Generative AI will go mainstream in 2024

 

Data-savvy firms will benefit first predicts The Economist

image: mariano pascual

Nov 13th 2023

By Guy Scriven

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When new technologies emerge they benefit different groups at different times. Generative artificial intelligence (ai) first helped software developers, who could use GitHub Copilot, a code-writing ai assistant, from 2021. The next year came other tools, such as Chatgpt and dall-e 2, which let all manner of consumers instantly produce words and pictures.

In 2023 tech giants gained, as investors grew more excited about the prospects of generative ai. An equally weighted share-price index of Alphabet, Amazon, Apple, Meta, Microsoft and Nvidia grew by nearly 80% (see chart). Tech firms benefited because they supply either the ai models themselves, or the infrastructure that powers and delivers them.

image: the economist

In 2024 the big beneficiaries will be companies outside the technology sector, as they adopt ai in earnest with the aim of cutting costs and boosting productivity. There are three reasons to expect enterprise adoption to take off.

First, large companies spent much of 2023 experimenting with generative ai. Plenty of firms are using it to write the first drafts of documents, from legal contracts to marketing material. JPMorgan Chase, a bank, used the technology to analyse Federal Reserve meetings to try to glean insights for its trading desk.

As the experimental phase winds down, firms are planning to deploy generative ai on a larger scale. That could mean using it to summarise recordings of meetings or supercharging research and development. A survey by kpmg, an audit firm, found that four-fifths of firms said they planned to increase their investment in it by over 50% by the middle of 2024.

Second, more ai products will hit the market. In late 2023 Microsoft rolled out an ai chatbot to assist users of its productivity software, such as Word and Excel. It launched the same thing for its Windows operating system. Google will follow suit, injecting ai into Google Docs and Sheets. Startups will pile in, too. In 2023 venture-capital investors poured over $36bn into generative ai, more than twice as much as in 2022.

The third reason is talent. ai gurus are still in high demand. PredictLeads, a research firm, says about two-thirds of s&p 500 firms have posted job adverts mentioning ai. For those companies, 5% of adverts now mention the technology, up from an average of 2.5% over the past three years. But the market is easing. A survey by McKinsey, a consultancy, found that in 2023 firms said it was getting easier to hire for ai-related roles.

Which firms will be the early adopters? Smaller ones will probably take the lead. That is what happened in previous waves of technology such as smartphones and the cloud. Tiddlers are usually more nimble and see technology as a way to gain an edge over bigger fish.

Among larger companies, data-centric firms, like those in health care and financial services, will be able to move fastest. That is because poor data management is a big risk for deploying ai. Managers worry about valuable data leaking out through ai tools. Firms without solid data management may have to reorganise their systems before it is feasible to deploy generative ai. Using the technology can feel like science fiction, but getting it to work safely is a much more humdrum affair. 

Improve Your ChatGPT Usage

 

Never Meet Your Hero

The saying "Never meet your hero" is a cautionary advice that suggests it's best to avoid meeting or getting too close to someone you greatly admire or look up to. The underlying idea is that meeting them in person may shatter the idealized image you have of them, leading to disappointment, disillusionment, or a loss of respect.

Here are a few reasons why this saying holds some truth:

1. Idealization: When we admire someone from a distance, we tend to create an idealized version of them in our minds. We focus on their achievements, talents, and positive qualities. However, meeting them in person may reveal their flaws, shortcomings, or simply the fact that they are human like everyone else. This contrast between the idealized image and reality can be disheartening.

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3. Unmet Expectations: Meeting your hero can come with high expectations. You might anticipate an extraordinary experience or hope for a deep personal connection. However, in reality, the interaction may not live up to your expectations. They may not meet your assumptions or be as interested in engaging with you as you had hoped. This discrepancy can be disappointing and lead to a sense of letdown.

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5. Human Imperfection: Heroes, like all humans, have their flaws and make mistakes. By meeting them, you become more aware of their imperfections, which can tarnish the pedestal on which you had placed them. You might discover they hold different beliefs, behave in ways that clash with your values, or have made questionable decisions. This revelation can be disillusioning and alter your perception of them.

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7. Loss of Mystery: Part of the allure of heroes lies in the mystery and intrigue surrounding them. When you meet them and learn more about their personal lives, their struggles, and their everyday routines, the enigma may dissipate. This loss of mystery can diminish the charm and fascination you had felt toward them.

It's important to note that while this saying holds some truth, it doesn't mean that meeting your hero will always result in disappointment. Some people have positive experiences and develop deeper admiration and respect for their heroes after meeting them. However, the saying serves as a reminder to be prepared for the possibility that reality may not match your expectations, and it encourages appreciating and respecting people for their accomplishments while acknowledging their humanity.

Using Artificial Intelligence (AI) as a personal tutor