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The AI backlash is picking up steam, and it's worth paying attention to what's happening under the surface.
For months, the AI hype machine pumped valuations to astronomical levels. Every startup with "AI" in the pitch deck attracted venture money like moths to a flame. But now? The sentiment is shifting. Users are getting tired of AI-generated everything. Privacy concerns are bubbling up. Regulatory scrutiny is intensifying across major markets.
What does this mean for the space? The gold rush mentality is cooling down. Projects banking solely on AI novelty without real utility are starting to face pushback. Meanwhile, the ones solving genuine problems—whether that's data privacy, decentralized AI models, or infrastructure—are standing out more clearly.
The Web3 crowd should be watching this closely. Because when AI integration happens on-chain, it'll need to be different. Not just hype. Real value. Real trust.
The shakeout has begun.