People have been saying that we reached the limits of AI/LLMs since GPT4. Using o1-preview (which is barely a few weeks old) for coding, which is definitely an improvement, suggests there's still solid improvements going on, don't you think?
Continued improvement is returns, making it inherently compatible with a diminishing returns scenario. Which I also suspect we're in now: there's no comparing the jump between GPT3.5 and GPT4 with GPT4 and any of the subsequent releases.
Whether or not we're leveling out, only time will tell. That's definitely what it looks like, but it might just be a plateau.
Maybe, just maybe, we reached diminishing returns with AI, for now at least.