1.5.2023
In April, we gained insight into the impact of Generative AI on the global economy, found key takeaways from the annual AI Index report, and the latest developments in AI regulations worldwide. Also, read about the major players in the generative AI market and how they're positioning themselves for success.
Cedric May
Chief Technology Officer
Goldman Sachs has published an insights report on the impact of Generative AI on the global economy. According to the report, Generative AI has the potential to raise global GDP by 7%, with the largest benefits seen in the manufacturing, retail, and healthcare sectors. The report highlights the potential of Generative AI to automate repetitive tasks, reduce costs, and improve the speed and accuracy of decision making. It also stresses the need for proper regulation and ethical considerations to ensure that the benefits of Generative AI are realized while minimizing any negative impacts.
The report from Goldman Sachs predicts that the adoption of AI technology will lead to the loss or degradation of 300 million jobs in the near future. While new jobs will emerge in areas like data analysis and AI development, service sector jobs are most at risk. Countries with a higher proportion of service sector jobs will be more impacted by job loss, while those with more healthcare and education jobs will be less impacted. Governments and organizations should prepare for the changes that may come from the increasing use of AI technology in the job market.
The AI Index is a highly respected annual report that provides a comprehensive view of the progress of artificial intelligence (AI) in various areas, including research, education, and industry. The report is prepared by the world-renowned Stanford Institute for Human-Centered Artificial Intelligence (HAI), which is known for its expertise in the field. Here are some key takeaways from this year's report.
Italy has become the first Western country to ban ChatGPT. The Italian data protection authority is investigating whether the chatbot complies with GDPR, the regulation that governs the way personal data is used and stored. OpenAI has 20 days to address the watchdog's concerns or face a fine of €20 million or up to 4% of its annual revenue. Consumer advocacy group BEUC is calling for EU and national authorities to investigate ChatGPT and other similar chatbots, following a complaint filed in the US. Despite the EU working on the world's first AI legislation, BEUC fears that it will take years before the AI Act takes effect. ChatGPT is already blocked in several countries, including China, Iran, North Korea, and Russia. OpenAI disabled ChatGPT in Italy at the request of the Italian data protection regulator, and says it complies with GDPR and other privacy laws.
China's Cyberspace Administration of China (CAC) has released draft rules regulating the development of generative AI products like ChatGPT. These rules are the first of their kind in China and provide guidance for companies developing generative AI services. The rules outline clear guidelines for the type of content that these products can generate to ensure it aligns with the core values of socialism and does not undermine state power. Companies must also ensure that the data used to train these AI models is non-discriminatory and does not generate false information. The CAC's rules create a framework for Chinese firms to develop the technology while adhering to other regulations. These draft measures will take effect later this year, giving companies time to prepare and ensure compliance.
The City of Yokosuka in Kanagawa Prefecture is known for housing a U.S. naval base and being the birthplace of former Prime Minister Junichiro Koizumi. With a one-month trial period, Yokosuka’s municipal government office has begun utilizing ChatGPT to help its roughly 4,000 employees with administrative tasks. The goal is to streamline tasks such as summarization, copy ideation for marketing and communications, drafting the basis for administrative documents, and perfecting easy-to-understand language. Despite concerns about security, Yokosuka intends to use the tool in accordance with OpenAI’s stringent security policy. ChatGPT will be tested among Yokosuka employees in conjunction with "LoGo Chat," a local government-focused chat service already in use by Yokosuka employees, with confidence in its potential benefits.
Alibaba has created an AI chatbot, Tongyi Qianwen, to compete with OpenAI's ChatGPT. Tongyi Qianwen can understand both English and Chinese, and can turn conversations into notes, create business proposals, and write emails. Alibaba joins Google and Baidu in the generative AI market. China's cyberspace regulator has released measures for governing generative AI, which requires companies to ensure the accuracy of data used to train the technology. Alibaba's chairman, Daniel Zhang, believes that we are on the brink of a technological revolution driven by generative AI and cloud computing.
