AI: Next Industrial Revolution or Just Hype?

Published Date : 22/09/2025 

The release of ChatGPT by OpenAI in November 2022 has sparked a tech boom, but is AI truly the 'fourth industrial revolution' or is it overhyped? Explore the local and global developments in AI and the concerns surrounding it. 

Artificial intelligence has ignited a tech boom, with the world's leading companies seeing their valuations soar on the Nasdaq. This new era of human-like algorithms is reshaping industries and sparking discussions about the future of technology.

Here in Australia, a microcosm of Silicon Valley is forming, with 30,000 people now working in AI and numerous start-ups attracting significant venture capital. One such start-up, Apate, recently secured $2.5 million in seed funding. Founded out of Macquarie University, Apate partners with clients like the Commonwealth Bank to deploy AI-powered chatbots that disrupt global scamming operations.

Founder Dali Kaafar was inspired to create Apate after a 44-minute conversation with a scammer, during which he played a naive and confused role, wasting the scammer's time. Professor Kaafar developed a large language model (LLM) trained on real-life scam conversations, which has now evolved into tens of thousands of chatbots with distinct personalities and languages. These chatbots are posted online and on the dark web, attracting scammers and engaging them in lengthy, unproductive conversations.

Both in Australia and globally, the definition of AI is becoming more complex as the technology advances. Rob Nicholls, a senior research associate at the University of Sydney's Centre for AI, Trust and Governance, sees AI as a continuum of software development. He views the release of ChatGPT by OpenAI in November 2022 as a pivotal moment that brought AI into the mainstream.

In Melbourne, another AI start-up, Heidi Health, is making waves in the healthcare industry. Their AI-powered app listens to conversations between doctors and patients, generating notes and summaries. Founded less than four years ago, Heidi Health has already secured major clients globally, including hospitals in Australia and Petbarn, and recently received investment from Blackbird Ventures.

Ben Condon, Heidi Health's clinical director, believes the platform can significantly reduce the administrative burden on healthcare professionals. He left his full-time job as an emergency doctor to join the company, driven by the mission to make healthcare more sustainable and prevent clinician burnout.

The Australian tech industry's lobby group, the Tech Council of Australia (TCA), reports that all 180 of its members, including big names like Google and Atlassian, are using AI in some capacity. The TCA is advocating for increased investment to grow AI jobs to 200,000 by 2030. CEO Damian Kassabgi emphasizes the vast opportunities in AI, not just in start-ups but also in related areas like data centers.

However, some experts are raising concerns about the hype surrounding AI. In the US, privately held OpenAI is reportedly in talks to be valued at $500 billion, despite never turning a profit. Other companies, like Oracle, have seen their stock surge, with Oracle's CEO Larry Ellison briefly surpassing Elon Musk as the world's richest person. Yet, concerns persist that AI may not be as revolutionary as claimed, with a recent MIT report indicating that many companies struggle to use AI productively.

Dr. Nicholls believes there is hype around AI, driven by algorithmic trading and the allure of good news about AI stocks. He argues that true artificial general intelligence is still 20 to 30 years away and that current AI systems, while excellent at predicting trends and patterns, lack creative thought.

Belinda Barnet, an AI academic from Swinburne University, shares concerns about the industry's rapid pace and lack of regulation. She warns that the industry is presenting itself as the inevitable future, emphasizing the need for serious questions about the social impacts of AI.

As AI continues to evolve, the debate over its true potential and the need for ethical guidelines remains a critical topic of discussion. 

Frequently Asked Questions (FAQS): 

Q: What is the current state of AI in Australia?

A: In Australia, the AI sector is growing rapidly, with 30,000 people now working in AI and numerous start-ups attracting significant venture capital. Companies like Apate and Heidi Health are leading the way with innovative applications in scam prevention and healthcare, respectively.

Q: What is the significance of ChatGPT's release by OpenAI?

A: The release of ChatGPT by OpenAI in November 2022 is seen as a pivotal moment that brought AI into the mainstream. It made advanced AI technologies accessible to the general public, changing perceptions and driving further investment and development in the field.

Q: What concerns do experts have about the AI industry?

A: Experts like Dr. Nicholls and Belinda Barnet raise concerns about the hype surrounding AI, the lack of creative thought in current AI systems, and the need for ethical guidelines. They also worry about the industry's rapid pace and the potential social impacts of AI.

Q: How is AI being used in the healthcare industry?

A: AI is being used in healthcare to automate administrative tasks and improve patient care. For example, Heidi Health's AI-powered app listens to conversations between doctors and patients, generating notes and summaries, which can significantly reduce the administrative burden on healthcare professionals.

Q: What is the Tech Council of Australia's goal for AI jobs?

A: The Tech Council of Australia aims to grow AI jobs to 200,000 by 2030. They are advocating for increased investment, including from Australia's superannuation funds, to support this growth and capitalize on the opportunities in AI and related areas like data centers. 

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