That doesn’t mean that the slide will absolutely continue. There may be some fresh injection of hype that will push investor confidence back up, but right now the wind is definitely going out of the sails.
The core issue, as the Goldman - Sachs report notes, is that AI is currently being valued as a trillion dollar industry, but it has not remotely demonstrated the ability to solve a trillion dollar problem.
No one selling AI tools is able to demonstrate with confidence that they can be made reliable enough, or cheap enough, to truly replace the human element, and without that they will only ever be fun curiosities.
And that “cheap enough” part is critical. It is not only that GenAI is deeply unreliable, but also that it costs a truly staggering amount of money to operate (OpenAI are burning something like $10 billion a year). What’s the point in replacing an employee you pay $10 an hour to handle customer service issues with a bot that costs $5 for every reply it generates?