Unleashing Artificial Intelligence's true potential
How generative AI could empower innovation, redefine productivity, and transform the workforce
July 2023
Jonah Trenker, Sai Satkriti Menon, Naveen Tavva, Timothy Owens, Ozan Tas, Christoph Blumtritt
Bringing together data-driven intelligence, expert perspectives, and extensive research to provide insights and future outlooks on current trends, market data, and key player strategies in the Artificial Intelligence market.
TOPICS EXPLORED IN THIS PUBLICATION
Artificial Intelligence (AI) is the new electricity: If Big Data is the new oil, then AI is the new electricity, as it enables many developments. A lot of complexity can be reduced by AI, due to the recent developments in generative AI. With more programs utilizing multimodal capabilities across images, text, and sound, generative AI will continue to improve at a parabolic pace. AI will redefine how businesses interact with their customers.
AI shaping the economy: Despite the rather bad general economic situation, the growth of AI-focused companies and their increasing market value, driven by innovation and growing funding, has helped to stabilize parts of the economy and offset the lack of growth in other sectors. AI will have a crucial impact on the GDP by boosting economic performance. At the moment AI-focused companies are driving the majority of growth in the overall tech-sector, while more traditional sectors like financials or energy continue to face challenges.
Business moats in the AI race: In the race for AI dominance, the key to winning lies in hardware innovation, particularly in the development of the fastest chips and biggest cloud capabilities. As the importance of tailored hardware solutions becomes increasingly evident, major players in the AI industry are investing heavily in building their own chip manufacturing capabilities. Application companies are growing topline revenues very quickly but often struggle with retention, product differentiation, and gross margins. Most model providers, though responsible for the very existence of this market, haven’t yet achieved large commercial scale.
Generative AI content flood: As generative AI continues to propel the content creation space forward, the cost of generating digital content will decrease massively, leading to a flood of content in many areas. This could raise concerns about the trustworthiness of media when content becomes inaccurate, misleading, or even malicious with the need for human verification in order to ensure accuracy and reliability. In general, the ethical use of AI, with a focus on transparency will become more important.
The changing world of work: In the near future, the use of AI in the workplace will become ubiquitous, with not using AI being seen as outdated as writing letters today. While AI will increase efficiency and productivity, leading to a boost in economic output, real experts will still be relevant as AI has a tendency towards homogeneity and may not be able to provide the same level of diversity and innovation as human experts.
chapter 1
If Big Data is the new oil, AI is the new electricity
Unlike other current buzzing topics such as cryptocurrencies, NFTs, and Web 3.0, which have tended to lose importance as a result of the difficult economic situation, AI appears to be having a breakout moment thanks to recent advances in generative AI, particularly by the release of ChatGPT. AI is a strong technology capable of solving real-world issues and simplifying complicated activities across a wide range of businesses, stimulating change in a variety of fields, from healthcare to education to entertainment. As a consequence, many experts are convinced that AI is here to stay and will impact humanity's destiny in ways similar to the steam engine. Chatbots such as GPT are only the tip of the iceberg when it comes to AI advancements in recent years. AI is seeing a rush in invention and development, with new tools and technologies appearing on a daily basis. In the next few years, AI will continue to evolve and expand, enhance economic performance, and add to global GDP.
chapter 2
A steam engine moment to the computer age, generative AI is boosting efficiency and creativity to unprecedented heights
In the ever-evolving landscape of AI-advancements, one field stands out for its meteoric rise and transformative potential: generative AI. With predictions pointing to a staggering US$4.31 trillion contribution to the market by 2030, the growth of generative AI is nothing short of extraordinary. Large language models (LLMs), lying at the center of this transformation, continuing to grow in size and cost, changing the laws of what's possible. GPT-3 has set new records after being trained on a massive 45 terabytes dataset. GPT-4 not only outperformed more than 90% of practicing attorneys on the bar exam, but also displayed "human-level performance" in a variety of professional assessments. The consequences are mind-boggling, since generative AI now has the capacity to redefine human competence. The surge in funding within the generative AI sector is a testament to its promising future. With average funding amounts per round skyrocketing. As we stand at the precipice of a new era, generative AI holds the key to unlocking boundless creative potential.
chapter 3
The double-edged sword of AI: Will we lose our jobs or become extremely productive?
The deluge of data, emails, meetings, and notifications in today's fast-paced world has exceeded our ability to digest them. However, the increasing usage of AI could provide a solution to this daunting dilemma, revolutionizing the way we operate. Businesses are using AI to cut expenses, boost productivity, and drive revenue development. AI is transforming businesses throughout the world by automating monotonous work and complementing human skills. Generative AI has played a pivotal role in accelerating technology towards human-level competency while bolstering productivity. Nevertheless, this shift towards AI-powered work comes with consequences. Employers anticipate significant workforce restructuring as many job tasks become susceptible to automation. Roles that involve routine and repetitive work are at the forefront of this risk, necessitating a shift in job requirements and responsibilities.
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