Parmy Olson, a Bloomberg Opinion columnist covering technology, is out with a must-read post.

Her column says recent surveys indicate a cooling of enthusiasm for AI in the business world.

Concerns about accuracy, expenses, and data protection have led many companies to scale back their adoption of cutting-edge AI solutions.

Lucidworks reports that the percentage of global firms planning to boost AI spending in the coming year has dropped from 93% to 63%. In the US, AI adoption remains low, with only 5% of companies utilizing the technology, according to Census Bureau data.

This trend aligns with the "trough of disillusionment" phase in Gartner's Hype Cycle, suggesting a period of reassessment following initial excitement.

Leading AI companies like OpenAI and Google continue to set ambitious goals, from generating wealth for humanity to addressing global challenges like climate change and disease. However, these lofty aspirations may be disconnected from practical business needs.

Implementing broad-spectrum AI across an entire workforce often proves challenging. Tech giants promoting AI tools should set realistic expectations about adoption timelines and focus on specific, targeted applications.

AI currently excels in specialized domains rather than as a universal solution. Business leaders who recognize its potential for niche applications, rather than viewing it as an all-encompassing answer, are more likely to leverage AI effectively within their organizations.

The bottom line is that AI's practical business adoption is facing a reality check.

While the technology shows promise, it's not a universal solution.

Companies are becoming more cautious and selective in their AI investments, focusing on specific, targeted applications rather than broad implementation.

For AI to be truly useful in business, leaders need to recognize its strengths in niche areas and avoid treating it as a cure-all technology. This shift represents a more mature, pragmatic approach to AI adoption, moving away from hype and towards finding concrete, valuable use cases.

You can read Olson's full opinion column here.

—Marc