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

By Juan Fajardo Juan Fajardo has been verified by Muck Rack's editorial team
Published on March 24, 2023

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

No matter how hard predicting the future of technology is, every new technology that creates disruption will go through this cycle. Most recently, we have gone through multiple hype cycles with innovations like blockchain, cryptocurrency, the metaverse, VR, and now, AI. Every single of these technologies has captivated not only the public but also developers and investors, blurring the line between facts and fiction.

Once a new technology captivates the public and the media, funding from venture capitalists, angel investors, and crowdfunding starts to pour in. With new projects emerging by the day and all of them promising to change the world forever, a hype bubble continues to form as both experts and non-tech-savvy individuals join in. Eventually, differentiating between projects with actual potential and those destined to fail becomes an impossible task.

Blockchain and crypto are great examples of how these hype cycles can negatively impact a technology. For years, it seemed that blockchain was being integrated into every piece of software and hardware,  getting to the point where the idea of a Bitcoin-mining toaster maybe didn’t sound that ridiculous.

As soon as the blockchain and crypto hype cycle cooled down and speculators started to move elsewhere, the ecosystem started to heal. Today, it is easier to find projects that are truly looking to disrupt through real-life applications, which is great news for founders and developers looking to build an actual product.

Last year saw the start of the AI hype cycles as news of DALL-E, Stable Diffusion, Midjourney, and ChatGPT started to go mainstream. With the models being easily accessible and offering real-life applications to casual users, the cycle is still strong. It is difficult to predict how long this cycle will last as tech giants and startups continue to invest heavily in the technology and to promise it will change everything (which it may very well do).

With blockchain technology already having survived its own hype cycle, developers are looking into ways to integrate it with AI to better address some of the drawbacks both technologies possess. This integration is especially promising when it comes to areas like data sovereignty, which have 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 & President Andrew Antar, Bennu Solution’s CISO John Godfrey, and Anker Innovations’ Head of Global Communications Eric Villines to talk about the latest AI cycle. The “Future of AI & Blockchain” panel was moderated by Grit Daily’s Editor John Biggs and touched on topics like the role that human empathy has to 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, make sure to watch the video.

By Juan Fajardo Juan Fajardo has been verified by Muck Rack's editorial team

Juan Fajardo is a News Desk Editor at Grit Daily. He is a software developer, tech and blockchain enthusiast, and writer, areas in which he has contributed to several projects. A jack of all trades, he was born in Bogota, Colombia but currently lives in Argentina after having traveled extensively. Always with a new interest in mind and a passion for entrepreneurship, Juan is a news desk editor at Grit Daily where it covers everything related to the startup world.

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