Top Economist's 'Overhyped' AI Stance Signals Investor Reckoning

Prominent economist Steve Hanke has amplified skepticism around large language models, aligning with Meta's Chief AI Scientist Yann LeCun. This move marks a significant inflection point, elevating the debate beyond technical circles into mainstream economic discourse. By branding AI as 'overhyped and potentially dangerous,' Hanke lends economic credibility to technical critiques, challenging the dominant market narrative pushed by generative AI's biggest proponents and signaling a potential shift in how investors perceive the technology's immediate value.

This growing chorus of skepticism puts direct pressure on firms whose valuations are tethered to generative AI hype, such as OpenAI and its backers. The alignment empowers corporate boards and investors to demand more demonstrable ROI, potentially slowing enterprise adoption cycles. This development signals a market maturation where speculative potential is sidelined for tangible value creation, raising the stakes for companies that have yet to prove a clear path to profitability and defensible moats beyond foundational models.