Good morning.
Kudos to my colleague Jessica Mathews, who started the New Year by assembling the views of smart money investors on generative AI prospects for 2024. You can read her full report for Fortune’s Term Sheet newsletter here. But for the time-crunched, here’s my summary: AI has enormous potential to transform business and society, but don’t expect a straight-line climb to the sky. This year is likely to be one of retrenchment, as investors discover many of the companies they threw money at don’t have a workable business model, and many big companies find that the cost of compute outweighs the benefit. And of course, there are also the Four Horsemen of the AI-pocalypse: Data Bias, Data Security, Copyright Infringement, and Hallucination.
