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Home » Sundar Pichai Predicts AI Progress to Slow by 2025 | $1tr Investment Projections | 49% Consumer Hesitancy

Sundar Pichai Predicts AI Progress to Slow by 2025 | $1tr Investment Projections | 49% Consumer Hesitancy

Slower, Steadier Progress in AI as Industry Matures

Joan Aimuengheuwa by Joan Aimuengheuwa
December 9, 2024
in DisruptiveTECH
0
Sundar Pichai Predicts AI Progress to Slow by 2025 | $1tr Investment Projections | 49% Consumer Hesitancy
Sundar Pichai, Google CEO

Sundar Pichai, Google CEO

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Sundar Pichai, CEO of Google and its parent company Alphabet, has given a tempered yet positive view on the future of generative artificial intelligence (AI). 

Speaking at the New York Times DealBook Summit, Pichai predicted a slowdown in groundbreaking advancements by 2025, pointing out a change from the fast growth in recent years. 

While acknowledging the huge impact of technologies like Google’s Gemini, Meta’s Llama, and OpenAI’s ChatGPT, Pichai stressed that future progress will increasingly require deeper breakthroughs and more sophisticated innovations, as the “low-hanging fruit” in AI development has already been picked.

Despite this anticipated deceleration, Sundar Pichai dismissed talks that AI has hit a “performance wall.” He pointed to ongoing initiatives within the AI community to overcome challenges such as scaling data and improving reasoning capabilities. 

Companies like OpenAI are exploring new approaches to address these bottlenecks, ensuring that innovation continues, albeit at a slower pace.

Pichai’s views align with a cautious outlook shared by other tech leaders, such as Microsoft’s CEO Satya Nadella. Nadella likened AI’s development to the Industrial Revolution, explaining that initial progress may seem slow before significant acceleration occurs. 

However, not everyone in the industry shares this cautious perspective. OpenAI CEO Sam Altman, for instance, recently dismissed worries about stagnation, stating, “There is no wall,” on X (formerly Twitter).

Pichai also addressed the financial implications of AI, noting that while generative AI is widely regarded as a game-changer, its full economic potential remains untapped. 

Even with projections of AI investments exceeding $1 trillion in the coming years, tangible financial returns have yet to materialize. This emphasizes the long-term nature of AI’s impact, with incremental improvements likely paving the way for transformative applications in the future. 

Pichai highlighted advancements in areas such as reasoning and task automation, which could democratize programming skills and expand opportunities across various sectors over the next decade.

Yet, challenges are unending—not only in development but also in consumer adoption. A recent study titled The AI Adoption Gap and Consumer Needs, conducted by KS&R, revealed wide hesitancy among consumers toward generative AI products. 

Nearly half of the 500 respondents (49%) were reluctant to adopt AI-enabled technologies, with trust issues, a lack of understanding, and perceived risks cited as key barriers. Even younger demographics, such as 18- to 24-year-olds, were sceptical, with 42% unlikely to purchase such products.

The AI industry is evolving and bridging the gap between technology and consumer trust will be essential. While transformative breakthroughs may take longer to achieve, Pichai’s vision of a future built by incremental yet impactful progress shows the complexities and promise of AI’s growth direction.

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