Generative AI will get a ‘Cold Shower’ in 2024, analysts predict

☕️ Greetings! It's Wednesday, October 11th. Welcome back to my daily dive into the AI landscape.

♨️ The 2024 outlook for Generative AI appears grim according to a report by CCS Insight, citing escalating costs that could dampen the fervor surrounding this technology. The report suggests a “reality check” is due, especially for smaller developers finding it increasingly pricey to operate in this sphere. It also touches on the anticipation of a sluggish pace in EU's AI regulation owing to the swift technological advancements. While big tech firms venture into designing specialized AI chips to manage costs, the prohibitive expenses of deploying generative AI may pose significant hurdles for many players in the industry.

Reference: (‘Overhyped’ generative AI will get a ‘cold shower’ in 2024, analysts predict)

🗞️ Today’s Highlights:

• LATEST NEWS & TRENDS — How Generative AI is Changing the Way We Harness Our Data

• INDUSTRY | FUNCTION — Google announces new generative AI search capabilities for doctors

• RESOURCES — How Knowledge Workers Think Generative AI Will (Not) Transform Their Industries

• WORK — Only 25% of business executives anticipate workforce reduction as the primary impact of generative AI, says MIT Technology Review Insights' new research report

• AI TOOLS — InterviewBot: Ace the interview. Get the job.

🗞️ LATEST NEWS & TRENDS

1️⃣ Generative AI, especially as a service, empowers businesses to transform abundant data into actionable insights, enabling efficient decision-making and personalized customer experiences. By leveraging large language models, companies can automate content creation, optimize operations through digital twins and predictive analysis, and expedite innovation. Notable cloud service providers like AWS, Microsoft Azure, and Google Cloud offer platforms for easy integration and scalability of generative AI solutions, which, when coupled with a robust network solution like Megaport, can significantly enhance real-time data processing, security, and operational cost efficiency.

Reference: (How Generative AI is Changing the Way We Harness Our Data)

2️⃣ The convergence of real-time data analytics and rapid Generative AI advancements is pushing tech giants like Amazon and Microsoft to innovate, with the Generative AI market projected to skyrocket to $1.3 trillion in a decade. This computational evolution is straining data centers, urging the need for efficient power solutions like Gallium Nitride (GaN) semiconductors. GaN, with superior performance, addresses the rising power demands and the Power Usage Effectiveness (PUE) metric loophole, promising a sustainable, cost-effective path for data centers amidst the burgeoning Generative AI era.

Reference: (AI in Data Centers: Increasing Power Efficiency with Gallium Nitride (GaN) Semiconductors)

Image source: MDPI

3️⃣ Generative AI is significantly augmenting public sector operations by automating administrative tasks, elevating citizen services, and reducing operational costs. Singapore and the Philippines showcase its potential, with the former integrating AI in medical imaging and governmental chatbots, and the latter tackling data quality issues in its national ID system. While transformative, it's vital to address ethical, privacy, and data security concerns, ensuring a balanced human-AI collaboration for optimized, ethical service delivery in the public sector.

Reference: (Generative AI: A Game-Changer for Public Sector Automation)

4️⃣ Generative AI's swift advancement poses an imminent cybersecurity threat to the banking sector, as highlighted by the Federal Reserve's Vice Chair, Michael Barr. He foresees a tech tug-of-war between malicious AI uses and defensive AI measures within finance. Barr urges financial entities to invest in generative AI for cyber defense, and stresses managing cyber risks in partnerships with third parties. The interconnectedness of financial systems means a small breach can trigger a domino effect, making comprehensive cyber risk management essential.

Reference: (Banks face AI ‘arms race’ in battle against cyber threats: Barr)

5️⃣ The adoption of generative AI is gaining traction with over 2 in 5 executives revealing their organizations are in the piloting phase, a notable increase from earlier in the year, as per a Gartner survey. This shift follows the debut of influential tools like ChatGPT. While vendors enhance AI safety and performance, 78% of executives now see the benefits outweighing risks. Notably, enterprises are exploring generative AI across various domains including software development, marketing, and customer service, aiming to find valuable use-cases and ensure adept knowledge transfer to leverage this technology.

Reference: (More companies are ramping up generative AI pilots)

🗞️ INDUSTRY | FUNCTION

Google Cloud has launched AI-driven search features on its Vertex AI Search platform, designed to help healthcare professionals swiftly access data from diverse sources. This initiative aims at solving the problem of information fragmentation across various systems, making it easier for clinicians to retrieve necessary data from medical records, clinical notes, and scanned documents. The move is expected to significantly cut down the time and effort spent by healthcare workers on data retrieval, improving overall efficiency in the healthcare sector.

Reference: (Google announces new generative AI search capabilities for doctors)

🗞️ RESOURCES

This paper discusses a quantitative study that explores knowledge workers' outlook on generative AI across seven industries through workshops in three US cities. Participants mainly see generative AI as aiding in menial tasks under human oversight, contrasting widespread media and academic views of it disrupting knowledge sectors. They foresee generative AI intensifying four existing industry challenges: deskilling, dehumanization, disconnection, and disinformation, shedding light on its potential real-world impacts, thereby presenting new inquiry avenues for the HCI community.

Reference: arxiv (How Knowledge Workers Think Generative AI Will (Not) Transform Their Industries)

🗞️ WORK

A report by MIT Technology Review Insights, alongside Adobe, EY, and Owkin, delves into global leaders’ strategic actions toward enterprise-level generative AI deployment. Surveying 1,000 business heads across various sectors, it underscores a cautious adoption stance despite 96% acknowledging generative AI's potential impact. A mere 9% have fully embraced it, hinting at a broader wait-and-see attitude. Cooperation with startups and tech giants is deemed pivotal for scalable deployment. Notably, small enterprises are ahead in adoption compared to mid-sized counterparts. While a quarter foresee workforce reduction as a key outcome, regulatory uncertainty prevails as a major hurdle, reflecting a landscape of anticipation and cautious optimism toward this technological frontier.

Reference: (Only 25% of business executives anticipate workforce reduction as primary impact of generative AI, says MIT Technology Review Insights' new research report)

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_{I'm not a newsletter expert so you might find my approach a tad different. In my daily dives into the world of AI, I handpick the latest gems, initially to support the AI projects that I’m working on. Realizing that these snippets might resonate with others, I thought, "Why not share this with my community and fellow AI enthusiasts?" I truly want this newsletter to be valuable to you so if there's anything on your mind—praises, critiques, or just a hello—please drop me a note. You can hit reply or shoot me a message directly at my email address: [email protected].}