Artificial ingredients

In the 1960s, Stanford University professor Roy Amara noted that ‘we overestimate the impact of technology in the short term and underestimate the effect in the long run.’ It is also possible that sometimes the reverse is true. This week Bloomberg released a report forecasting that by 2032, revenues from generative artificial intelligence (AI) will reach USD 1.3 trillion, and account for 12% of all information technology spending. Given generative AI is a subset of the field, the forecast implies that total AI revenues will be even higher. Indeed, the high cost of training and operating computer-intensive AI software has materially lifted recent technology company results, particularly for providers of high-speed processors. Notably, mentions of AI during recent technology sector earnings conference calls rose more than five-fold year on year. As with statements like ‘organic’ and ‘all natural’ found on food packaging, it is worth taking the time to read the ingredients to better understand the claim.