AI Hype: Only 2% of Companies Will Survive, Says Bitpanda CEO
The chief executive of trading platform Bitpanda, Eric Demuth, has predicted that only 2% of companies capitalizing on the hype surrounding artificial intelligence (AI) will survive. While acknowledging the potential of AI and the numerous investment opportunities in the sector, Demuth compared the current cycle to previous gold rushes, stating that most companies will ultimately fail. He cited examples such as blockchain, NFTs, and web3, which experienced similar hype followed by a decline in interest. However, despite this bearish prediction, Bitpanda itself has launched a $10 million division dedicated to AI projects, including personalized investing features and a wealth manager for its platform.
Bitpanda’s AI Endeavors
Bitpanda has already been using AI tools for internal operations such as fraud prevention and is now venturing into developing AI-powered products for retail customers. Demuth emphasized that during the downturn of tech hype cycles, serious players have the opportunity to build and innovate while others jump onto the next trend. In this context, he referred to crypto enthusiasts transitioning into the field of AI. Demuth also highlighted that this is an ideal time for banks and legacy financial institutions to catch up with financial innovation in the crypto market since there is a lull in demand and increased regulatory clarity.
Crypto Market Integration
Demuth explained that now is the opportune moment for banks to integrate crypto services and build solutions since building during peak demand would be too late. He mentioned that larger banks were previously held back by regulatory uncertainty but now have more clarity with the introduction of the EU’s crypto bill and regulations in other jurisdictions. Earlier this year, Bitpanda partnered with Coinbase to provide institutions with a back-end solution for offering crypto services to their customers.
Hot Take: Balancing AI Hype and Realistic Expectations
While the hype surrounding AI is undeniable, it’s important to approach it with caution. As with any emerging technology, there will be winners and losers. Bitpanda’s CEO’s prediction of only 2% of companies surviving may seem pessimistic, but it serves as a reminder that not all ventures will succeed in the long run. However, this doesn’t diminish the potential of AI to revolutionize various industries. It’s crucial for companies to carefully navigate the AI landscape, focusing on practical and sustainable solutions rather than getting caught up in the hype. By doing so, they can position themselves as part of the select few that thrive in the evolving world of AI.
Source: Decrypt
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