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Investors are growing increasingly weary of AI


A new report from Stanford's Institute for Human-Centered Artificial Intelligence (HAI) found that global investment in AI fell for the second year in a row in 2023.

“While the long-term market potential remains immense, the initial exuberance has been tempered by the complexities and challenges of scaling AI technologies in real-world applications … This suggests a more mature and discerning investment landscape.” Aaron Fleishman, partner at Tola Capital, says that investors might be coming to the realization that they’ve been too reliant on “projected exponential growth” to justify AI startups’ sky-high valuations. “We’ll soon be evaluating whether generative AI delivers the promised efficiency gains at scale and drives top-line growth through AI-integrated products and services,” Kumar said.

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