AI Mania hits the brakes

Extracted Attributes

• Analogy

  Development of self-driving technology (Waymo's deterministic approach)

• Event Type

  Market correction in AI industry

• Primary Cause

  MIT Generative AI study revealing 95% corporate AI pilot failure rate

• Industry Shift

  From Large Language Models (LLMs) to Small Language Models (SLMs) and Vertical AI Applications

• Market Sentiment

  Trough of Disillusionment

• Most Successful Applications

  Back-office optimization

Timeline

• OpenAI's ChatGPT debuts, fueling the initial AI excitement and the subsequent 'AI Mania'. (Source: web search)

  2022-12-01

• The AI boom propels tech stocks to unprecedented highs throughout late 2023 and early 2024. (Source: web search)

  2023-10-01

• The 'AI Mania' begins to unravel, marking the event 'AI Mania hits the brakes' as concerns about long-term profit sustainability emerge. (Source: web search)

  2025-06-01

• An influential MIT Generative AI study is released, revealing that 95% of corporate AI pilots fail, triggering a significant market shift. (Source: related document, web search)

  2025-06-01

• Meta implements an AI hiring freeze, instituted by CEO Mark Zuckerberg, signaling the market correction. (Source: related document)

  2025-06-01

Test Track

Test Track is a high-speed slot car thrill ride manufactured by Dynamic Attractions located in World Discovery at Epcot, a theme park at the Walt Disney World Resort in Bay Lake, Florida. Designed by Walt Disney Imagineering in partnership with General Motors (GM's Chevrolet marque during its second era), the ride is a simulated excursion through the rigorous testing procedures that General Motors uses to evaluate its concept cars, culminating in a high-speed drive around the exterior of the attraction. The attraction soft-opened to the public, as Test Track 1.0, on December 19, 1998, after a long delay due to problems revealed during testing and to changes in design. As a result, the attraction officially opened on March 17, 1999. Test Track replaced the World of Motion ride, which closed three years earlier in 1996. Originally, guests rode in "test vehicles" in a GM "testing facility" through a series of assessments to illustrate how automobile prototype evaluations were conducted. The highlight of the attraction is a speed trial on a track around the exterior of the building at a top speed of 64.9 miles per hour (104.4 km/h) making it the fastest Disney theme park attraction ever built. Test Track 1.0 closed for refurbishment on April 15, 2012, and re-opened on December 6 in its second edition, or Test Track 2.0, sponsored by Chevrolet instead of General Motors as a whole. Guests now design their own car in the Chevrolet Design Studio. Then they board a "Sim-Car" and are taken through the "digital" testing ground of the "SimTrack". Throughout the ride, guests see how their designs performed in each test. After the ride, guests can see how their car did overall, film a commercial, race their designs, and have a picture taken with their own virtually designed vehicle with a chosen backdrop in the background. Test Track is located in World Discovery, formerly known as Future World East. On September 9, 2023, Disney announced that Test Track would be receiving a third retheming inspired by the original World of Motion ride. Test Track 2.0 closed permanently on June 17, 2024 to make way for the ride's third iteration, Test Track 3.0, which soft-opened to the public on July 20, 2025. General Motors returned as the attraction's sponsor instead of their Chevrolet division when the ride reopened on July 22, 2025. The updated attraction showcases new vehicle technology using effects and narration, featuring a House of the Future, a forest drive, and a futuristic projection dome. The high-speed loop remains the highlight, though the "Sim-Car" technology has been completely removed. The ride, entrance plaza, and queue features music composed by Zain Effendi; the EPCOT: Test Track soundtrack was released on Walt Disney Records on August 8, 2025.

Web Search Results

• The Great AI Re-evaluation: What Happened and Why It Matters

  The current tech sell-off is a direct consequence of the market's re-evaluation of AI's immediate commercial viability. For months, the promise of generative AI, exemplified by the debut of OpenAI's ChatGPT in late 2022, fueled an aggressive buying spree in AI-related stocks. Companies like Nvidia (NASDAQ: NVDA) saw their valuations soar, with its stock surging over 1,000% since autumn 2022. However, this "AI Mania" began to unravel in mid-2025 as concerns about long-term profit sustainability [...] The artificial intelligence (AI) boom, which propelled tech stocks to unprecedented highs throughout late 2023 and early 2024, is now facing a significant reality check. A growing wave of skepticism regarding the sustainability of the AI frenzy, largely ignited by a recent MIT report highlighting limited returns on generative AI investments, has triggered a notable downturn across the tech sector. This recalibration is prompting investors to aggressively re-evaluate high-flying AI-related [...] The sell-off indicates a shift in investor sentiment from unbridled enthusiasm to a more cautious and strategic approach, scrutinizing the sustainability of high valuations and the practicality of business models, particularly for generative AI. This period is seen by some as a "healthy reset" for the AI sector, rather than an end to its growth. A key concern highlighted by the "AI Mania" is the unprecedented concentration of the U.S. stock market, where the top 10 stocks, including major AI

