In this installment of the Mind Matters News podcast, host Robert J. Marks begins a conversation with economics professor and author Gary Smith about the hype of generative AI and its impact on the market. Smith is the Fletcher Jones Professor of Economics at Ponoma College and a frequent contributor to Mind Matters News. Smith argues that generative AI, embodied in services like ChatGPT and Google’s Gemini, exhibits many characteristics of past market bubbles, including excessive hype, lack of profitability, and unrealistic expectations. Smith holds that generative AI models have limited practical economic value. They may be good at finding statistical patterns but struggle to distinguish meaningful, useful correlations from coincidental ones. Smith describes the fundamental challenge of teaching machines true understanding that goes beyond mere pattern recognition. A number of examples and stories are shared throughout. This is Part 1 of a two-part conversation.

Additional Resources

• The AI bubble is looking worse than the dot-com bubble. Here’s why – Market Watch
• The Promise of Artificial General Intelligence is Evaporating – Mind Matters News