Part 18/23:
The disconnect between model capability and application deployment remains a significant factor. Companies that focus on use-case specific applications with deep understanding of customer processes are outperforming and creating large market opportunities.
The Contradiction: Bubble or Real Growth?
While markets sometimes seem overheated, the broad consensus among investors is that AI is not a bubble but an underhyped revolution. Capex in AI is compared to the industrial revolution, and investment levels are still a fraction of historical transformative periods. For instance, current AI investment is around 3-4% of GDP, far below the 20-50% during past revolutions.