The current AI frenzy demonstrates the growing interest and excitement around new tools like ChatGPT and their potential applications in various fields. With the rapid advancements in machine learning, deep learning and natural language processing, AI has become a hot topic of discussion among researchers, policymakers and business leaders.
5 Generative AI Concerns
- Legal and intellectual property issues surrounding ownership and control of that content.
- Ethics and bias resulting from the data generative AI systems are trained on.
- Regulation that could limit its use and make it more difficult for businesses to innovate.
- Safety and security, because generative AI could be used for malicious purposes.
- Cultural barriers in some regions, where there might be resistance to using AI technology for creative tasks.
One of the key drivers of the AI boom is the increasing amount of data that is being generated and collected by various organizations. This data can be used to train AI models to perform complex tasks such as image recognition, natural language understanding and predictive analytics. Companies are using this technology to gain insights and create value, leading to a proliferation of AI startups and applications.
While there are certainly risks and challenges associated with the technology, the impact will go beyond a bubble as something that will increasingly play an important part of our lives. As generative AI becomes prevalent across all industries and in recreational usage, the bubble will grow before it bursts. And that is if there is indeed a bubble to be burst in the first place, rather I see an advancement of technology that has only continued to evolve over multiple years.
The Natural Limits of ChatGPT
As a language model, ChatGPT has its limitations, one of which is a lack of contextual understanding. While ChatGPT has been trained on a vast amount of data, it cannot always understand the nuances and context of a given conversation. It may also struggle with sarcasm, irony and other forms of figurative language.
Second, ChatGPT’s knowledge is limited to the data it was trained on, which was last updated in 2021. It may not be aware of recent events or developments that have occurred since then. And while it can generate text that is coherent and grammatically correct, it may struggle to come up with truly original or creative ideas. The AI struggles to respond to emotional or sensitive topics and has reportedly shared biased information to certain prompts.
Even though ChatGPT has its limits, it can still be a valuable tool for language-based tasks and interactions, as long as its capabilities and limitations are understood and appropriately applied.
Generative AI and Customer Experiences
The effect of ChatGPT on conversational experiences is still underappreciated. A lot of discussion on the tech has focused around the ease of generating blog posts, articles and search. But generative AI will have a big impact on conversational experiences, which are very popular in mobile-first countries. Businesses around the world will leverage this tech to take the customer experience to a whole new level. Better customer experience will mean more frequent transactions, which ultimately translate to higher business growth.
With generative AI-enabled chatbots, enterprises can substantially improve customer engagement, increase revenue, and decrease support costs. Use cases include marketing offers, lead generation, product discovery, product recommendations, shopping advice, troubleshooting, customer support, and more.
Not About Growth, but Scale
VC firms have already invested billions of dollars in AI startups in a variety of categories, including generative AI. But for the AI boom to continue and truly transform industries, it will need to be driven by speed and scale.
One of the biggest challenges facing AI startups today is the ability to scale their solutions beyond a small number of customers or use cases. Many startups struggle to achieve the economies of scale necessary to make their solutions profitable and sustainable over the long term.
To overcome this challenge, startups will need to focus on developing solutions that can be easily integrated into existing workflows and processes, as well as quickly and efficiently deployed across large organizations. They will also need to develop business models that are sustainable at scale, such as subscription-based services or revenue-sharing arrangements.
AI Buzz vs. Crypto Buzz
Given generative AI’s hype, and given what happened to the similarly hyped cryptocurrency, the theory that generative AI is just a bubble isn't surprising. However, there are key differences between these technologies.
Unlike crypto, AI has not traditionally required extensive marketing efforts because it is a well-established field with a long history of research and development. Moreover, AI technologies are often complex and require a high level of technical expertise to fully understand and utilize. In recent years, there has been a surge of interest in AI, driven in part by advances in machine learning and natural language processing.
In addition, AI is not a technology that typically lends itself to celebrity endorsements. This is because the value proposition of AI is often based on its technical capabilities rather than its brand appeal. In contrast, the buzz around crypto is often driven by a combination of speculation, hype, and the potential for high returns.
The Future of Generative AI
Generative AI has the potential to transform many industries, including art, music, literature and advertising. However, significant concerns surround its use, including transparency, as it can be difficult to understand how generative AI systems arrive at their outputs, which can make it difficult to audit or explain their behavior. This lack of transparency could limit its adoption in business settings.
Addressing these concerns will require collaboration among researchers, policymakers and industry stakeholders to develop solutions that ensure the responsible and ethical use of generative AI technology. This will require a commitment to transparency, fairness and accountability, as well as a willingness to invest in developing robust ethical and regulatory frameworks.
If the creators of generative AI systems do not adhere to these standards, then this technology is more likely to be a bubble, as businesses and customers will not trust it. However, if these standards are met, then generative AI will have a lasting effect on our lives.
