In the last few years, AI captured the imaginations of technologists, business leaders, and investors alike. Forecasts about the transformative potential of AI in industries ranging from healthcare to retail, and even in our daily lives, have appeared everywhere. The excitement is palpable, but after attending several AI events and conferences, a common theme is emerging: AI fatigue.

Today, the gap between AI’s promise and its ability to deliver is becoming more apparent. Using the Gartner Hype Cycle as a framework, it feels like AI has been living in the "Peak of Inflated Expectations" for quite some time.

The market is flooded with possibilities, ideas, and discussions around AI, but there’s a noticeable lack of tangible, functional software making a real-world impact. This gap is causing frustration among those who attend events with the hope of building something meaningful. The people attracted to these spaces aren’t just idea enthusiasts; they’re builders — people eager to stop talking and start creating. And right now, there’s a growing sense that not enough is being built.

AI Fatigue and the Descent into the Trough of Disillusionment

As with many emerging technologies, the effects of the “Trough of Disillusionment” are being seen with AI. People have become overwhelmed by the theoretical possibilities and promises of AI, but have yet to experience its full transformative potential in practice. The buzz is starting to fade, not because AI doesn’t have merit, but because real-world applications haven’t caught up to the hype.

This momentary fatigue isn’t necessarily a bad thing. In fact, it’s a crucial stage for any technology. As Ethan Mollick pointed out in his insightful article AI in Organizations: Some Tactics, integrating AI into organizations is more complex than it appears. Many companies discover that successful AI adoption requires more than just bolting on new tools or running isolated projects. It demands new ways of thinking about how AI fits into the broader strategy of the business and product teams.

2025: A New Era for AI Innovation

By early to mid-2025, I believe we’ll see a resurgence in AI interest, but with a different energy. The hype cycle will subside, making room for more grounded, user-centered applications that have undergone significant iteration and testing. The people who have been learning at these events will start creating real, functional products that solve specific problems. Builders, who are frustrated now, will find ways to deliver real value with AI rather than relying on speculative projections.

This new era won’t be about AI for the sake of AI. There will be a shift where AI becomes an integrated feature of products rather than the headline. AI will start complementing existing systems, helping users solve complex problems in ways that weren’t possible before. And as these early-stage products prove their worth, larger enterprises — Google, Microsoft, Meta — will take notice and start investing in or acquiring those that stand out.

AI as a Growth-Driven Product, Not Just a Tool

One of the most significant changes will be how organizations begin to view AI as a growth-driven product rather than a mere resource tool. Right now, AI is often seen as a productivity enhancer or efficiency booster. But a shift toward AI as a driver of core business growth, becoming a key differentiator for organizations in competitive markets.

This transformation requires a holistic approach. As Mollick suggests, companies that successfully implement AI will need to do more than just adopt new technologies — they’ll need to rethink workflows, organizational structures, and even leadership. This is where product management becomes vital. AI should not be a bolt-on solution but an integrated element of an organization’s broader strategy. Product teams must focus on creating AI-driven products that genuinely enhance the user experience and deliver measurable value to the business.

The Need for Strong Product Teams and Consultants

For AI to move from hype to meaningful application, organizations need experienced product teams who understand both the technical and business sides of AI. Product managers will be essential in ensuring that AI-driven products solve real-world problems, meet user needs, and align with the long-term goals of the business.

At 8th Light, we’ve worked alongside organizations navigating these challenges. We’ve seen firsthand the importance of combining technical expertise with a deep understanding of business outcomes. Our interdisciplinary teams work closely with clients to ensure that AI is embedded into products in ways that are scalable, user-centered, and aligned with broader company goals.

By focusing on product design, strategy, and development, we’re helping companies move beyond AI fatigue. We know that real innovation doesn’t come from hype but from the hard work of building, testing, and iterating.

What’s Next for AI?

As we move through the Trough of Disillusionment, it's essential to stay focused on what really matters: building products that solve real-world problems. Although the excitement around AI may temporarily fade, this phase will lay the groundwork for the next wave of innovation. The companies that thrive will be those that embrace the long-term potential of AI, building products that deliver tangible value and real-world impact.

For tech leaders, now is the time to invest in AI thoughtfully. Focus on meaningful applications, surround yourself with strong product teams, and don’t shy away from the hard work of iteration. The winners in this space will be the companies that move from ideation to execution, creating AI-driven products that not only work but also matter.

At 8th Light, we’re excited to partner with companies in this transition. We’re committed to helping organizations move beyond the hype, building practical, user-centered AI solutions that deliver long-term value.

Moving Forward

If you’re ready to move beyond AI fatigue and start building AI solutions that create real impact, let’s connect. We’d love to help you navigate the next phase of AI development, ensuring your products are future-proof, scalable, and built to last.