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But let’s see where it comes from.
The hype surrounding Open AI’s ChatGPT has led 45% of executives to increase their investments in artificial intelligence, a new Gartner survey reveals.
“The artificial intelligence generative frenzy shows no signs of abating,” Frances Karamouzis, distinguished vice president analyst at Gartner, said in a statement.
Venture capital firms have invested more than $1.7 billion in generative AI offerings in the past three years, according to Gartner research published in January 2023. The areas that have received the most funding so far are software coding of AI and AI-enabled drug discovery.
“Organizations are struggling to determine how much money to pour into generative AI solutions, which products are worth the investment, when to start, and how to mitigate the risks associated with this emerging technology,” Karamouzis said.
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Generative AI has more advantages than disadvantages
The survey found that 68% of executives believe the benefits of generative AI outweigh the risks, compared to just 5% who believe the risks outweigh the benefits. However, Karamouzis believes executives may begin to change their perspective as investments deepen.
“Initial enthusiasm for a new technology can give way to a more rigorous analysis of the risks and implementation challenges,” Karamouzis said. “Organizations are likely to encounter a range of trust, risk, security, privacy and ethical issues as they begin to develop and deploy generative AI.”
I WILL SEE: Learn how to use ChatGPT for only $20 and increase results (TechRepublic Academy)
CX is the impetus for most generative AI investments
Despite continued economic uncertainty, only 17% of executives indicated that the primary goal of generative AI investments was cost optimization, noted Gartner Distinguished Vice President Analyst Bern Elliott. Another 38% focused on customer experience/retention, while 26% focused primarily on revenue growth. “This is significant, because it indicates that generative AI is perceived to offer broad new opportunities,” Elliot said. “I found this to be a useful break, as I get a lot of queries related to generative AI and ChatGPT related to customer service.”
As organizations begin to experiment with generative AI, many are starting with use cases like media content enhancement or code generation. While these efforts can be a strong initial value-add, generative AI has great potential to support solutions that augment humans or machines and autonomously execute IT and business processes.
When asked to characterize the stage of generative AI adoption they were in, 70 percent indicated research or exploration mode, Elliot said. Another 15% were in pilot mode and only 4% indicated production mode, he said.
“This is significant because it indicates the early-stage nature of this technology. ChatGPT only entered the main stage and media hype in late December,” Elliot noted. “A lot of my inquiries are interested in use cases and understanding what the opportunities are.”
In the past month alone, Elliott has seen a shift toward increasingly applied issues such as governance, operations and techniques, he said.
5 possible use cases for generative AI
Looking ahead, Gartner believes that generative AI will not only augment and accelerate designs in many vertical industries, but also has the potential to “invent” new designs or objects that humans don’t have.
According to Gartner, AI use cases for generative AI are accelerating, specifically in five areas:
- Drug design.
- Materials science.
- Chip Design
- Synthetic data.
- Design of pieces.
“Autonomous businesses, the next macro phase of technological change, can mitigate the impact of inflation, talent shortages and even the economic crisis,” Karamouzis said. “CEOs and CIOs (who) leverage generative AI to drive transformation through new products and business models will find massive opportunities for revenue growth.”
The potential risks of generative AI
Gartner noted that it is important to recognize that generative AI carries risks, including the potential for deep counterfeiting and copyright infringement.
And in separate but related news, Geoffrey Hinton, who is often referred to as the “godfather of AI,” told The New York Times that he left his job at Google, citing concerns about the dangers posed by the technology. Hinton said he wants to be able to speak freely about the risks of AI and worries that bad actors can’t be prevented from using it.
After OpenAI unveiled a new iteration of ChatGPT in March 2023, more than 1,000 technology leaders and researchers signed an open letter calling for a six-month moratorium on the development of new systems, citing the “profound risks to society and humanity”.
Survey methodology
This survey was conducted among 2,544 respondents as part of a March-April 2023 Gartner webinar series on the business impact of ChatGPT and Generative AI. The survey results do not represent global results or the market as a whole, Gartner said.
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The artificial intelligence (AI) industry has been booming over the past several years due to the surge in investment that’s been pouring into developmental research and implementation. One of the newest advancements that is showing a tremendous amount of potential is ChatGPT, a machine learning-driven chatbot. With its ability to generate highly personalized conversations for its users, ChatGPT has become a major player in the AI industry. Venture capital firms have taken notice, and have started to invest heavily in this sector for the potential it holds for the future.
At the forefront of these investments is Ikaroa, an up and coming full-stack tech company that is focused on bringing cutting edge AI solutions to the market. With its team of experts, the company is working on developing several products utilizing ChatGPT and other generative AI technologies. This will benefit both their customers, who will be able to make use of the products to enhance customer experience, and the venture capital investors, who will potentially be able to reap huge returns on their investments in generative AI technology.
The potential that ChatGPT holds, when combined with generative AI technology, is enormous. Not only can it be used to power customer service systems that are capable of understanding customer inquiries and generating intelligent conversational answers but it can even be used to develop automated assistants that can be used to simplify complex or mundane tasks. This is why investors have decided to put so much faith into generative AI technology, with Ikaroa leading the charge.
Investors have good reason to trust in the visionary possibilities ChatGPT and generative AI technology offer. With the marked progress in both fields, AI products and services will become more powerful and useful in the near future. Customers are just as excited, as ChatGPT-based and generative AI products have the potential to dramatically improve customer service experience and boost customer satisfaction.
The AI industry has welcomed the interest in generative AI technology among the investor community, especially with the major investments being made by Ikaroa. With their stellar team of experts and the resources they are pouring into developing ChatGPT and generative AI-based products, the prospects seem very promising. The AI industry is eagerly following their progress and is looking forward to what they will be able to bring to the market in the near future.
