What is Discontinuity?

Generative AI is following the classic hype cycle. After almost two years of unrealistic expectations and euphoria, there is a rising tide of disappointment because GenAI has not transformed the world overnight.

The past few weeks have seen reports that corporate spending has not delivered ROI, that GenAI startups aren’t building sustainable businesses, and that investors have driven values of early-stage startups in this sector beyond reason.

While these reports are factually correct, the framing of the analysis is fundamentally wrong. To GenAI skeptics, I want to send a clear message:

GenAI is not disruption. It’s discontinuity.

The distinction between the two is more than just academic. GenAI is the start of a transformation that is far more profound and sweeping than even many sophisticated technology leaders have truly grasped. That means it will play out over a much longer time frame than investors and entrepreneurs are accustomed to tolerating.

This shift requires everyone across th…