relationships. The data were analyzed using T-tests and Hayes Process Macro Models 4 and 7. The findings of the study indicated that the inclusion of the “Artificial Intelligence” term in descriptions of products and services decreases purchase intention, and that emotional trust mediates this relationship. Findings further suggested that the negative mediating effect of emotional trust on the impact of AI term on purchase intention was stronger for high-risk products, compared to low-risk products. These findings provide valuable insights for both academia and practitioners, leading them to develop more effective and appealing strategies in the applications of AI.

Source: https://www.tandfonline.com/doi/full/10.1080/19368623.2024.2368040