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What is something you never understood the hype for?
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I don't buy a lot of the negative hype either, but you didn't list one of the main ones. Their use in spam.
Lately there have been issues with people submitting AI generated bug reports to bug bounty programs and wasting everyone's time. For this reason a lot of projects are considering shuttering their bug bounty programs entirely. It's just one example of the many that AI-spam has caused.