The current standing of the narrative world is one awash in hyperbolism. Every day there is a wealth of new bombshell findings, groundbreaking revelations, or unforeseen predictions that recontextualize how we view the world. By exaggerating statements beyond the realm of reality, people are employing hyperbole less as a literary device and more as a marketing scheme to best convey their message. In this sense, these hyperbolic descriptions and reactions have become a must-have in the social media space. This is especially important, as in a modern world where we can use Artificial Intelligence, “niche-ified” buzzwords are further defining the main stage, and it’s one where our traditional measures of articulation fail to catch the media frenzy. What was once a simple English-class term, used in colorful prose, now contains the power to move markets.
I sense that today’s recontextualized hyperbole is meant to be taken literally so as to gain a measure of attention, and in more frequent cases, action. The Internet bubble of the ‘90s was created by hyperbole, fueling historic levels of investment in technology companies vying to take over the rapidly emerging digital world. Back then, we used to joke that you could get a business plan funded through a scribble of crayon on a napkin; the hyperbole was being taken literally. Then, as many know, the bubble burst. Stocks and options, once valued at a king’s ransom, became worthless. In 2001, you could hear the doors slamming in Silicon Valley, Boston’s tech centers, and especially Wall Street, as companies and individuals reeled from these massive write-downs. After the implosion, however, through some measure of hindsight, we can see that tech giants arose from the ashes. New companies like Amazon, eBay, Meta, and Google were born, while explosive growth was tracked from existing ones like Microsoft, Apple, Cisco, et cetera.
All of this helped shape this digital world into what we know it as today. What was shed during the burst was the exaggeration, the part that was not meant to be taken literally. It is easy to forget that there are two aspects to hyperbole: the process of embellishing, and the reality that is embellished. The problem with the bubble was that the exaggeration portion was an embellishment of real companies, real people, and actual investments that were so callously cast aside by a market that never existed outside of the hype. Having lived through that era, I can tell you that the hyperbole-driven market expectations were completely and entirely unrealistic, yet many believed them whole-heartedly and made important life decisions based on them
Naturally, I can’t help but draw parallels to the current AI revolution, and to the infamous “Tulip Mania” of the 17th century. Have we truly learned anything from our past experiences? Honestly, I genuinely think we do know much more this time, and furthermore, I think there are many individuals in favor of the hype and are willing to hedge their bets against the resultant carnage. They understand the game and arbitrage the result. There will be new AI companies and the wild growth of existing ones who already take advantage, but make no mistake, this bubble too will burst, and the outcomes will be equally as tangible. As a matter of fact, I’d say we are already seeing some early market corrections.
Gartner’s famous “Hype Cycle” tracks the tech curve from a new market’s hyperbolic leading edge, all the way through the “trough of disillusionment,” when reality sets in. (Sidenote: I love that term). Recent surveys in AI have shown that as much as 96% of these AI projects are failing, and not surprisingly, failure to meet these sky-high expectations is seen as the number one reason. Hyperbole is in action.
Strong leadership and decision-making require a valued understanding of the past and its teachings. Hyperbolic market conditions and new technologies, especially AI, are no exception, and we must listen and learn to avoid being caught in the exaggeration bubble of the future.