AI: The New Pet Rock or a Genuine Revolution?

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We’ve seen this story before. A shiny new object captures the world’s imagination, promising transformative change. Companies scramble to stake their claim, early adopters rush to flaunt it, and skeptics question its staying power. Artificial intelligence (AI) is the latest in many innovations with near-mythical promises. But is it truly revolutionary, or is it destined to fade like a Pet Rock?

The history of innovation is littered with cautionary tales of misplaced optimism and overblown promises. From the California Gold Rush to the dot-com bubble, humanity’s tendency to sell dreams often outpaces its ability to deliver reality. As we navigate the AI revolution, we must discern whether it’s the next transformative force or another moment of collective hysteria.

For customers, the growing reliance on AI to manage interactions with brands often forces them to engage in ways they may not want to, eroding trust and authenticity. Chatbots, automated responses, and overly data-driven personalization risk alienating consumers who value genuine human connection. This shift can lead to manipulation or scamming, as consumers question whether the interactions are sincere or algorithmic tactics to drive sales. Over time, brands that fail to adapt to these concerns may lose customers to competitors who prioritize meaningful, authentic engagement, ultimately undermining the trust that underpins brand loyalty.

The Pet Rock of AI: Selling the Sizzle, Not the Steak

In 1975, the Pet Rock became a cultural phenomenon. (As a side note, AI is older than the Pet Rock by almost 15 years.) For $3.95, you could buy a rock in a cardboard box with breathing holes and a humorous training manual. It was absurd, it was viral, and it was ultimately empty. The Pet Rock didn’t solve a problem or add lasting value—it was a gimmick packaged as a product. Granted, Gary Dahl became a millionaire from his invention, but this is the point.

In many ways, AI today echoes the Pet Rock. Tools like ChatGPT and MidJourney dazzle us with their capabilities. AI can write poetry, generate art, and solve math problems faster than we can type. But for every breakthrough, there’s an application that feels like a novelty. A service that looks impressive and has a magical quality to it but lacks substance and making sales people a lot of money. Like the Pet Rock, AI risks being sold for its spectacle rather than its utility.

False Promises: A History Repeats Itself

AI’s trajectory resembles historical instances where people bought into grand promises that failed to materialize. These parallels serve as cautionary tales:

The Gold Rush Mentality

In the mid-1800s, the California Gold Rush promised wealth to everyone seeking it. Thousands of hopeful miners flocked west to find barren streams and empty claims. The real winners were those selling shovels, pickaxes, and lodging to the miners.

Today, AI startups, cloud providers, and infrastructure companies sell shovels enabling AI adoption. While some businesses may strike gold, many will find the cost of adoption outweighs the returns.

The Dot-Com Bubble

In the late 1990s, the internet was poised to revolutionize everything. Startups promised exponential growth, and investors poured billions into companies that lacked viable business models. When the bubble burst, countless companies evaporated overnight.

AI’s current moment feels eerily similar. Startups with vague promises of “AI-driven solutions” attract massive investments. The problem? Many of these solutions lack practical application or scalability. When the hype subsides, only a few will remain standing.

Snake Oil Salesmen

In the 19th century, traveling salesmen hawked “miracle cures” for every ailment. These products were often useless, relying on marketing rather than science to drive sales.

The AI equivalent lies in tools that overpromise. From predictive analytics platforms claiming to foresee every trend to chatbots presented as infallible assistants, many AI products fail to deliver on their claims. The gap between expectation and reality often leads to wasted resources and disillusionment for businesses.

Why We Fall for the Hype

Humans are wired to seek progress. We want to believe in solutions that make our lives easier, our businesses more efficient, and our futures brighter. AI taps into these desires, offering the allure of limitless potential. But beneath the shiny exterior lies a simple truth: AI is a tool, not a panacea.

The real danger isn’t in AI but in how we frame it. When marketed as the solution to every problem, AI becomes a crutch rather than an enabler. Businesses adopt it without clear objectives, expecting it to work magic. When it inevitably falls short, they abandon it, blaming the tool rather than their unrealistic expectations.

The Utopian Dream vs. Practical Reality

Consider the utopian promises of the Industrial Revolution or communism. Both claimed to usher in a new era of prosperity and equality. Yet both fell short when implemented, revealing human and systemic flaws that no technology or ideology could erase.

AI is similarly positioned. Its promise is undeniable—automating repetitive tasks, personalizing customer experiences, and uncovering insights at scale. However, its implementation often reveals complexities: biased datasets, ethical dilemmas, misaligned personalization, lacking context, void of emotions, and the immense computational power required.

The result? A gap between vision and execution. AI can do remarkable things, but only within the boundaries of what it’s designed for. When businesses treat it as a magic wand, they set themselves up for disappointment.

AI’s Real Potential: Beyond the Hype

Does this mean AI is doomed to be another Pet Rock? Not necessarily. While the hype around AI mirrors past fads, its potential to create meaningful change is real. The key lies in shifting our focus from grand promises to practical applications.

• Solve Real Problems

AI’s most successful use cases address specific, well-defined problems. Think fraud detection, supply chain optimization, or personalized learning experiences. These applications aren’t flashy, but they deliver tangible value.

• Embrace Transparency

One of AI’s biggest challenges is its opacity. Many models function as “black boxes,” making decisions that users can’t understand. Businesses and developers must prioritize transparency, ensuring users trust and understand AI's operation.

• Balance Automation and Human Insight

AI isn’t a replacement for human creativity or judgment. The best outcomes come from leveraging AI to enhance human capabilities, not replace them.

• Focus on Longevity

Short-term wins often overshadow long-term sustainability. Businesses must think beyond the initial hype, investing in AI solutions that align with their strategic goals and deliver ongoing value.

Learning from the Past

If history teaches us anything, it’s that the biggest winners aren’t those who chase the hype, they’re the ones who see through it. AI is neither the Pet Rock nor the elixir of life. It’s a tool with incredible potential, but only for those willing to approach it with clarity and purpose.

The lesson is simple: don’t buy the promise. Buy the process. The promise says, “AI will solve all your problems.” The process says, “How do we solve this problem using AI?” One leads to frustration, the other to progress.

A Call to Action

As AI continues to evolve, we must ask the hard questions:

• What problem are we trying to solve for our customers?
• Do customers want this type of interface with our business?
• Is AI the right tool for this particular problem?
• How do we measure success?

We’ve been here before, from the snake oil of the 1800s to the dot-com dreams of the 1990s. Let’s learn from the past to build a future where AI fulfills its promise.

AI doesn’t have to be a Pet Rock. But it’s up to us to ensure it isn’t.

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Chris Hood is a customer-centric strategist and author of “Customer Transformation,” and has been recognized as one of the Top 40 Global Gurus for Customer Experience.

To learn more about building customer-centric organizations or improving your customer experience, please contact me at chrishood.com/contact.