The AI Effect: Why We Stop Calling It AI
Here’s a funny thing about artificial intelligence: the moment it works, we stop calling it AI.
Think about it. Spell check, spam filters, recommendation engines—all of these once lived at the cutting edge of AI research. Today, they’re just… software.
This phenomenon even has a name: The AI Effect. It’s the idea that once AI solves a problem, people quickly move the goalposts and say, “Well, that’s not really AI.”
Why the Goalposts Move
Part of this comes from hype. AI is often marketed as something futuristic, mysterious, and magical. So when a technology becomes commonplace, it feels less like “artificial intelligence” and more like business as usual.
Another reason is human psychology: we tend to equate “intelligence” with whatever machines can’t do yet. Once a task gets automated, it no longer feels like intelligence—it feels like automation.
Everyday Examples of the AI Effect
Email spam filters: When they first launched, filtering unwanted messages automatically was groundbreaking. Today, no one calls it AI—it’s just part of email.
GPS navigation: Early AI breakthroughs in route optimization were remarkable. Now, we simply open Google Maps.
Voice assistants: Siri, Alexa, and Google Assistant were once “AI marvels.” Now, they’re household utilities.
Each time, what was once AI becomes invisible infrastructure.
Why This Matters for Business Leaders
The AI Effect can actually be misleading. If we constantly move the definition of AI, executives can either:
Overhype the newest thing (“This will transform everything!”)
Or dismiss proven tools as “not really AI.”
Neither approach helps.
Instead, the better perspective is this: AI is a set of techniques that evolve into everyday tools. The real business value comes not from chasing what’s hyped as “AI” today, but from applying the technology—whatever we call it—to solve real problems.
A Quick Case Study
Netflix’s recommendation system is a perfect example. At one time, building an algorithm that could personalize what millions of people watch was considered an advanced AI challenge. Today, it’s just a core part of the product experience.
Customers don’t care whether Netflix calls it “AI,” “machine learning,” or just “recommendations.” What matters is that it helps them find their next favorite show.
Final Thought
The AI Effect reminds us that intelligence doesn’t have to look flashy to be valuable. Many of the most impactful AI applications become invisible precisely because they work so well.
For leaders, the lesson is simple: don’t get caught up in the label. Focus on how the technology solves problems, creates efficiencies, or opens new opportunities for your business.
AI isn’t magic—and sometimes, it’s so good you stop noticing it’s there.
👉 In the next post, we’ll wrap up this series by looking at the future of AI in business—and how to think about it without the hype.