⤴ Generative AI: Bridging Hype and Opportunity

Hype, Hope, and the Pushback I Didn’t Expect

At a recent social gathering in Los Angeles comprised of journalists, hollywood writers, ex-Disney and current YouTube execs, I found myself in a conversation that caught me off guard. As someone who spends a lot of time thinking about the potential of Generative AI, I assumed most people would share my enthusiasm—or at least my curiosity. Instead, I was met with skepticism. Eek!

The concerns were real: fears about job loss, questions about whether AI is truly useful, and even a sense of distrust about where this technology is taking us. It wasn’t hostility—it was hesitation, methinks. And it made me realize something important: while the tech world is sprinting ahead and taking me along with it, many people and organizations are still standing at the starting line, unsure whether to join the race.

This disconnect is something we need to address.

Generative AI isn’t just a buzzword; it’s a tool that will reshape industries, redefine education, and create new opportunities for economic growth. But for that to happen, we need to bring everyone into the conversation—business leaders, educators, government officials, and yes, even skeptics. Even more so in my region of Palm Springs-Coachella.

The Current State of Generative AI Adoption

Generative AI has been making headlines for a while now, and tools like Suno, Claude, Gemini, Sora and of course ChatGPT are pushing the boundaries of what’s possible. These tools can do everything from generating realistic voiceovers to summarizing complex documents and even assisting with creative projects. They’re powerful, accessible, and increasingly integrated into workflows across industries.

But here’s the thing: adoption is still uneven. According to recent studies, only about 25% of U.S. companies have integrated AI into their operations. The rest are experimenting cautiously or waiting to see how things play out.

In Palm Springs-Coachella, this hesitation seems to be even more pronounced. Our economy is built on a unique mix of sectors—hospitality, healthcare, agriculture, education, and local government. Each of these sectors has its own challenges and opportunities when it comes to AI adoption. For example:

• Hospitality could use AI to enhance guest experiences or streamline operations, but concerns about job displacement often slow adoption. Then again, most folks I speak to in the industry don’t believe Gen AI will affect them — “I mean, AI won’t help make up the room or deliver pancakes to your table!” Fair enough.

• Healthcare is exploring AI for diagnostics and patient care, but privacy and regulatory hurdles remain significant. To their credit, the healthcare industry is leading the AI experimental adoption.

• Agriculture could benefit from AI-driven tools for water management and crop optimization, but many landowners are wary of the upfront costs, technical complexity and the training required to integrate.

• Education is experimenting with AI to personalize learning, but there’s still a lot of uncertainty about how to integrate it effectively. Teachers are struggling with how to incorporate AI in the classroom while students are already using ChatGPT to do their homework and write their college applications. I have a deeper dive about this in an upcoming issue.

The potential is there, but the path forward isn’t always clear.

Where Are We in the Gartner Hype Cycle?

If you’ve ever seen the Gartner Hype Cycle, you know it’s a great way to understand how new technologies evolve. Right now, Generative AI seems to be somewhere between the "Peak of Inflated Expectations" and the "Trough of Disillusionment."

The "Peak" was all about excitement—AI was going to revolutionize everything overnight. But now, as the technology matures, we’re starting to see its limitations. AI isn’t perfect. It makes mistakes, it requires human oversight, and it raises ethical questions that we’re only beginning to grapple with.

This isn’t a bad thing. The "Trough of Disillusionment" is where the real work begins. It’s where we move past the hype and start focusing on practical, meaningful applications. For regions like ours, this is an opportunity to lead—not by chasing the next big thing, but by figuring out how to use AI to solve regional problems, help small business with adoption and reskill and upskill our local workforce.

Is Generative AI Innovation Slowing?

There’s also been some talk lately about whether Generative AI innovation is slowing down. Some argue that we’ve hit a plateau in terms of groundbreaking advancements. The focus now seems to be shifting from creating new tools to refining and implementing the ones we already have.

