Advancements in Generative AI Driving the Evolution of Businesses

By: Rooz Aliabadi

With each earnings season comes a new set of buzzwords, and one phrase likely to be heard frequently this time is “generative artificial intelligence (AI).” Since the remarkable debut of ChatGPT, a conversational AI, companies have been enthusiastic about tapping into the potential of generative AI to boost productivity. For example, insurance companies have already begun utilizing a customized version of ChatGPT to simplify lengthy claims documents, which I have experienced firsthand with my auto insurance. Meanwhile, toy and educational companies use another tool, DALL-E, which generates pictures based on text prompts to design new toys and educational materials. Biotech firms are also using this technology to aid in developing therapeutic antibodies. Many other companies are exploring the potential of generative AI, venturing into this new and uncharted territory.

The architects of instruments in the knowledge economy have fully embraced the frenzy of innovation. Microsoft recently announced a series of product updates allowing office workers to delegate tasks such as drafting emails, summarizing documents, and writing computer code. The head of AI for Microsoft’s cloud computing division described the company’s release schedule as “like working in dog years.” Other companies such as Alphabet, Adobe, Salesforce, and Bloomberg are also improving their tools for professionals such as creatives, salespeople, and finance experts. In addition, startups like Harvey, a legal assistant similar to ChatGPT, and Jasper, a writing aid, have rapidly emerged.

Despite the numerous experiments being conducted, companies must figure out how to best use AI’s newfound capabilities. Companies tend to either minimize or overestimate the abilities of this technology. Thus, endeavors are underway to identify which jobs would benefit the most from AI’s capabilities. For instance, a study published by OpenAI last month analyzed the percentage of tasks within a profession that could be accelerated by at least half with the help of this technology. The study found that fields that involve extensive routine writing, number crunching, or computer programmings, such as paralegals, financial analysts, and web designers, were at the top of the list.

Companies will likely need more time to eliminate such jobs. Although generative AI can produce impressive first drafts, it requires humans to give instructions and evaluate outcomes. Microsoft’s new tool suite, aptly named “co-pilots,” highlights this collaboration between humans and AI. In Reid Hoffman’s recent book, “Impromptu,” the co-founder of LinkedIn, a social network for professionals, advises users to regard ChatGPT and other AI tools “like an undergraduate research assistant.” (Interestingly, the book was written with the help of a bot.)

It can be argued that even as coders, salespeople, and other white-collar workers become more efficient, there is no clear indication that companies will seek to reduce their numbers. While some venture capitalists have predicted that software will eventually take over the world, the reality so far is that it has only nibbled at the edges. And most companies prefer more sales rather than fewer salespeople. Nonetheless, companies looking to leverage generative AI will face several challenges. For one, many companies will need to re-evaluate the role of junior staff, seeing them more as apprentices to be trained rather than as workhorses to be pushed.

Implementing generative AI may challenge companies with outdated IT systems and scattered datasets. On the other hand, larger language models, such as the ones powering ChatGPT, are better equipped to work with unstructured datasets than earlier generations of AI.

Reserves could hinder companies’ widespread adoption of generative AI despite the potential benefits. Companies have higher standards than consumers when adopting new technology. One concern is protecting confidential or sensitive data, leading companies like JPMorgan Chase and Northrop Grumman to prohibit their staff from using ChatGPT at work. Insurance companies also restrict the use of customers’ personal information with its tool.

Trustworthiness is a significant concern with generative AI tools like ChatGPT. While they can deliver credible information, they can also generate incorrect information, a process called “hallucination.” Creating promotional materials may be fine but it can be a severe problem in other contexts. While humans can also make errors, the difference is that generative AI tools currently need to explain their reasoning or level of confidence. This lack of transparency makes them challenging to trust when the stakes are high.

The increasing risks associated with generative AI are causing concern among companies, who may become less enthusiastic about the technology as it becomes more sophisticated. There are worries about the potential for a surge in AI-generated deceptions, misinformation, and computer viruses. These concerns are prompting governments to take action, with the US Commerce Department soliciting public comments on regulating AI and the European Union updating its proposed AI legislation to account for recent developments. Italy has temporarily banned the use of ChatGPT due to these risks.

One primary concern is that introducing advanced AI could demotivate employees, who may worry about job security. However, workers are some of the most ardent supporters of the new technology. In a survey of 12,000 employees conducted in January by Fishbowl, a workplace networking app, 43% reported using tools similar to ChatGPT for work-related tasks, with the vast majority doing so without their bosses’ knowledge. Such enthusiasm suggests little weeping for the loss of menial jobs to AI. Nobody goes to law school to spend time combing through documents. This could be enough to encourage companies to continue experimenting with the technology, which could be reasonable given the stagnant productivity growth seen in wealthy nations over the past 20 years.

Generative artificial intelligence is rapidly gaining popularity as companies across various industries discover the potential of this technology. With the help of tools like ChatGPT and DALL-E, businesses are finding new and innovative ways to enhance productivity and streamline processes. The ability of generative AI to generate text, images, and other types of content is revolutionizing industries, including insurance, toy, educational, and biotech. As more companies venture into this uncharted territory, it is clear that generative AI is positioned to become a game-changer in the business world.

This Chat GPT Lesson Plan and others are available FREE to all educators at edu.readyai.org

This article was written by Rooz Aliabadi (rooz@readyai.org). Rooz is the CEO (Chief Troublemaker) at ReadyAI.org

To learn more about ReadyAI, visit www.readyai.org or email us at info@readyai.org.