Beyond the Hype: AI Innovation and Lessons from the Dotcom Era

This is simply a random thought that occurred to me, and I wanted to share it with you.

Not long after, in November 2022, OpenaAI made the chatGpt 3.5 available to the public, allowing them to see the tip of the iceberg of what is to come.

Then, within 6 months, GPT-4 was launched, increasing the hype about AI and its applications once more. With that, OpenAI shared some API integration with select startups, but not all of them. Startups and businesses alike started to incorporating AI technology into their products, coming up with new ideas, and even pivoting their products to make them more relevant.

Nonetheless, this is a good indicator of growth until they start ignoring efficiency and not truly enhancing the product, rather than simply following the trend and because of FOMO. And this thought reminded me of the pre-dotcom bubble era, which I learnt about through the internet itself.

The dotcom bubble was a speculative boom that occurred in the late 1990s and early 2000s, when there was a lot of buzz and excitement about the internet and its potential to alter the way people lived and worked. This generated contagious optimism and enthusiasm, leading many investors to feel that internet-based businesses were the way of the future.

Investors poured large sums of money into these companies, many of which had little or no revenue or profits, in the hope of making a quick profit. This caused stock prices to rise to unsustainable levels, resulting in a crash when the bubble eventually burst. Many companies went bankrupt, and investors lost large sums of money.

Don't get me wrong, I'm not saying it's the exact same situation. While the current trend of using AI to pivot products shares some similarities with the dotcom bubble era, there are many differences that prevent it from matching the situation of the dotcom bubble.

To begin with, the current trend is based on genuine technological advances, whereas the dotcom bubble was fueled by hype and speculation. AI is a powerful technology with the potential to disrupt many industries, and many successful startups have already used AI to develop innovative products and services.

Second, unlike during the dotcom bubble, the current startup ecosystem is more mature and well-regulated. More experienced entrepreneurs, investors, and regulators now understand the risks and rewards of startup investing and can help guide the industry's development.

However, it is important to note that the startup ecosystem remains vulnerable to risks and uncertainties, and there is always the risk of a bubble forming if investors become overly optimistic or exuberant. However, investors must still carefully evaluate each opportunity and make informed decisions. Most importantly, we must use technology to make something that has a significant impact on improving technology and real-world applications, rather than simply following the trend while ignoring the importance of true growth.

Thanks For Reading!!!

Do share your thoughts on this...Peace ?

P.S: I know the Cover photo is unrelated, generated it using an AI Bot.