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Say farewell to the AI bubble, and get ready for the crash
Los Angeles Times ^ | Aug. 20, 2025 3 AM PT | Michael Hiltzik

Posted on 08/20/2025 1:27:19 PM PDT by E. Pluribus Unum

Most people not deeply involved in the artificial intelligence frenzy may not have noticed, but perceptions of AI’s relentless march toward becoming more intelligent than humans, even becoming a threat to humanity, came to a screeching halt Aug. 7.

That was the day when the most widely followed AI company, OpenAI, released GPT-5, an advanced product that the firm had long promised would put competitors to shame and launch a new revolution in this purportedly revolutionary technology.

As it happened, GPT-5 was a bust. It turned out to be less user-friendly and in many ways less capable than its predecessors in OpenAI’s arsenal. It made the same sort of risible errors in answering users’ prompts, was no better in math (or even worse), and not at all the advance that OpenAI and its chief executive, Sam Altman, had been talking up.

AI companies are really buoying the American economy right now, and it’s looking very bubble-shaped.

    — Alex Hanna, co-author, “The AI Con”

“The thought was that this growth would be exponential,” says Alex Hanna, a technology critic and co-author (with Emily M. Bender of the University of Washington) of the indispensable new book “The AI Con: How to Fight Big Tech’s Hype and Create the Future We Want.” “Instead, Hanna says, “We’re hitting a wall.”

The consequences go beyond how so many business leaders and ordinary Americans have been led to expect, even fear, the penetration of AI into our lives. Hundreds of billions of dollars have been invested by venture capitalists and major corporations such as Google, Amazon and Microsoft in OpenAI and its multitude of fellow AI labs, even though none of the AI labs has turned a profit.

Public companies have scurried to announce AI investments or claim AI capabilities for their products in the hope of turbocharging their...

(Excerpt) Read more at latimes.com ...


TOPICS: Computers/Internet
KEYWORDS: ai; bubble
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To: E. Pluribus Unum

No, IT projects generally fail at 40%-50% rate.

And are abandoned at about a 25% rate.


21 posted on 08/20/2025 2:27:42 PM PDT by Mariner (War Criminal #18)
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To: E. Pluribus Unum

bump


22 posted on 08/20/2025 2:29:12 PM PDT by Albion Wilde (If [mortals] are so wicked with religion, what would they be without it? —Benjamin Franklin)
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To: BereanBrain
I use AI every day and I can do in 2 days what would have taken me a month.

It has been incredible how it has reduced code development and debugging time for me. I don’t need to look for and test libraries on new hardware. AI knows what to recommend and they mostly work the first time. And if not, it’s still a heck of a lot easier and faster to resolve any issues.

23 posted on 08/20/2025 2:33:39 PM PDT by mikey_hates_everything
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To: mikey_hates_everything

But all that said, you still need to be knowledgeable enough to verify what AI outputs.


24 posted on 08/20/2025 2:34:28 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: butlerweave

Ha ha ha! And so will all of these people singing the praises of AI… I need to buy more popcorn


25 posted on 08/20/2025 2:34:57 PM PDT by Maskot (Put every dem/lib in prison........like yesterday!!! )
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To: Raycpa

This next generation isn’t going to learn to write in school. AI will be doing it all.


26 posted on 08/20/2025 2:43:13 PM PDT by lodi90
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To: lodi90

Why they need to bring back Blue Books, stat!


27 posted on 08/20/2025 2:43:42 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: E. Pluribus Unum

First time I used v5 it droned on and on without directly answering my question. So I told it to keep its answers succinct and professional. Now every time I ask it something it prefaces the answers with “OK, I will now give you a succinct and professional answer” followed by the answer. No matter what I do it won’t stop prefacing when it answers, it’s driving me nuts. Guess I’ll go back to v4.


28 posted on 08/20/2025 2:55:11 PM PDT by Hazwaste (Democrats and other communists are like slinkies. Only good for pushing down stairs.)
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To: E. Pluribus Unum

AI is more and more data gobblers (storage), more and more soldiers (processors), webbed together, and people coding in [it doesn’t maatter].


29 posted on 08/20/2025 2:55:31 PM PDT by cymbeline
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To: dfwgator

Oh yeah, AI is not the end all and will not answer every question or solve all unsolvable problems on its own, but it’s a very useful tool and saves an f-ton of time and labor. The ability to simulate is icing on the cake. I also use it to suggest and test router configs to support new requirements. Experts are still needed for reality checks. But man...the amount of time saved having that tool at your disposal is like giving an expert carpenter a hammer or power tools for the first time.


30 posted on 08/20/2025 2:58:35 PM PDT by mikey_hates_everything
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To: mikey_hates_everything

I use Claude Code to generate the documentation for my application. It does a great job of summarizing how it works, and can even make suggestions on how to improve it.


31 posted on 08/20/2025 2:59:40 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: Lazamataz

Goodwin’s Law doesn’t apply to AI.


32 posted on 08/20/2025 3:05:18 PM PDT by circlecity
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To: KingLudd

On the revenue side is helping me package advisory services that can be done in connection with our current services by leveraging the information we have in creating reports that give advice for a fee

On the expense side it’s going to significantly cut down on research time, communication time with clients, and assist in establishing standard operating procedures so that I can delegate more work to lower paid people including possibly overseas.

On the efficiency side by decreasing the amount of time my employees are working on preparing tax returns, payroll, bookkeeping, financial statements, it’ll allow us to prepare more without increasing payroll. I have more potential work that can be done but not enough people to do it.


33 posted on 08/20/2025 3:13:47 PM PDT by Raycpa
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To: lodi90

This next generation isn’t going to learn to write in school. AI will be doing it all______________________

My experience so far on research it has a tendency not to see the forest but only the trees. When applied to planning it’ll come up with great plans but it lacks the wisdom necessary to combine the plans with practical applications. And it can very easily make mistakes that you can only find if you read it’s output.

So they may not need to write but they will still need the skills of reading comprehension and the human skill of wisdom.


34 posted on 08/20/2025 3:21:51 PM PDT by Raycpa
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To: E. Pluribus Unum

What’s Jim Cramer’s take? LOL


35 posted on 08/20/2025 3:35:05 PM PDT by mykroar ("It's Not the Nature of the Evidence; It's the Seriousness of the Charge." - El Rushbo)
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To: E. Pluribus Unum

I am predicting the biggest crash since 1929 due to combined bubble in AI stocks and crypto currency. Only thing I can’t predict is the exact date. You have some time to take profits and switch to something stable & reliable.


36 posted on 08/20/2025 3:38:28 PM PDT by Bobbyvotes (Term limits will get rid of corrupt politicians faster than delivery of Jimmy Johns sandwich)
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To: E. Pluribus Unum

Wait, they’re gonna need it to deepfake for 2026!


37 posted on 08/20/2025 3:51:39 PM PDT by bigbob (If thou doth eff around, thou wilt findeth out)
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To: E. Pluribus Unum

I hope so... Before they turn over all finance, medical, education, transportation, infrastructure, Etc. over to AI.

The only ones who support AI is because of the MONEY period...


38 posted on 08/20/2025 4:10:51 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: Hazwaste

Sometimes AI (as I currently understand it) can behave like a snippy, smart alec teenager, overdoing it’s rationale for delivering particular answers .


39 posted on 08/20/2025 4:58:23 PM PDT by lee martell
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To: E. Pluribus Unum

Gee. This was unpredictable.

/s


40 posted on 08/20/2025 8:19:51 PM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -')
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