The Generative AI Industry is Flawed!/strong>
Authors:-Isha Syed, Aryan Purohit, Yash Malusare
Abstract-Generative Artificial Intelligence (GenAI) has evolved rapidly, creating transformative opportunities across sectors, particularly in healthcare and marketing. Despite the promise of improved patient care, streamlined medical workflows, and enhanced customer engagement, GenAI faces significant challenges. Key obstacles include high computational costs, data-privacy concerns, and ethical accountability in content generation. Moreover, the open-source initiatives by leading firms like Meta have intensified competition, pushing GenAI models toward commoditization, impacting revenue structures and sparking a “race to the bottom” in pricing. The market is further complicated by monopolistic dependencies on critical hardware providers, particularly Nvidia, which dominate GPU supplies essential for AI training. With a rapidly growing market projected to reach trillions by 2030, the industry must navigate these barriers to realize the full potential of GenAI. This study explores GenAI’s current applications, fiscal and ethical challenges, and the strategic imperatives needed to foster sustainable, profitable growth within an increasingly crowded and commoditized industry landscape.