But this isn’t a sign of stagnation—it’s a sign of progress. The real challenge isn’t building more advanced models; it’s figuring out how to integrate them into industries in ways that create value.

For Palm Springs-Coachella, this shift is actually an advantage. We don’t need to invent the next Claude or Gemini. What we need is to apply these tools to our unique challenges—whether that’s optimizing water usage in agriculture, improving patient outcomes in healthcare, or creating multilingual content for our diverse population

As I’ve repeated on countless occasions, we don’t need to create the next billion-dollar startup, but how great would multiple $100m, $10m, $1m successes be for our AI and startup ecosystems? And counter to what many may think, we already have the infrastructure needed to make this happen - it’s called quality of life.

Workforce Development vs. Economic Development

This brings us to a critical question: how do we balance workforce development with economic development?

Generative AI has the potential to diversify our local economy in exciting ways. It could attract startups and businesses looking for a lower-cost alternative to urban tech hubs. It could also create new industries, from AI-powered media production (hello sunshine) to AI accelerators and centers of excellence.

But here’s the catch: economic development without workforce development is a recipe for inequality. Many jobs in our region are at high risk of disruption or displacement from AI. Without upskilling and reskilling programs, we risk leaving large segments of our population behind.

This is why I believe so strongly in initiatives like an AI Hub or Center of Excellence. These aren’t just buzzwords—they’re critical infrastructure for the future. By offering training programs, certifications, and resources, we can ensure that our workforce is prepared for the jobs of tomorrow. And by fostering collaboration between sectors, we can create an ecosystem where innovation thrives. The State of Georgia has a K-16 AI curriculum — we should adopt something similar

The Pushback: A Chance to Build Trust

The skepticism I encountered at that social gathering wasn’t discouraging—it was a reality check. It reminded me that people aren’t inherently against AI; they’re against what they don’t understand or feel excluded from.

This is a challenge I feel we need to tackle head-on. We need to demystify AI, showing people how it can enhance their industries rather than replace them. We need to address fears about job displacement with concrete solutions, like upskilling programs and new career pathways. And we need to make sure that AI benefits everyone—across sectors, demographics, and age groups.

Final Thoughts

Generative AI is no longer a distant concept—it’s here, shaping industries and communities in real time. But its success depends on how we choose to engage with it.

For Palm Springs-Coachella, this is a moment of opportunity. We can lead by example, showing how a region with unique challenges and strengths can thoughtfully integrate AI into its economy and workforce. This isn’t about trying to be Silicon Valley—it’s about creating something better: a community-driven model for inclusive innovation.

The pushback I encountered wasn’t a roadblock—it was a mirror. It reflected the questions, fears, and hopes that many people have about AI. And it reminded me that the conversation about AI’s future isn’t just about technology; it’s about trust, education, and shared purpose.

Generative AI isn’t just a tool for tech enthusiasts or big corporations—it’s a tool for everyone. But to make it work for everyone, we need to ensure that no one is left behind. That means investing in education, fostering collaboration, and building a roadmap that prioritizes people over profits.

The future of Generative AI isn’t written yet. It’s up to us to write it—and my mission is that we write it together. Join me.

What do you think? Are you hostile or hesitant? Bullish or bearish? What industry are you in? Let me know in the comments below. Let’s meet-up for a coffee and chat.

TL;DR

1. Generative AI Adoption is Uneven: While tools like Suno, Claude, Gemini, and Sora are making waves, many industries are still figuring out how to integrate them effectively.

2. We’re in the Reality Check Phase: The hype is settling, making this the perfect time to focus on practical applications that solve real problems.

3. Workforce Development is Critical: Economic growth through AI must be paired with upskilling programs to prepare workers for the future.

4. Palm Springs-Coachella Can Lead: By leveraging our unique strengths—diversity, quality of life, and collaboration—we can become a model for AI-driven regional innovation.

5. The Conversation is Just Beginning: Skepticism isn’t a barrier—it’s an opportunity to engage, educate, and build trust.