{"id":5729,"date":"2026-05-28T08:08:52","date_gmt":"2026-05-28T06:08:52","guid":{"rendered":"https:\/\/www.alainveuve.ch\/the-billion-dollar-bluff-why-the-ai-hype-must-die-for-the-real-ai-revolution-to-begin\/"},"modified":"2026-05-28T08:20:45","modified_gmt":"2026-05-28T06:20:45","slug":"the-billion-dollar-bluff-why-the-ai-hype-must-die-for-the-real-ai-revolution-to-begin","status":"publish","type":"post","link":"https:\/\/www.alainveuve.ch\/en\/the-billion-dollar-bluff-why-the-ai-hype-must-die-for-the-real-ai-revolution-to-begin\/","title":{"rendered":"The billion dollar bluff: Why the AI hype must die for the real AI revolution to begin."},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">There is probably no better time to start writing blog posts about technology, strategy and society than now. The technological world is at a tipping point, and what comes next will either be seriously &#8220;semi-fun&#8221; or a complete disaster for the global economy. The reason is simple: AI is far from what it has been made out to be over the last 24 months.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To start with &#8211; for those who don&#8217;t know me yet &#8211; I&#8217;m pro-technology through and through. I&#8217;ve spent the last 10 years of my professional life working primarily with AI, much longer than AI was generally considered &#8220;cool&#8221; and the &#8220;next big thing for humanity&#8221;. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That doesn&#8217;t qualify me to know better per se, but what I have learned during this time is this: Building a technology that can theoretically do a lot is one thing, but adapting and applying this technology on a large scale is something completely different.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Yes! No! Oh wait?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When new technologies are suddenly noticed by a broad section of the population, the same thing always happens:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>First of all, the technology is grossly overestimated in the short term,<\/li>\n\n\n\n<li>then everyone is extremely disappointed<\/li>\n\n\n\n<li>only to subsequently underestimate them to the same extent<\/li>\n\n\n\n<li>and then later to be totally surprised that they changed everything after all.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The current AI hype is no different. The spark that ignited everything was the combination of large language models with the chat window. Although language models were nothing new by far, the combination, this new &#8220;natural&#8221; interaction with computers, was something groundbreaking.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the first time, the general public was able to communicate easily with computers. You could ask a question &#8211; like on the Starship Enterprise, so to speak &#8211; and actually get an answer. This answer was and is often not necessarily correct and\/or precise in terms of content, but it sounded so good and well-rounded that even cognitively hardened contemporaries thought it was &#8220;totally great&#8221;. The experience was groundbreaking, the content &#8220;sub-par&#8221;.   <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don&#8217;t get me wrong, of course we saw and still see a leap in the capabilities of AI models, but it wasn&#8217;t that surprising.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Autonomy vs. automation<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What was new was the attention it generated. My mother suddenly came around the corner and told me about the new AI. For people who were involved with these technologies, there was a feeling of &#8220;now everything is possible, now everything is changing&#8221;. That was &#8211; and still is &#8211; the general narrative.   <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And AI providers have gratefully embraced this narrative and underpinned it with economic fantasies. First and foremost the fantasy that it could completely replace human labor. I agree (and have for a very long time btw) that sooner or later we will get to the point where what we define as work in 2026 will be done entirely by autonomous software systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But not tomorrow and certainly not today. Everyone who works professionally with this technology knows that. The hurdles and challenges are manifold, and I think I will go into them in detail in future articles.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What was promised is autonomy what we have gotten and will continue to get is much more radical automation. Autonomy and automation are <a href=\"https:\/\/www.alainveuve.ch\/en\/game-changer-autonomization\/\" data-type=\"post\" data-id=\"3463\" target=\"_blank\" rel=\"noreferrer noopener\">fundamentally different<\/a>, both in the provision and in the benefits of use. Autonomy changes the entire equation, automation optimizes the existing one.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The providers of AI and the group of &#8220;shovel sellers&#8221; who benefit from this hype have never tired of emphasizing that AI will cost I don&#8217;t know how many jobs. This attracted backers like cow dung attracts flies. The whole promise was hyped up like there was no tomorrow. Many people with little knowledge of technological adaptation and a lot of money ran blindly. It is now estimated that half of US economic growth in 2025 will be based directly or indirectly on AI.    <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Paper tiger values<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the most part, these are not real cash flows and certainly not real value creation, but rather valuation increases and &#8220;allocation commits&#8221; for chips and data centers. To make things even worse, all the major IT players have invested in their customers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How this works is simple: cloud or hardware providers invest in AI companies, which then place orders with these investors on a large scale. Everyone benefits from this for so long &#8211; because valuations rise and the quarterly financial statements look great when the order books are full. This works well until nobody believes in it anymore because the necessary, roaring real demand fails to materialize.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Where is the beef?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To say that there is no demand for AI is of course fundamentally wrong. There is and it is high. But it is in no way as high as the expectations that have been created and priced in, which are reflected in the valuations of AI providers.