AI hype is echoing blockchain’s 2017 rollercoaster.
The recent AI boom has seen companies rush to slap “AI-first” on their brands and chase quick gains. The result? Stock spikes based on buzz, not substance.
Back in 2017, blockchain sucked in cash and attention despite barely delivering real value. Firms like Long Island Iced Tea rebranded to Long Blockchain Corp and saw shares jump 400% overnight – without any blockchain product. Kodak launched KodakCoin and saw their stock soar likewise. Yet by 2019, 90% of enterprise blockchain projects had failed. 
Fast-forward to 2023: AI-flavored hype pushed BuzzFeed’s shares up 100% after announcing AI-driven quizzes. Klarna fired 700 staff, switching to AI chatbots – only to backtrack after customer satisfaction dived. CNET ran AI-written stories riddled with errors. BuzzFeed News shut down. The pattern screams overhype.
The cycle is clear. Gartner’s tech hype cycle charts a rise fueled by inflated promises, a trough of disillusionment, then realistic use cases. Meta’s $40 billion metaverse bet is a textbook tech hype failure.
Klarna CEO commented on backing off AI chatbots after poor results.
> “We learned that AI shouldn’t replace humans, but complement them.”
The key takeaway? AI should boost human work, not replace it. Mistakes, misinformation, and pushback from workers show unresolved kinks.
Gartner reports the AI hype cycle is waning in 2024. That drop doesn’t mean AI’s dead. It signals a shift into slower, deliberate adoption phases. Blockchain found footing with asset tokenization in finance after hype fizzled. AI will likely follow suit with real-world solutions.
Companies chasing hype lose focus on real problems. They overpromise, rush rollout, and ignore complexity. The aftermath is costly missteps, not failed tech.
The AI hype bubble will burst like blockchain, but the tech itself is here to stay. Smart investors and execs need to watch the cycle, avoid fad investments, and prioritize practical AI use.
Real value comes from purpose-driven AI deployment, not splashy announcements or buzzwords.
