The case that generative AI is a con

Aug 28, 2026

Generative AI is being sold on hype it cannot deliver, a bad sign for investors betting on the sector and for workers told they must adopt it or fall behind.

  • The pitch — AI will cure cancer and replace all jobs — is far ahead of what the products actually do.
  • Underneath the marketing it is expensive, unreliable cloud software that loses money.
  • The financial story is being oversold too, with sellside analysts, governments, and the press amplifying claims instead of checking them.
  • The rollout is described as the biggest forced push of a technology in history, pressuring people to use tools they never asked for.
  • The fear angle is the point: scare workers about their jobs and adoption numbers follow.

Outlook: Expect more scrutiny of AI companies' costs and profits, and a harsher reckoning if the spending does not start paying off.

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