Wood highlighted that although they are defenders of AI, because it will have a significant impact on the economy, which will represent benefits to society and productivity, he also said that the hype has been too intense throughout 2023.
“The buzz around generative AI in 2023 has been so immense that we believe it is overrated and that there are many obstacles to overcome to bring it to market,” commented the analyst, highlighting that the technology that enables AI functions is increasingly more complex.
In this regard, the analyst firm highlighted that to enable the technology, high-power chips and advanced graphics processing units must be accessed to execute large workloads. Currently, Nvidia is the most important company in the semiconductor sector, but greater market participation by other companies is required to diversify competition.
While large companies such as Microsoft and Google will have the ability to pay for these resources, analysts highlighted that for many organizations and developers it will be too expensive.
Regulations and false information, concerns around AI
Another issue that will also mark the direction of AI is the regulation of the European Union, since it is expected that the most consistent steps will be taken in this regard in 2024, which would also contribute to self-regulation by companies.
According to the proposed legislation, there will be different levels of regulation based on the possible dangers posed by the development of the technology, which is why it has been criticized too much by companies, as they consider that the plans become too restrictive.
Although more and more companies are using the technology, there are also growing concerns about how it can affect other areas, such as entertainment, since it has impacted everything from Hollywood to the music industry, which would also stop its development.
On the other hand, another element that the analyst firm noted is the integration of more warnings regarding content generated by Artificial Intelligence, based on an ethical and transparent approach to avoid misinformation.
While this slow pace of AI may seem like bad news for the industry, CCS Insight also highlighted its prediction that arrests will begin to be made against people who engage in some type of AI-based fraud, either through deepfakes or voice spoofing.