The article explores the current landscape of AI in corporate strategy, comparing it to the dot-com boom where companies overstated their technological capabilities. Many businesses label their products as AI simply because they use language models or third-party APIs, creating a confusion that diminishes the real value of true AI innovation. As scrutiny from investors increases by 2025, companies relying on misleading AI claims may face significant risks. Dr. Uri Yerushalmi emphasizes the essential distinction between using existing AI tools and developing proprietary AI technologies.
At the height of the dot-com boom, tech companies were adding '.com' to their names just to inflate valuations. Now, it's 'AI.' In almost every pitch deck and press release these days, AI shows up somewhere, somehow.
The term 'AI' has been diluted. Any app using a language model now tends to label itself as an AI product. There's a clear distinction between companies that simply use AI tools and those that are actually developing proprietary AI technologies.
Yerushalmi points to a systemic mislabeling problem: Companies and consumers alike confuse AI with language models. But LLMs are just one aspect of the broader AI landscape.
Using an API is not the same as building an intelligent system. When companies stretch their AI claims beyond reality, the fallout goes beyond embarrassment.
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