• AI in the workplace: A report for 2025 - McKinsey

  We are at a turning point. The initial AI excitement may be waning, but the technology is accelerating. Bold and purposeful strategies are needed to set the stage for future success. Leaders are taking the first step: One quarter of those executives we surveyed have defined a gen AI road map, while just over half have a draft that is being refined (Exhibit 7). With technology changing this fast, all road maps and plans will evolve constantly. For leaders, the key is to make some clear choices [...] Chapter 4examines how companies risk losing ground in the AI race if leaders do not set bold goals. As the hype around AI subsides, companies should put a heightened focus on practical applications that empower employees in their daily jobs. These applications can create competitive moats and generate measurable ROI. Across industries, functions, and geographies, companies that invest strategically can go beyond using AI to drive incremental value and instead create transformative change. [...] Business leaders are trying to meet the need for speed by increasing investments in AI. Of the executives surveyed, 92 percent say they expect to boost spending on AI in the next three years, with 55 percent expecting investments to increase by at least 10 percent from current levels. But they can no longer just spend on AI without expecting results. As companies move on from the initial thrill of gen AI, business leaders face increasing pressure to generate ROI from their gen AI deployments.

• Hardware is eating the world - Deloitte

  View in Article 8. Shira Ovide, “This $400 toothbrush is peak AI mania,” _The Washington Post_, April 5, 2024; David Niewolny, “Boom in AI-enabled medical devices transforms healthcare,” _NVIDIA Blog_, March 26, 2024. View in Article 9. Marc Andreessen, “Why software is eating the world,” Andreessen Horowitz, August 20, 2011. View in Article 10. John Thornhill, “How hardware is (still) eating the world,” _The Financial Times_, February 15, 2024. [...] After years of “software eating the world,” it’s hardware’s turn to feast. We previewed in the computation chapter of Tech Trends 2024 that as Moore’s Law comes to its supposed end, the promise of the AI revolution increasingly depends on access to the appropriate hardware. Case in point: NVIDIA is now one of the world’s most valuable (and watched) companies, as specialized chips become an invaluable resource for AI computation workloads.1 According to Deloitte research based on a World

• Massive AI Bets, Slowing Economy Could Lead to Stock Market Crash

  In fact, analysts are counting on the AI mania to fuel the market even as the White House's chaotic trade policy eats into corporate America's profit potential. Earnings for S&P 500 companies are projected to grow 8% this year, a fairly average showing for an anything-but-average year. What is notable is just how much of that growth relies on the tech sector: Silicon Valley companies are expected to boost their earnings by 21% — the highest growth of any sector. By contrast, profits for [...] momentum are even weaker than they were at the lowest point of the sell-off. This combination leaves the stock market in a precarious spot: Either AI needs to live up to the hype, or investors could be looking at a gnarly second half of the year. [...] be wrong. The freight train that is AI adoption — a three-year story of rapid innovation and progress — could collide with a massive wall from historic tariffs, high interest rates, and low consumer confidence.

• 2025: The State of Consumer AI | Menlo Ventures

  more striking than in mental health. Despite claims that AI is replacing therapists, only 21% of the 41% of U.S. adults who sought mental health support in the past six months turned to AI—only 9% of the total population.That mismatch between hype and behavior shows up across wellness. Of the 71% of people who researched health questions, only 20% used AI to help; of the 69% who navigated the healthcare system, only 11% used AI; and although 62% of adults planned workouts, only 18% did so with [...] While most Americans regularly engage in health-focused activities, only 14%use AI to help. When they do, it’s mostly for structured, data-driven tasks like tracking nutrition and vitals, not for jobs that require empathy, nuance, or trust. The gap between task frequency and AI adoption reveals a goldmine of untapped demand. People want help with these tasks; they’re just waiting for the right tool to show up.The Mental Health Perception Gap:Nowhere is the disconnect between hype and behavior