Elon Musk's new AI company, X.AI, has made waves in the tech industry. The company was incorporated just last month, with Musk taking on the role of director. It has now been revealed that he has purchased a significant number of graphics processing units (GPUs) to power an upcoming generative AI product. He also warned that AI can pose a threat if not managed properly and called for government oversight of AI projects. X.AI is Musk's bold attempt to disrupt the AI industry, which is currently dominated by Microsoft-backed OpenAI. While the company's goals and objectives are not yet known, given Musk's reputation for thinking big and his affinity for AI, it's safe to assume that X.AI will be a major player in the industry.
Both Google and Microsoft have recently highlighted their emphasis on artificial intelligence (AI) as the next big thing in their respective quarterly earnings reports. Alphabet's revenue was $69.79B, beating the consensus estimate of $67.89B. Microsoft's revenue was $52.86B, surpassing the expected $51.02B, per Refinitiv. OpenAI's chatbot, ChatGPT, has challenged Google's dominance in the market for online search worldwide, while Microsoft has been incorporating OpenAI's technology into its Bing search engine. This has put pressure on Google to reinvent its core search business to allow for more of the conversational exchanges that generative AI makes possible.
Meanwhile, Meta, the company formerly known as Facebook, revealed during its Q1 2023 earnings call that it will be integrating generative AI into its apps. CEO Mark Zuckerberg gave a sneak peek into the AI's integration, although he did not provide specific details. Despite a 24% decrease in profit compared to the same period last year, Meta's Q1 2023 profit still amounted to $5.7 billion. Although Meta had initially been slow in building the necessary infrastructure to support AI features, it has since caught up. The release of generative AI is expected in the coming months.
PricewaterhouseCoopers LLP plans to invest $1 billion in generative AI technology in partnership with Microsoft and OpenAI to automate tax, audit, and consulting services. The investment will involve hiring more AI workers, training existing staff, and targeting AI software makers for possible acquisitions. Generative AI tools can generate natural-language responses, images, or computer code based on user text prompts. PwC intends to incorporate generative AI into its technology stack and client-services platforms, and provide advice to other companies on how to use it. PwC will pay for access to OpenAI's GPT-4 language model, the underlying software that powers ChatGPT, to develop and run apps in Microsoft's Azure cloud.
Goldman Sachs has published an insights report on the impact of Generative AI on the global economy. According to the report, Generative AI has the potential to raise global GDP by 7%, with the largest benefits seen in the manufacturing, retail, and healthcare sectors. The report highlights the potential of Generative AI to automate repetitive tasks, reduce costs, and improve the speed and accuracy of decision making. It also stresses the need for proper regulation and ethical considerations to ensure that the benefits of Generative AI are realized while minimizing any negative impacts.
The report from Goldman Sachs predicts that the adoption of AI technology will lead to the loss or degradation of 300 million jobs in the near future. While new jobs will emerge in areas like data analysis and AI development, service sector jobs are most at risk. Countries with a higher proportion of service sector jobs will be more impacted by job loss, while those with more healthcare and education jobs will be less impacted. Governments and organizations should prepare for the changes that may come from the increasing use of AI technology in the job market.
The AI Index is a highly respected annual report that provides a comprehensive view of the progress of artificial intelligence (AI) in various areas, including research, education, and industry. The report is prepared by the world-renowned Stanford Institute for Human-Centered Artificial Intelligence (HAI), which is known for its expertise in the field. Here are some key takeaways from this year's report.
Italy has become the first Western country to ban ChatGPT. The Italian data protection authority is investigating whether the chatbot complies with GDPR, the regulation that governs the way personal data is used and stored. OpenAI has 20 days to address the watchdog's concerns or face a fine of €20 million or up to 4% of its annual revenue. Consumer advocacy group BEUC is calling for EU and national authorities to investigate ChatGPT and other similar chatbots, following a complaint filed in the US. Despite the EU working on the world's first AI legislation, BEUC fears that it will take years before the AI Act takes effect. ChatGPT is already blocked in several countries, including China, Iran, North Korea, and Russia. OpenAI disabled ChatGPT in Italy at the request of the Italian data protection regulator, and says it complies with GDPR and other privacy laws.
