AI’s immense size draws massive public investment despite high generative AI pilot failure rates.
Artificial intelligence has reached a scale where it is considered ‘too big to fail,’ prompting significant public sector investments despite a high failure rate of generative AI pilots in companies. Governments, for instance the UK, are fully committing to AI integration across critical sectors such as education, defense, and healthcare, recognizing AI’s potential to profoundly transform society.
Research indicates that large language models still struggle with complex reasoning, a limitation acknowledged by academic institutions and major tech players like Apple. Nonetheless, the AI industry’s sustained growth partly stems from pioneers’ strong confidence in its future capabilities. This faith drives continuous investment and expansion, albeit with an underlying gamble on eventual breakthroughs in AI’s reasoning and practical utility. The sector’s current dependence and scale create systemic risks and opportunities alike, framing AI as a focal point of technological and economic importance worldwide.
Source: The Hans India