The ugly economics of consumer AI

The development of consumer AI has slowed significantly in recent years due to the high costs associated with deploying and maintaining AI systems, including the need for large amounts of data, expensive hardware, and significant personnel costs. This has led to a shift away from research and development in consumer AI, with many companies choosing to focus on more profitable areas such as enterprise AI. The high costs are driven by the need for large amounts of data, which is typically collected from users, and the requirement for expensive hardware to process and store that data. Additionally, the development and maintenance of AI systems require significant personnel costs, including the need for highly skilled engineers and data scientists.