INTELLI Tech Trend Tuesday: The Transformative Wave of Generative AI

December 12/19/2023 | In this first edition of Tech Trend Tuesday, we delve into the rapidly evolving landscape of Generative AI and its significant implications for various industries.

Introduction: The Breakout of Generative AI

• Generative AI has seen explosive growth and widespread adoption in a multitude of business functions, transitioning from a niche topic to a focus area for company leaders and boards​​.

Industry Analysis and Expert Opinions

• Widespread Adoption: One-third of organizations are regularly using Generative AI in functions like marketing, sales, product development, and service operations, indicating its potential to deliver substantial annual value​​.

• Impact Across Industries: Expectations are high for Generative AI to cause significant change in competition, especially in knowledge-based industries like technology, finance, and pharmaceuticals, contrasting with its less disruptive effects in manufacturing​​.

• Challenges in Management and Risks: Many companies are still grappling with managing Gen AI-related risks, particularly inaccuracy, highlighting a lack of preparedness and policy governance in using these technologies​​.

Challenges and Future Outlook

• AI High Performers Leading the Way: Organizations proficient in AI are extensively using Gen AI for product development, risk management, and HR, focusing less on cost reduction and more on creating new business models and enhancing existing offerings​​.

• Workforce Transformation: The adoption of Gen AI is predicted to reshape many roles in the workforce, necessitating significant reskilling efforts, especially in companies that are AI high performers​​.

• Investment and Returns: While the use of Gen AI tools is increasing, it hasn't yet propelled overall AI adoption significantly. However, organizations are seeing returns in areas where AI is used and plan to increase their AI investments in the coming years​​​​.

Initiatives to Mitigate AI's Impact on Job Displacement

In response to concerns about AI, particularly Generative AI, replacing jobs, there have been significant initiatives to ensure that AI developments benefit workers without causing undue displacement. For instance, President Biden issued an Executive Order focused on the safe and responsible development and use of AI, emphasizing the importance of AI being used to improve workers' lives and augment human work, rather than replace it. This order outlines the commitment to support the nation's workers, ensuring they benefit from AI opportunities, such as new jobs and improved job quality, while being protected from dangers like job displacement and discrimination​​.

AI systems, including Generative AI, have the potential to enhance productivity and efficiency in the workplace. However, they also pose risks of deteriorating job quality, embedding bias, or replacing workers. The Labor Department is dedicated to ensuring that workers have a voice in the responsible development and use of AI, focusing on developing principles and best practices for employers and AI developers to mitigate these potential harms​​.

The initiatives include addressing job-displacement risks, labor standards, job quality implications of AI, including equity, compensation, and health and safety, and implications of employers using AI to collect data on workers, with a focus on issues such as data privacy, ownership, and transparency​​.

10 Generative AI Start-Ups to Watch in 2023

1. Paige.AI (USA): Developing deep learning algorithms and generative AI models for healthcare, particularly focusing on technology from Memorial Sloan Kettering​​.

2. Synthesis AI (USA): Integrates generative AI with CGI technologies to create large volumes of data for training advanced computer vision models​​.

3. Veesual AI (France): Specializes in virtual try-on experiences for fashion e-commerce using Generative AI​​.

4. Toko (USA): Provides an AI-powered mobile app to help English learners in East Asia achieve speaking fluency through realistic conversations and grammar corrections​​.

5. Andi (USA): A conversational search engine using AI to provide direct answers and summaries on complex topics​​.

6. Rephrase.ai (India): Focuses on democratizing video creation with deep learning to generate digital avatars for synthetic video content​​.

7. Tavus (USA): Builds video-based experiences for marketing and product teams, making personalized video outreach scalable with AI​​.

8. Hello Cognition (USA): A next-generation search engine that combines information from multiple sources to answer complex technical questions and generate code snippets​​.

9. Revery AI Inc. (USA): Creates technology for virtual dressing rooms, allowing shoppers to try before they buy.

10. Synthesia AI: A generative AI video maker that transforms text into AI-generated videos in multiple languages and avatars

Conclusion: Navigating the Gen AI Landscape

The advancement of Generative AI marks a pivotal shift in technology, offering transformative possibilities and challenges. Businesses and investors must navigate this landscape by understanding its potential, addressing its risks, and adapting to its impact on workforce and industry dynamics.

Join us next week as we continue exploring emerging technologies and their impacts on the business and tech world.