I’m an AI software engineer and I predict that most AI startups being funded today will die

• An AI engineer says most people don’t understand what AI can really do and what it can’t, yet.
• Those working in AI understand when startup claims are realistic and when they’re mostly hype.
• He shares how he evaluates which startups he would use, invest in or work for, and which to avoid.

This essay is based on a conversation with an AI engineer who currently works for an AI legal startup and asked not to be identified because he is not authorized to speak about his work experiences. Insider has verified his employment.

Generative AI is just way, way overhyped right now and that means that many of the AI startups getting VC funding today are going to fail. This is going to be similar to what happened in crypto. There are going to be selective applications from startups that work well and can build businesses, but maybe 70-80% of them are going to die in the end.