I see AI as something that will go the way of VR or cryptocurrencies or self-driving cars, it won't fully go away but people will realize that it is not suitable for nearly the number of use cases or improving as quickly as it was claimed it would and will sort of forget about it in most of the areas where it is not really improving anything.

I don't understand this deliberately pessimistic perspective I keep seeing around AI development that stubbornly ignores every other technological development in history. Even just considering the singular transformer architecture, we're still seeing significant and novel improvement. In just a couple years we've watched the technology go from basic predictive text to high quality image and even video generation, now to real time robotics control.

The transformer architecture is incredibly powerful and flexible. The notion that the basic technology staying the same is an indication of stagnation is as ridiculous as if you said the same of transistors half a century ago. Most of the improvement we see in the near future will be through recursive and multi-modal applications, meta-architechtural developments that don't require the core technology to change at all.

"The internet has reached the peak of its usability and will never progress much past it's current level"

This is you in 1997.

Which paper is that?

I think we need to hit the wall and start over with what we learned a few time over to really progress.