Coming down from the peak of the Generative AI hype cycle, and where we go from here.

FM (Friday Morning) Reflection #4

We’re finally coming off the peak of the first hype cycle with Generative AI, and I couldn’t be more thrilled. It’s time to do less talking and more doing with this once-in-a-generation leap in technology.

How do I know we’re coming off the peak of the hype cycle? There has been a recent uptick in the media about lackluster profits in GenAI businesses, leaders in the chip industry losing their footing, corporate managers fretting about the long road to ROI, and how the impact of GenAI has been overblown.

Here’s the reality: AI isn’t going anywhere.

If you look at where investors are putting their future bets – in sectors like utilities and energy, for example — AI is clearly reshaping demand and the market. The New York Times reported yesterday that utilities were the 2nd best performing S&P 500 sector so far this year, gaining 15.5%. Energy compa…