
Sign up to save your podcasts
Or


The current landscape of artificial intelligence (AI) highlights a troubling trend where tech companies focus on technology-to-technology transactions rather than engaging with end customers, particularly those in the Global 2000. Notable players like OpenAI are involved in circular investment deals, recycling funds among themselves, which results in inflated revenue figures that do not translate to actual sales.
Analyses of the S&P 500 reveal that excluding leading tech firms shows stagnation in market performance, indicating that much of the perceived value is confined to a handful of companies. Moreover, surveys indicate that 95% of organizations investing in AI do not see returns, underscoring a systemic issue in the sector. This reliance on tech-to-tech deals represents a "robbing Peter to pay Paul" scenario, where companies prioritize short-term gains over meaningful customer engagement. For the AI industry to thrive sustainably, it must pivot towards addressing real-world needs and ensuring genuine profitability beyond mere inter-company transactions, aligning with the needs of broader enterprise customers who are essential for long-term growth.
By David LinthicumThe current landscape of artificial intelligence (AI) highlights a troubling trend where tech companies focus on technology-to-technology transactions rather than engaging with end customers, particularly those in the Global 2000. Notable players like OpenAI are involved in circular investment deals, recycling funds among themselves, which results in inflated revenue figures that do not translate to actual sales.
Analyses of the S&P 500 reveal that excluding leading tech firms shows stagnation in market performance, indicating that much of the perceived value is confined to a handful of companies. Moreover, surveys indicate that 95% of organizations investing in AI do not see returns, underscoring a systemic issue in the sector. This reliance on tech-to-tech deals represents a "robbing Peter to pay Paul" scenario, where companies prioritize short-term gains over meaningful customer engagement. For the AI industry to thrive sustainably, it must pivot towards addressing real-world needs and ensuring genuine profitability beyond mere inter-company transactions, aligning with the needs of broader enterprise customers who are essential for long-term growth.