As scammers look for new ways to exploit unsuspecting victims, they have shifted their attention from cryptocurrency to AI. But what exactly is the AI scam, and how does it work?

At the heart of the AI scam is the mislabeling of a new technology called Large Language Models (LLMs). These models are interesting and potentially powerful, but they are also very limited. Unfortunately, two major lies are being spread about LLMs.

First, scammers are associating LLMs with Artificial Intelligence, a nebulous term with no agreed-upon definition. This allows them to make preposterous claims about the capabilities of LLMs, which are nothing more than science fiction. The second lie is projecting exponential growth for LLMs. This is a tired old trope that technologists have been using for decades, but precisely zero technologies have actually reached the promised singularity of exponential development. LLMs, like most new tech, will likely follow an S-shaped development curve.

The purpose of these lies is to fuel a hype cycle that will in turn facilitate any number of scams and grifts. The sociopaths who were grifting off cryptocurrency have moved on to AI, and many people who aren't careful are likely to be scammed by them.

However, if we remove the fictional AI label and the absurd claims of exponential development, we can start to get a more realistic idea of what LLMs are actually capable of. Much like cryptocurrencies and blockchain, LLMs are a genuinely powerful technology. But until we're through the hype-scam phase of the development cycle, it's unlikely that much of their potential will be realized.

As a technology consultant, by cutting through the hype and understanding the true capabilities of LLMs, we can help protect others from falling victim to these scams.