Why is AI Failing?

🏝 TheTechOasis 🏝

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😟 Why Is AI Failing? 😟

Here’s a number that will shock you.

Since the explosion in popularity of AI with the release of ChatGPT, Microsoft, Alphabet, and Amazon have added around $2.5 in market cap value.

Yet, to date, these same companies have generated around $20 billion directly from AI applications, 120 times less. Unsurprisingly, this failure pattern extrapolates to almost every corner of the industry (except hardware), especially when deploying AI.

Now, with Google’s latest - yet absolutely hilarious - AI product failure in their new AI-based search we talked about on Thursday, it got me thinking:

Why are GenAI products failing so badly?

Today, we are addressing just that. But besides the current issues, the truth is that most people use them wrong, and with just a few simple yet high-signal tips, you can go from an unimpressive experience into a remarkable one.

And we are covering those, too.

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A Glorified Shithole

Two sides of a coin; even if AI is undoubtedly legit, most current applications suck big time. And we have a very long list of examples, both at software and hardware levels.

Thus, we must analyze the most notable examples to understand what is happening. And you will be surprised by some of the names.

Your Inferior Copilot

When Microsoft Copilot was presented to the world, everyone, including me, was completely amazed. Over a year later, underwhelming is the word.

Slow, not the smartest chatbot you’ve ever used for sure; it fails a lot, and with multiple Reddit threads crying out their pains.

All in all, very far from the high expectations they set. While the idea is brilliant, it was way ahead of its time. Also, as long as the model is cloud-based, the speed will never be amazing.

Furthermore, when not used in a strict Microsoft Office workspace, it’s basically unusable, and the reasoning and planning capabilities are lacking, as the models simply aren’t good enough.

The biggest proof of this is that during Microsoft’s last earnings call, Satya Nadella did not mention direct revenues from Copilot, which they definitely would have if they had the opportunity to brag.

He did mention they already had 1.3 million paid GitHub Copilot users, a product that is well-considered among developers. However, this product is a net loss for Microsoft, as infrastructure costs go well beyond what users pay (at times up to four times).

They did’t mention revenues either so that…

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