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as investors across the board realize &#8211; and this is just beginning &#8211; that the funds invested (at astronomical valuations) will never bring a return, confidence erodes. And as blindly as many have entered into the &#8220;FOMO frenzy&#8221;, they then attempt &#8220;instant damage limitation&#8221;, so to speak. The perfect recipe for drama.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additional storm clouds are gathering because the IPOs of SpaceX, Anthropic and OpenAI are being discussed at the same time. An estimated USD 150-200 billion in liquidity would have to flow in for it to be a success for the companies. Liquidity that is of course not lying around under the pillow of the funds, but has to be drawn from other assets. Whether this will happen to the necessary extent is highly questionable. Everyone will have to think again about how sustainable such an investment can be.    <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Unit Economics, who cares<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is another, yet quite unrecognized problem. Demand does not currently reflect the real economic conditions. It would be interesting to see how many companies would use AI to the same extent if only the actual full costs were included in the prices. It&#8217;s like driving at night without the lights on in the hope that it will soon be daylight.   <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Grande Finale?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I think what&#8217;s coming now is not the finale, no, it&#8217;s the beginning. First, Rome has to burn down, so to speak, so that it can really take off. It is often only secondarily that the real adaptation begins, that companies start to benefit from the technology on a large scale. It is already as clear as daylight that this cannot work with the current architecture (I deliberately mean technically) and above all with the current unit economics.   <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The changes are in full swing and they are coming. And we will see a decade of real AI. Real efficiency gains across the board, real cash flows, real profits. Real social change. Sober.    <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The writings on the wall<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pay attention to the statements that the various protagonists will now announce, they will change fundamentally. And the narrative will change quickly, critics will become more prominent. In addition, a new &#8220;machine storming&#8221; is emerging, which will certainly also be used politically. So the time is ripe!   <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For now, you can sit back, especially if you&#8217;re not heavily invested in the AI hype, and &#8220;experience&#8221; the spectacle. Entertainment guaranteed! As Elon Musk said, &#8220;The most entertaining outcome is the most likely&#8221; It is quite possible that he will be right here too.  <\/p>\n<div class=\"twoclick-intro\"><p>Artikel auf Social Media teilen:<\/p>\n<\/div><div class=\"twoclick_social_bookmarks_post_5729 social_share_privacy clearfix 1.6.4 locale-en_US sprite-de_DE\"><\/div><div class=\"twoclick-js\"><script type=\"text\/javascript\">\/* <![CDATA[ *\/\njQuery(document).ready(function($){if($('.twoclick_social_bookmarks_post_5729')){$('.twoclick_social_bookmarks_post_5729').socialSharePrivacy({\"services\":{\"twitter\":{\"reply_to\":\"\",\"tweet_text\":\"%20The%20billion%20dollar%20bluff%3A%20Why%20the%20AI%20hype%20must%20die%20for%20the%20real%20AI%20revolution%20...\",\"status\":\"on\",\"txt_info\":\"2 Klicks f\\u00fcr mehr Datenschutz: Erst wenn Sie hier klicken, wird der Button aktiv und Sie k\\u00f6nnen Ihre Empfehlung an Twitter senden. \",\"perma_option\":\"off\",\"language\":\"de\",\"referrer_track\":\"\"},\"linkedin\":{\"status\":\"on\",\"txt_info\":\"2 Klicks f\\u00fcr mehr Datenschutz: Erst wenn Sie hier klicken, wird der Button aktiv und Sie k\\u00f6nnen Ihre Empfehlung an LinkedIn senden. \",\"perma_option\":\"off\"}},\"txt_help\":\"Wenn Sie diese Felder durch einen Klick aktivieren, werden Informationen an Facebook, Twitter, Xing, LinkedIn oder Google eventuell ins Ausland \\u00fcbertragen und unter Umst\\u00e4nden auch dort gespeichert. \",\"settings_perma\":\"Dauerhaft aktivieren und Daten\\u00fcber-tragung zustimmen:\",\"info_link\":\"http:\\\/\\\/www.heise.de\\\/ct\\\/artikel\\\/2-Klicks-fuer-mehr-Datenschutz-1333879.html\",\"uri\":\"https:\\\/\\\/www.alainveuve.ch\\\/en\\\/the-billion-dollar-bluff-why-the-ai-hype-must-die-for-the-real-ai-revolution-to-begin\\\/\",\"post_id\":5729,\"post_title_referrer_track\":\"The+billion+dollar+bluff%3A+Why+the+AI+hype+must+die+for+the+real+AI+revolution+to+begin.\",\"display_infobox\":\"on\"});}});\n\/* ]]> *\/<\/script><\/div>","protected":false},"excerpt":{"rendered":"<p>There is probably no better time to start writing blog posts about technology, strategy and society than now. The technological world is at a tipping point, and what comes next will either be seriously &#8220;semi-fun&#8221; or a complete disaster for the global economy. The reason is simple: AI is far from what it has been&#8230;<\/p>\n","protected":false},"author":2,"featured_media":5728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[61],"tags":[],"class_list":["post-5729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-new-article"],"taxonomy_info":{"category":[{"value":61,"label":"New Article"}]},"featured_image_src_large":["https:\/\/www.alainveuve.ch\/wp-content\/uploads\/20260528_shutterstock_249572155.jpg",1000,802,false],"author_info":{"display_name":"Alain Veuve","author_link":"https:\/\/www.alainveuve.ch\/en\/author\/veuvea\/"},"comment_info":0,"category_info":[{"term_id":61,"name":"New Article","slug":"new-article","term_group":0,"term_taxonomy_id":61,"taxonomy":"category","description":"","parent":0,"count":1,"filter":"raw","cat_ID":61,"category_count":1,"category_description":"","cat_name":"New Article","category_nicename":"new-article","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/posts\/5729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/comments?post=5729"}],"version-history":[{"count":2,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/posts\/5729\/revisions"}],"predecessor-version":[{"id":5732,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/posts\/5729\/revisions\/5732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/media\/5728"}],"wp:attachment":[{"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/media?parent=5729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/categories?post=5729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.alainveuve.ch\/en\/wp-json\/wp\/v2\/tags?post=5729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}