Why generative AI can make creative destruction more creative but less destructive Small Business Economics

AI: The Earth Changing Factor Leading the Fight in 2024 for a Sustainable Future

The Economic Potential of Generative AI: The Next Frontier For Business Innovation

Earlier this year, we identified a category of geopolitical swing states – non-great powers with the capacity, agency, and increasingly the will to assert themselves on the global stage. Different countries and companies have diverse histories, contexts, capabilities, and risk tolerance when it comes to AI. ­Notwithstanding these differences, leaders have the same window of maximum flexibility to shape an AI-enabled future. This window will be brief – a few years at most – then views and strategies will harden, and norms, values, and standards will be embedded within the technology. While the technology will continue to progress, decisions made today will determine what is possible in the future. Countries will have devised their approaches and formed likeminded blocs, competition will increase, the costs of changing course will rise, and the available paths for companies and countries will be more determined.

The Economic Potential of Generative AI: The Next Frontier For Business Innovation

This underscores that state and regional initiatives will need to play a role as the nation moves to build up more variegated AI ecosystems in more places. Accordingly, the nation should multiply efforts to build a diverse and widely distributed AI workforce. Employing the same urgency needed to build regional AI ecosystems, Congress should Regional Innovation Engines and Regional Tech Hubs programs, which are orientated to skills-building as well as innovation.

Current landscape of AGI research: Different approaches of AGI

Large service sectors—the areas of the economy that fall outside of manufacturing and trade that now account for almost 80 percent of U.S. employment—fared even worse, with pre-pandemic productivity growth of just 0.16 percent, almost zero. For the better part of a decade, we’ve been hearing about how Canada is having a tech moment. Academics, politicians, journalists and industry experts have rightfully been impressed by the quality of talent and innovation this country produces and the scale at which it grows.

The Economic Potential of Generative Next Frontier For Business Innovation

The opportunity to upsell is extremely attractive, and cloud software players could also improve stickiness with customers. Only a select group of companies currently have the talent and data assets necessary to train and build large language models. Cloud companies are expected to play a pivotal role in the distributing artificial intelligence – building pipelines and platforms to disseminate AI models from developers to end users. Moreover, AI developers themselves are expected to be voracious consumers of cloud services, building and deploying models of the future natively on the cloud. Overall, semiconductor export controls’ importance will increase as future AI-enabled capabilities require greater computing power than legacy chips are able to provide.

Accelerating AI with synthetic data

In this article, our member KPMG reports on the challenge for European banks to find a balance between a sound digital transformation and managing the expectations of regulators. This situation reflects a natural tradeoff, where riskier projects have a greater value for consumers if they succeed compared to less risky projects . As such, Generative AI has attracted interest from traditional (e.g., Venture Capital (VC), Mergers & Acquisitions (M&A)) and emerging (e.g., ecosystem partnerships) sources. In 2022 alone, venture capital firms invested more than $2B, and technology leaders made significant investments, such as Microsoft’s $10B stake in OpenAI and Google’s $300M stake in Anthropic. Organizations will build models themselves, using private IP, to serve a specific purpose or niche. Security risks, privacy risks and reputational harm were the top three concerns of execs in our survey with generative AI.

Also, if you think about the productivity boost that we might get from AI, perhaps that counteracts some of the demographic shifts of slowing population growth. It certainly is going to take some time for this to mature, but overall, we think the efficiency gains from gen AI should absolutely drive incremental cost savings for most enterprises and provide a pretty-strong tailwind to profit margins. The business models employed by the companies in the social media industry may not prove to be successful. E-commerce, an industry closely aligned with social media as retailers continue to coalesce the two, also stands to benefit greatly from generative AI. Traditionally, AI has been used behind the scenes for fraud detection, predicting customer intent, and recommendation systems.

Global AI projects, local privacy laws embracing privacy by design

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The Economic Potential of Generative AI: The Next Frontier For Business Innovation


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