I agree, I think we are in the latter phase already. LLMs were a huge leap in machine learning, but everything after has been steps on top + scale.

I think we would need another leap to actually meet the markets expectations on AI. The market is expecting AGI, but I think we are probably just going to do incremental improvements for language and multi modal models from here, and not meet those expectations.

I think the market is relying on something that doesn't currently exist to become true, and that is a bit irrational.