AI faces a reality check as investors demand proof it can deliver real value

After businesses and consumers spent 2024 testing out new AI tools and last year rolling them out widely, the technology now faces tough questions about whether it can deliver on its promises. While hundreds of thousands of companies and several hundred million people put AI to work in various ways, some found it helpful while others ran into problems that led to costly mistakes. The coming months will see an intense examination of whether AI systems work reliably enough and make financial sense for the massive amounts of money being poured into them. Investment in AI equipment and infrastructure could reach $500bn in 2026 , making it crucial for the industry to answer three major challenges. Growth strategy hits a wall as investors demand results The first issue centers on whether AI’s growth strategy has reached its limits. In 2019, researcher Rich Sutton published a piece called “ The Bitter...

https://www.cryptopolitan.com/can-ai-justify-its-massive-investment-2026/