Experts Say AI Industry Will Slow Down in 2024

Perhaps the single biggest trend to hit the tech world in 2023 is that of generative AI, which prompted countless venture capital firms to start pouring investments into new start ups. AI continued to generate a lot of hype throughout much of the year, but in spite of the fact that this is the case, experts say that the industry will experience a significant slowdown in 2024 with all things having been considered and taken into account.

According to an analyst at CCS Insight, the cost of doing business is about to get insurmountably high for companies in this space. With all of that having been said and now out of the way, it is important to note that generating millions of queries for so many users was bound to catch up with companies sooner later. These costs will invariably be passed down to consumers, as can already be seen with OpenAI putting ChatGPT 4 behind a paywall and requiring users to pay $20 a month for it.

A report that was recently published in the Wall Street Journal indicated that Microsoft was losing $20 per user through GitHub Pilot alone. This code writing AI costs about $30 a month to gain access to, but this still isn’t enough to help Microsoft turn a profit. As a result, we might start to see prices for these services become a great deal higher than might have been the case otherwise.

Another thing that bears mentioning is that it’s not just costs that are hitting these businesses hard. Governments are tightening regulations because of the fact that this is the sort of thing that could potentially end up keeping these new companies in check. While this might be a good thing for public safety, it can also serve as an obstacle that many fledgling AI start ups would struggle to work around.

Circling back to CCS Insight, the firm predicted that human programmers will be able to make a comeback by 2026. The quality of code created by AI might be high, but it still requires input from humans in order to make it useful. This coupled with rising costs will allow human programmers to maintain their status, which dispels any rumors that the job market will see a decrease in jobs and may instead lead to more jobs getting created down the line.

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