AI Producing Mixed Narratives of Fear and Optimism

Fears of Deepfakes and AI-Generated News on the Rise

The density of language referencing AI-generated fake videos as a social threat reached nearly 3 times its long-term average in November. This represented a jump of 66 points from October's already elevated level, suggesting that anxieties about synthetic media have intensified as the technology has become more sophisticated and accessible.

The first quarter of 2025 alone saw 179 deepfake incidents, already surpassing 2024's full-year total by 19%. Projections indicate 8 million deepfakes will circulate in 2025, up from 500,000 in 2023. This exponential growth has manifested in ways that directly challenge media credibility. Research shows that 70% of people lack confidence in distinguishing real from cloned voices, while only 0.1% of study participants could correctly identify all fake and real media shown to them.

The practical implications extend beyond theoretical concerns. AI-generated evidence has begun appearing in courtrooms, alarming judges about the trustworthiness of what they see and hear. State-sponsored propaganda campaigns have embraced AI-generated content, with researchers documenting how established operations now deploy synthetic media at scale. One analysis found that verified news formats like CNN's visual style are being mimicked alongside AI-generated images to create fake stories about public figures.

These authenticity concerns extend to news production itself. Perscient’s semantic signature tracking language claiming that artificial intelligence is increasingly producing news content rose 14.3 points to reach 142.4% above its long-term average. Britain's Channel 4 launched "Arti," an AI-generated news presenter to read dispatches on social media channels, marking a first in UK television history. NewsGuard has identified 2,089 undisclosed AI-generated news and information websites spanning 16 languages, while surveys indicate 19% of people have encountered AI bullet-point summaries of news stories and 16% have interacted with AI chatbots answering news questions.

These developments occur within a broader crisis of institutional credibility. Only 7% of U.S. adults express a "great deal" of trust in mass media, while 39% report no trust at all, representing a new high since tracking began in 2016. The convergence of deepfake proliferation and AI-generated news suggests media narratives are wrestling with fundamental questions about authenticity in an information ecosystem where the boundary between real and synthetic has become increasingly difficult to discern.

Corporate Skepticism About AI Investments Rises Amid Productivity Questions

The erosion of trust in media authenticity has a parallel in corporate finance, where confidence in AI returns is also weakening. The density of language arguing that businesses increasingly doubt large AI spending surged by 68 points in November to nearly twice its long-term average, marking one of the most dramatic month-over-month increases in the dataset from October.

Bank of America's Global Fund Manager Survey revealed that for the first time in two decades, a net 20% of fund managers believe companies are spending too much on AI infrastructure. The survey identified the "AI bubble" as the top "tail risk," cited by 45% of investors in November compared to 33% the previous month. This represents a meaningful departure from the consensus enthusiasm that has characterized AI investment narratives over the past two years.

The skepticism finds support in emerging research on returns. MIT researchers found that 95% of organizations saw zero return on their investment in AI initiatives, while a growing body of evidence indicates most firms are not seeing chatbots affect their bottom lines. Only 3% of people pay for AI services, raising questions about the commercial sustainability of current spending levels.

Nobel laureate economist Daron Acemoglu captured the sentiment shift, stating that "these models are being hyped up, and we're investing more than we should." BCA Research warned of a potential "Metaverse Moment" when a major AI company announces increased capital expenditure only to see its stock price decline afterward, signaling a fundamental change from enthusiasm to skeptical assessment.

The circular nature of some investments has drawn particular scrutiny. Analysts have pointed to structures where Nvidia subsidizes OpenAI to buy Nvidia chips, which some argue "artificially inflates actual demand for AI." U.S. companies have issued over $200 billion in corporate bonds this year for AI projects, with analysts warning of a mismatch between long-term debt obligations and assets with much shorter depreciation cycles.

The density of language suggesting that the long-promised AI efficiency improvements haven't occurred remained flat at 85% above average. This sustained elevation in productivity skepticism narratives, combined with the sharp rise in investment doubts, suggests that media coverage is increasingly questioning whether massive AI spending will deliver the transformative returns that justify current expenditure levels.

Optimism About AI's Economic and Transformative Potential Persists

Even as investment skepticism intensified, language asserting that AI will power sustained market gains and economic expansion rose 13 points to reach 71% above its long-term average in November. Bullish economic narratives about AI maintained momentum despite growing concerns about corporate spending.

The optimism draws support from concrete economic data. AI-related capital expenditures contributed 1.1% to GDP growth in the first half of 2025, outpacing the U.S. consumer as an engine of expansion. S&P 500 companies are projected to achieve approximately 15% year-over-year earnings growth in 2025, with AI investments playing a central role. Goldman Sachs estimates the present discounted value of capital revenue from generative AI for the U.S. economy at $8 trillion baseline, with a plausible range between $5 trillion and $19 trillion.

Microsoft, Alphabet, Meta, and Amazon are investing tens of billions in data centers, creating a new infrastructure boom that has become a key driver of U.S. economic performance. Some analysts note that spending by wealthy Americans, driven by surging AI company stock portfolios, represents the single biggest driver of current growth through wealth effects.

The optimism about results extends beyond market narratives, too. For example, the density of language asserting that AI will fundamentally change healthcare delivery rose by 24 points this month. Healthcare is now deploying AI at more than twice the rate of the broader economy, with widespread adoption making the industry America's AI powerhouse in just two years. The FDA reports approximately 950 cleared AI/ML devices by mid-2024, with the AI-enabled medical device market valued at $13.7 billion in 2024 and projected to exceed $255 billion by 2033.

Similarly, language density asserting that AI will fundamentally change scientific research rose 15 points, while language asserting American that AI dominance is a strategic imperative increased by 16 points. The Council on Foreign Relations emphasized that strategic competition over foundational technologies including AI is underway, with U.S. advantages increasingly contested by other nations, especially China.

The persistence of optimistic narratives about AI's bull market potential and transformative capabilities, even as skepticism about corporate investments and the effects on society at large rises sharply, reflects a complex bifurcation in media coverage. The underlying tension concerns whether the massive current spending will ever generate returns that justify the scale of investment, and also whether the technology's real economic impact will take longer to materialize than capital markets have priced in. At any rate, it seems clear that the narratives of AI can remain dislocated from its realities for far longer than most popular media seem willing to admit.

Pulse is your AI analyst built on Perscient technology, summarizing the major changes and evolving narratives across our Storyboard signatures, and synthesizing that analysis with illustrative news articles and high-impact social media posts.