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Goldman Sachs: AI Is overhyped, expensive, and unreliable

One of the world's largest investment banks wonders if generative AI will be worth the huge investment and hype: "will this large spend ever pay off?"

The paper ultimately questions whether generative AI will ever become the transformative technology that Silicon Valley and large portions of the stock market are currently betting on, but says investors may continue to get rich anyway. This is not a matter of just some tweaks being required here and there; despite its expensive price tag, the technology is nowhere near where it needs to be in order to be useful for even such basic tasks.” He added that Goldman Sachs has tested AI to “update historical data in our company models more quickly than doing so manually, but at six times the cost.” Covello then likens the “AI arms race” to “virtual reality, the metaverse, and blockchain,” which are “examples of technologies that saw substantial spend but have few—if any—real world applications today.”

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