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277

If "AI" doesn't attract customers why are companies hyping it so hard? Are they just dumb or is there another factor? (lemmy.world)

submitted 3 months ago by Acamon@lemmy.world to c/asklemmy@lemmy.world

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I've seen reports and studies that show products advertised as including / involving AI are off-putting to consumers. And this matches what almost every person I hear irl or online says. Regardless of whether they think that in the long-term AI will be useful, problematic or apocalyptic, nobody is impressed Spotify offering a "AI DJ" or "AI coffee machines".

I understand that AI tech companies might want to promote their own AI products if they think there's a market for them. And they might even try to create a market by hyping the possibilities of "AI". But rebranding your existing service or algorithms as being AI seems like super dumb move, obviously stupid for tech literate people and off-putting / scary for others. Have they just completely misjudged the world's enthusiasm for this buzzword? Or is there some other reason?

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[–] Ephera@lemmy.ml 21 points 3 months ago (1 children)

Yeah, investors kind of amplify hype. When there is hype, you will have some investors investing money.
If there's investors investing money, it makes sense for other investors to try to invest first, so that their invested money gains value (the share price rises).
And then it becomes somewhat of a self-fulfilling prophecy, because suddenly you do have companies equipped with money to pursue that hype, which can feed back into the hype.

But similarly, you'll eventually reach a point where it does not live up to the inflated hype and then shareholders can just as well be extremely quick to pull out their money and amplify the crash.

[–] slazer2au@lemmy.world 6 points 3 months ago

Investors also know not every product will sell. So pad the bet and spread wide to increase your chances to score big.