Parmy Olson, Columnist

AI’s Slowdown Is Everyone Else’s Opportunity

Businesses will benefit from some much-needed breathing space to figure out how to deliver that all-important return on investment.

A slowdown in the pace of development of AI tools offers some much-needed breathing space for businesses to figure out how to deliver that all-important return on investment.

Photographer: Andrey Rudakov/Bloomberg
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The multi-trillion-dollar artificial intelligence boom was built on certainty that generative models would keep getting exponentially better. Spoiler alert: they aren’t.

In simple terms, “scaling laws” said that if you threw more data and computing power at an AI model, its capabilities would continuously grow. But a recent flurry of press reports suggests that’s no longer the case, and AI’s leading developers are finding their models aren’t improving as dramatically as they used to.