AI Fatigue Is Causing Chief Executives and Employees to Sour on the Promise of Artificial Intelligence
Australian Financial Review
ENRICHED
Details
- Date Published
- 27 May 2026
- Priority Score
- 1
- Australian
- Yes
- Created
- 28 May 2026, 06:01 am
Description
Artificial intelligence has been billed as the answer to every productivity problem. But in the face of rising costs, some tech leaders are changing their tune.
Summary
This reporting highlights a growing public and corporate disillusionment with AI, exemplified by adverse reactions to tech leaders like Eric Schmidt and concerns over escalating deployment costs. While primarily focused on economic 'AI fatigue' and productivity skepticism, the shifting public sentiment serves as a critical barometer for the social license required for frontier AI development. The article underscores a pivot from technical optimism toward pragmatic concerns regarding fiscal blowouts and the actual utility of large-scale models. Such shifts in stakeholder sentiment are pivotal for Australian and global policymakers tasked with navigating the governance of rapidly advancing technology amidst waning public trust.
Body
Amelia McGuireBusiness reporterMay 27, 2026 – 8.00pmThe surprise in the eyes of former Google chief executive Eric Schmidt when students at the University of Arizona loudly booed his speech mentioning the rise of artificial intelligence at a graduation ceremony earlier this month, was a public showcase of a changing sentiment that is starting to worry Silicon Valley.The billionaire businessman had seemingly expected to inspire the young audience by referring to Time magazine’s decision to name multiple “Architects of AI” as their person of the year, but instead was confronted by a chorus of derision. It was a theme echoed across numerous campuses in graduation season, when speakers raised the letters “AI”.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreSoftwareAIAnthropicUberMicrosoftNvidiaOpenAIGoogleAtlassianUniversity of New South WalesASX LimitedSharesCommonwealth BankSydneyAmelia McGuireBusiness reporterAmelia McGuire covers technology from the AFR's Sydney newsroom. She was previously the aviation, tourism and gambling reporter for The Sydney Morning Herald and The Age. Connect with Amelia on Twitter. Email Amelia at a.mcguire@afr.com.auFetching latest articles