An analyst firm predicted Tuesday that generative artificial intelligence will face a reality check next year. As a result of fading hype around the technology, rising costs, and growing calls for regulation, the technology is likely to slow down.

As part of its annual roundup of predictions about the future of technology, CCS Insight offered several predictions about what lies ahead for AI, a technology that has attracted both praise and criticism.

CCS Insight’s forecast for 2024 is that generative AI “gets a cold shower” as the cost, risk, and complexity involved “replace the hype” that surrounds it.

According to Ben Wood, chief analyst at CCS Insight, “right now, everyone is talking about generative AI, Google, Amazon, Qualcomm, Meta.”

“We’re big advocates of AI. We believe it will have a huge impact on the economy, society at large, and productivity,” Wood said. 

We think generative AI has been overhyped in 2023, and there are a number of hurdles to overcome before it can be brought to market.

OpenAI’s ChatGPT, Google Bard, Anthropic’s Claude, and Synthesia rely on huge amounts of computing power to run their complex mathematical models that determine what responses to generate to address user prompts.

In order to run AI applications, companies must acquire high-performance chips. For generative AI, large companies and small developers alike rely on GPUs from U.S. semiconductor giant Nvidia to run their AI workloads.

Amazon, Google, Alibaba, Meta, and OpenAI, among others, are now designing their own AI chips for running their AI programs.