Is The Generative AI Bubble About To Burst?

Artificial intelligence (AI) is disrupting nearly every industry imaginable. In some instances, it’s improving there’s areas, and others, not so much. One thing is seemingly clear: AI is here to stay. 

See More: A Healthier Alternative to Coffee & Energy Drinks: Pureboost Gives You Energy Without The Burnout and Exhaustion

This leads to the million-dollar question: Is the generative AI bubble about to burst? It’s happened before — most recently with crypto — and it’ll happen again. The question is whether the AI space will be spared. 

Led by ChatGPT parent company OpenAI and its $10 billion investment from Microsoft Corp., funds are flowing into the AI industry at a record pace. And it’s not just venture capital. GenesisAI, for example, is building a marketplace for AI products and services to help any business integrate AI into their existing model. To date, it has raised over $5 million from thousands of retail investors. 

Why The Concerns About A Bubble?

With the AI frenzy in full force, it’s natural to have concerns about a bubble. Rapid advancements have many people worried that the industry will outpace itself, resulting in a crash. It’s often difficult to determine whether a specific industry is in a bubble. Crypto-

To prevent a bubble, generative AI technology and the companies that develop it must address concerns such as these.

Don’t Miss: The House-Printing Robot Shaking Up a $7.28 Trillion Industry

Intellectual Property Issues

One of the biggest concerns about generative AI is the legal and intellectual property issues surrounding ownership and control of the content it produces. When AI generates content, it's often challenging to determine who owns the resulting work, leading to disputes over intellectual property rights. 

Regulation

Regulation is another pitfall of generative AI, as it could limit the technology's use and make it more challenging for businesses to innovate. As AI continues to grow in popularity and become more prevalent, policymakers and regulatory bodies are becoming increasingly concerned about the ethical implications and potential risks associated with the technology. This is happening in many parts of the world, with the United States likely to take action in the near future.

To stay updated with top startup news and investments, sign up for Benzinga’s Startup Investing & Equity Crowdfunding Newsletter

Safety and security

Generative AI raises many concerns about safety and security, as the technology could be used for malicious purposes. While generative AI has the potential to revolutionize many industries — and already has — it also has the 

potential to be misused, leading to a range of safety and security concerns.

Final thoughts

Venture capital firms have invested billions of dollars in AI companies over the past 12 months, with generative AI technology somewhere near the top of the list. But to protect the bubble and avoid a crash similar to the one that resulted in a crypto winter, these companies must now scale with speed and efficiency. 

See more on startup investing from Benzinga.

• Collaborative Robots Startup Using Teams Of AI-Powered Drones To Make Flying Safer

• AI Startups Turn to Retail Investors To Fund the Growth of the $1.59 Trillion Artificial Intelligence Market