I would say it already has hit a dead end. We're simply an imperiod of scale right now but the intrinsic problems with how the algorithms work can't be overcome by small tweaks in the algorithms.

This is seen by what people term as hallucinations. AI seeks to please and will lie to you and invent things in order to please you. We can scale it up to give it more knowledge but ultimately those failures still creep in.

There will have to be a fundamentally new design for this to be overcome. What we have now is an incredible leap forward but it has already stalled on what it can deliver.