04/08/2025
You can't code without AI, warns Nvidia chief Jensen Huang. DBS CEO Tan Su Shan, meanwhile, says that even she could be replaced by AI.
Surely, there should be no argument by now that AI is the game changer everyone has been predicting.
Companies must be doing so much better now they have got rid of the unnecessary humans, right? After all, they have taken the advice from AI gurus to jump in fast and get an edge over others in this existential race.
Well, the evidence from companies adopting AI in the past 18 months may paint a vastly different picture.
Earlier in June, research firm Gartner warned that more than 40 per cent of agentic AI projects would be cancelled by the end of 2027. Most damning perhaps is how it described technology companies contributing to the hype by engaging in “agent washing”.
Yes, it’s referring to the rebranding of existing products, such as AI assistants, robotic process automation (RPA) and chatbots, without substantial agentic capabilities as the next big thing – agentic AI. Gartner estimates only about 130 of the thousands of agentic AI vendors are “real”.
Indeed, the same reality check is needed for anything from vibe coding to graphic design to copywriting. The idea that you don’t need experts any more is clearly unsound.
Cutting-edge AI tools actually slowed down experienced software developers when they were working in codebases familiar to them, instead of supercharging the work, a study from non-profit METR revealed last month.
So, why is AI so good yet so dangerously unfit for real work so often? Why are people being laid off in the name of AI when AI clearly isn’t ready to take over?
Actually, the vastly different scenarios can be true at the same time. For starters, some companies that were gungho on AI have reassessed their earlier optimism.
It is also not true that AI is all hype. Businesses that have successfully adopted AI often already have a firm foundation, perhaps in simpler forms of process automation in the past. They also start small and win small before scaling up projects with real lessons learnt.
AI is making a difference in some businesses – the industry leaders – but most are still justifying their efforts in this grand experiment. Many efforts will be stuck in proofs of concept, mere experiments.
More in the Techgoondu commentary:
Despite the hype, AI is not bringing the rewards for businesses because they don't have the foundation or people in place.