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Deutsche Bank Declares the ‘Honeymoon Phase’ for AI Has Ended

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2023: A Pivotal Year for AI – Insights from Deutsche Bank Research

This year promises to be a challenging one for artificial intelligence, as noted by Deutsche Bank Research Institute. The anticipated “AI reckoning” raises crucial questions about the technology’s returns and sustainability.

Key Insights:

  • Disillusionment: Expected benefits remain evident primarily to early adopters. Executives seek immediate revenue, while many AI models struggle with real-world application.
  • Dislocation: A widening gap exists between AI demand and capacity due to talent shortages and systemic bottlenecks. Notably, companies like OpenAI could face increased scrutiny.
  • Distrust: Concerns over job displacement, privacy, and geopolitical tensions will rise. The U.S.-China AI race heightens the stakes for a technology once deemed revolutionary.

As the market evolves, understanding these dynamics will be essential for navigating the future of AI.

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