AI Hype Cycle: What Blockchain Can Teach Us About Managing Expectations

Technology can be a topic that is difficult to understand and make predictions about, even for those with a strong technical background and perceived expertise. From Ethernet creator Robert Metcalfe’s 1995 prediction that the Internet would “catastrophic collapse” by next year to Intel’s prediction that 3D TV was the future, it is clear that predicting technological trends is difficult. AI is no different.

As difficult as it is to predict the future of technology, every new disruptive technology will go through this cycle. Most recently, we have gone through several hype cycles with innovations such as blockchain, cryptocurrency, metaverse, VR and now AI. Each of these technologies has captivated not only the public but also developers and investors, blurring the line between fact and fiction.

When a new technology captivates the public and the media, funding from venture capitalists, angel investors and crowdfunding begins to pour in. With new projects popping up every day and all promising to change the world forever, a hype bubble continues to form as both experts and non-tech-savvy individuals join in. Eventually, it becomes an impossible task to distinguish between projects with real potential and those destined to fail.

Blockchain and crypto are good examples of how these hype cycles can negatively affect a technology. For years, blockchain seemed to be integrated into every piece of software and hardware, getting to the point where the idea of ​​a Bitcoin Miner Toaster might not sound so ridiculous.

Once the blockchain and crypto hype cycle cooled and speculators started moving elsewhere, the ecosystem began to heal. Today, it’s easier to find projects that really want to disrupt through real applications, which is good news for founders and developers who want to build an actual product.

Last year the AI ​​hype cycles started as news about DALL-E, Stable Diffusion, Midjourney and ChatGPT started to go mainstream. Since the models are readily available and offer real applications to casual users, the cycle remains strong. It’s hard to predict how long this cycle will last as tech giants and startups continue to invest heavily in the technology and promise it will change everything (which it may well do).

With blockchain technology having already survived its own hype cycle, developers are looking at ways to integrate it with AI to better address some of the drawbacks of both technologies. This integration is particularly promising when it comes to areas such as data sovereignty, which has been a matter of debate with the rise of generative AI models.

This year’s edition of Grit Daily House at SXSW saw Tune.FM’s co-founder and president Andrew GuessBennu Solutions CISO John Godfreyand Anker Innovations’ head of global communications Eric Villains to talk about the last AI cycle. The “Future of AI & Blockchain” panel was moderated by Grit Daily’s editor John Biggs and touched on topics such as the role human empathy must play when it comes to AI, the technology’s ability to disrupt existing monopolies, the possibility of an upcoming AI singularity, the future of blockchain technology when paired with AI, and much more.

Most people have heard what the media and the general public have said about the latest developments in AI. To hear what those with a technical background and expertise in business development have to say, be sure to watch the video.