We believe AI will have a greater impact on society than any previous technology, on timescales we’ve never experienced.
Throughout history, several technological revolutions have drastically altered society. The Industrial Revolution mechanized labor, significantly increasing our productivity. The advent of the internet revolutionized communication and information access, enabling global collaboration. Each of these transformations took decades to unfold. In contrast, AI’s development and integration into society are occurring at an unprecedented pace. But why?
The exponential growth of AI, particularly generative AI, and the potential for impact are primarily driven by three factors: increases in compute power, data availability, and AI accessibility. These factors have been bolstered by existing infrastructure and substantial capital investment. We believe it’s critical for organizations to develop AI strategies and start implementing AI solutions to stay ahead.
First, let’s look at the factors directly impacting the rise of generative AI.
Compute Power
One of the primary drivers behind AI’s rapid development is the major advancement in computing power. Modern hardware innovations have vastly increased computational efficiency and capacity. These advancements enable the processing of large datasets and the training of complex AI models at scales previously unattainable. As a result, AI systems can perform sophisticated tasks such as natural language processing, image recognition, and deep learning, which were once considered beyond reach. This leap in computing power has been crucial in pushing the boundaries of what AI can achieve.
Data Availability
Remember the emergence of “big data” in the mid-2000s? Now, all that data is being put to work. The internet, social media, IoT devices, and digital transactions generate vast amounts of data that can be used to train AI models. This data-rich environment provides AI systems with the raw material needed to learn and improve continuously. Companies and organizations can now access and process enormous datasets to develop more accurate and effective AI solutions.
AI Accessibility
At its release, ChatGPT was the fastest software platform to reach 100 million users, achieving this in only 2 months. The rise of ChatGPT was largely due to the simplicity of use and the low barrier to value. Large Language Model APIs provide developers with quick and easy access to the capabilities of these systems. Additionally, the open-source movement has played a crucial role in the fast-paced development of AI. Open-source platforms have made powerful AI tools and libraries accessible to a global community of researchers and developers. This collaborative environment accelerates innovation and dissemination of new techniques, allowing for rapid iteration and improvement.
Meanwhile, these factors are further supported by an ecosystem that has never existed at this scale previously:
Existing Infrastructure
The existing cloud infrastructure has significantly accelerated the rapid development of AI. Previous investments in developing robust cloud platforms have laid the groundwork for this swift rollout. Cloud infrastructure often involves multiple layers of abstraction, such as infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). These layers enable developers to focus on higher-level problem-solving without needing to manage underlying hardware or software complexities. This setup significantly speeds up the development process by providing scalable, on-demand resources and reducing the need for extensive upfront investment in physical infrastructure. Cloud providers such as Google Cloud, Microsoft Azure, and AWS offer specialized AI and machine learning services that provide scalable and flexible resources, enabling faster innovation and deployment of AI models.
Investments Powering Advancements
Massive investments from both private and public sectors have accelerated AI development. Tech giants like Google, Amazon, and Microsoft are investing billions in AI research and development. Venture capital funding for AI startups has surged, enabling a vibrant system of AI innovation. (GPT-4 used an estimated $78M and Google’s Gemini $191M in compute power!)
Unique Speed and Scope of Impact
While the Industrial Revolution automated manufacturing, the Internet Revolution facilitated global information exchange, and the smartphone revolution enabled mobile connectivity, these advancements progressed slowly compared to AI. Physical inventions like steam engines and the gradual spread of internet infrastructure delayed their impact.
Now, AI is automating complex tasks, deriving insights from vast amounts of data, generating new content, and developing intelligent systems that can learn and adapt. All happening at timescales we haven’t experienced before. And unlike previous technologies, AI has the potential to impact virtually every sector simultaneously.
Enhanced Decision Making
- In Healthcare, AI algorithms can analyze medical images, such as X-rays and MRIs, with higher precision than human radiologists, helping to detect diseases like cancer at early stages.
- In Agriculture, AI-powered systems use data from drones, sensors, and satellite imagery to monitor crop health, soil conditions, and weather patterns in real-time. This allows farmers to make data-driven decisions about planting, irrigation, and harvesting, leading to more efficient and sustainable farming practices.
Personalized Experiences
- AI is transforming education by providing personalized learning experiences tailored to individual student needs. Platforms like Khan Academy and Coursera use AI algorithms to adapt educational content based on student performance, learning pace, and preferences.
- Businesses deploying AI chatbots on their websites and apps enhance customer experience, reduce wait times, and improve service efficiency. These AI-driven tools can handle a wide range of customer inquiries, provide personalized responses, and offer 24/7 support.
Process Automation
- In Finance, a European bank has utilized generative AI to create a virtual ESG expert. This AI synthesizes and extracts data from extensive documents with unstructured information. It can answer complex questions based on a prompt, identify the source of each answer, and extract information from images and tables.
- Walmart tested a generative AI chatbot for negotiating deals with suppliers, successfully closing 64% of the negotiations. This led to an average cost saving of 1.5% and extended payment terms by 35 days. And interestingly, 83% of suppliers reported having a positive experience negotiating with the chatbot.
These are just a few examples of how AI is impacting organizations ability to effectively deliver powerful new integrated experiences that didn’t exist a short time ago.
Big Change, New Risks
With any big change, new risks emerge. Computing power uses significant amounts of energy, and as industry races ahead of academia and policy formation, ethical and regulatory guidelines are only just maturing. Organizations are stepping up to ensure AI can be a force for good and ensure we protect society from unintended consequences.
Google and Microsoft are leading efforts to offset their carbon footprints by investing in renewable energy and improving the energy efficiency of their AI infrastructure. The European Union Agency for Fundamental Rights research into privacy protection and bias mitigation are steps toward addressing these challenges. Organizations like Anthropic advocate for responsible AI development and equitable access to AI technologies. And initiatives like the Partnership on AI and research focussed on ensuring AI development aligns with societal values and ethical standards continues to unfold.
AI is set to have a greater impact on society than any previous technology, driving rapid changes that require proactive and collaborative efforts to manage effectively. It is imperative that organizations assess the impact and opportunity AI presents for their industry, workforce, customers and business models soon. By doing so, it is possible to mitigate risks, get ahead and unlock the full potential of AI, ensuring it serves as a force for good for your organization, and in our world.
Talk to Sam about assessing the impact AI could have on your organization, or learn more about our services.