China's Cyberspace Administration of China (CAC) has released draft rules regulating the development of generative AI products like ChatGPT. These rules are the first of their kind in China and provide guidance for companies developing generative AI services. The rules outline clear guidelines for the type of content that these products can generate to ensure it aligns with the core values of socialism and does not undermine state power. Companies must also ensure that the data used to train these AI models is non-discriminatory and does not generate false information. The CAC's rules create a framework for Chinese firms to develop the technology while adhering to other regulations. These draft measures will take effect later this year, giving companies time to prepare and ensure compliance.
The City of Yokosuka in Kanagawa Prefecture is known for housing a U.S. naval base and being the birthplace of former Prime Minister Junichiro Koizumi. With a one-month trial period, Yokosuka’s municipal government office has begun utilizing ChatGPT to help its roughly 4,000 employees with administrative tasks. The goal is to streamline tasks such as summarization, copy ideation for marketing and communications, drafting the basis for administrative documents, and perfecting easy-to-understand language. Despite concerns about security, Yokosuka intends to use the tool in accordance with OpenAI’s stringent security policy. ChatGPT will be tested among Yokosuka employees in conjunction with "LoGo Chat," a local government-focused chat service already in use by Yokosuka employees, with confidence in its potential benefits.
Alibaba has created an AI chatbot, Tongyi Qianwen, to compete with OpenAI's ChatGPT. Tongyi Qianwen can understand both English and Chinese, and can turn conversations into notes, create business proposals, and write emails. Alibaba joins Google and Baidu in the generative AI market. China's cyberspace regulator has released measures for governing generative AI, which requires companies to ensure the accuracy of data used to train the technology. Alibaba's chairman, Daniel Zhang, believes that we are on the brink of a technological revolution driven by generative AI and cloud computing.
Elon Musk's new AI company, X.AI, has made waves in the tech industry. The company was incorporated just last month, with Musk taking on the role of director. It has now been revealed that he has purchased a significant number of graphics processing units (GPUs) to power an upcoming generative AI product. He also warned that AI can pose a threat if not managed properly and called for government oversight of AI projects. X.AI is Musk's bold attempt to disrupt the AI industry, which is currently dominated by Microsoft-backed OpenAI. While the company's goals and objectives are not yet known, given Musk's reputation for thinking big and his affinity for AI, it's safe to assume that X.AI will be a major player in the industry.
Both Google and Microsoft have recently highlighted their emphasis on artificial intelligence (AI) as the next big thing in their respective quarterly earnings reports. Alphabet's revenue was $69.79B, beating the consensus estimate of $67.89B. Microsoft's revenue was $52.86B, surpassing the expected $51.02B, per Refinitiv. OpenAI's chatbot, ChatGPT, has challenged Google's dominance in the market for online search worldwide, while Microsoft has been incorporating OpenAI's technology into its Bing search engine. This has put pressure on Google to reinvent its core search business to allow for more of the conversational exchanges that generative AI makes possible.
Meanwhile, Meta, the company formerly known as Facebook, revealed during its Q1 2023 earnings call that it will be integrating generative AI into its apps. CEO Mark Zuckerberg gave a sneak peek into the AI's integration, although he did not provide specific details. Despite a 24% decrease in profit compared to the same period last year, Meta's Q1 2023 profit still amounted to $5.7 billion. Although Meta had initially been slow in building the necessary infrastructure to support AI features, it has since caught up. The release of generative AI is expected in the coming months.
PricewaterhouseCoopers LLP plans to invest $1 billion in generative AI technology in partnership with Microsoft and OpenAI to automate tax, audit, and consulting services. The investment will involve hiring more AI workers, training existing staff, and targeting AI software makers for possible acquisitions. Generative AI tools can generate natural-language responses, images, or computer code based on user text prompts. PwC intends to incorporate generative AI into its technology stack and client-services platforms, and provide advice to other companies on how to use it. PwC will pay for access to OpenAI's GPT-4 language model, the underlying software that powers ChatGPT, to develop and run apps in Microsoft's Azure cloud.
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