Five Top Tech Takeaways: GenAI and CFOs + Impact on Jobs, Gartner's Take on AI & the Hype Cycle, and how Anguilla is Cashing In on AI

Descending from the Peak of Inflated Expectations

Gartner's AI Hype Cycle 2023: We Are at the Peak of Inflated Expectations

Gartner’s 2023 AI Hype Cycle places generative AI and foundation models at the "Peak of Inflated Expectations," indicating a mixture of success and failures in these technologies. Other technologies like smart robots, responsible AI, and neuromorphic computing are also at this peak, poised to enter the "Trough of Disillusionment." The most mature technologies are situated on the "Slope of Enlightenment," which includes computer vision, data labelling and annotation, and cloud AI services. None have yet reached the "Plateau of Productivity," the stage at which the technology is mainstream and consistently beneficial. The report suggests that these emerging technologies are not just hype; they have high or transformative potential benefits across industries. However, data and analytics leaders should be cautious and ask specific questions before investing in these technologies. (Source: TechRepublic)

WSJ on Why CFOs Can’t Afford to Ignore Generative AI

As generative artificial intelligence (AI) technology matures, CFOs are exploring its potential for enhancing accounting and finance operations. Companies like Zoom and Ford have already started to implement AI tools for tasks like predictive analytics and automating routine jobs. While AI promises to drastically improve efficiencies and cost savings, CFOs must navigate concerns surrounding data security, reliability, and interpretability of AI decisions. Experts advocate for a proactive approach, advising CFOs to integrate AI into their long-term strategies to avoid falling behind competitors. Additionally, it is crucial for CFOs to evaluate the ROI of these technologies carefully, especially as they can significantly impact selling, general, and administrative costs. As AI continues to evolve, CFOs must plan for its scaled implementation as early as 2025. (Source: Wall Street Journal)

Anguilla to Generate $30 Million from .AI Domains in 2023

Anguilla, a small Caribbean island, is experiencing a surge in revenue thanks to its top-level domain, ".ai," which has become increasingly popular among artificial intelligence (AI) startups and tech giants alike. While Anguilla has been assigning the .ai domain since the 1990s, recent advancements in AI have driven a dramatic increase in registrations. Vince Cate, the manager of the .ai domain for Anguilla, estimates that the island will generate up to $30 million in domain registration fees for 2023. Tech companies like Google, Facebook, and Microsoft also own .ai domains, emphasizing their focus on AI technologies. The island, which largely relies on tourism, brought in $7.4 million from .ai domain registrations in 2021 and anticipates significantly exceeding its initial 2023 estimate of $8.3 million. The recent launch of ChatGPT is cited as a contributing factor to the uptick in demand for .ai domains. (Source: Bloomberg)

Generative AI and Its Impact on Employment: A McKinsey Analysis

A report exploring the impact of Generative AI was published by McKinsey in July. By 2030, automation could affect up to 30% of hours currently worked, with generative AI mostly enhancing roles in STEM, creative, and business fields. In contrast, customer service, food service, and office support jobs may continue to decline. Federal investments in climate and infrastructure are expected to shift jobs from fossil fuel sectors to green industries and create a net gain in employment. The report also indicates that healthcare, construction, and transportation are likely to see increased job demand. Women and low-wage workers are identified as the most vulnerable to these occupational shifts. The report had these takeaways:

Jobs in Demand

• STEM Professions: Science, Technology, Engineering, Mathematics
• Creative Professions: Artists, designers, writers
• Business and Legal Professionals: Lawyers, business analysts, consultants
• Green Industries: Renewable energy technicians, environmental scientists
• Healthcare Workers: Nurses, doctors, healthcare administrators
• Construction Workers: High demand due to infrastructure projects
• Transportation Services: E-commerce growth necessitates more drivers and logistics professionals

Shrinking Job Sectors

• Food Services: Many people are leaving this sector
• Customer Service: Likely to be hit by automation
• Office Support: Decline due to automation
• Oil and Gas: Employment will shift due to climate policies
• Automotive Manufacturing: Expected to decline as electric vehicles rise
• In-person Sales: Decrease due to the rise of online shopping

Hardest to Fill

• Construction: Already short almost 400,000 workers
• Healthcare: Demand will increase with an aging population
• Specialized STEM Roles: High skill requirements make these hard-to-fill
• Green Industry Jobs: As a nascent industry, finding skilled workers may be a challenge

(Source: McKinsey)

The Future of White-Collar Jobs in the Age of Generative AI

Generative AI technologies promise monumental macroeconomic benefits, potentially doubling U.S. productivity growth rates and adding trillions to the global economy. However, these technologies also threaten to disrupt various professions, including knowledge workers and white-collar professionals. Generative AI is being integrated into tasks like summarizing documents, content creation, and data analysis, areas that were typically the domain of higher-wage employees. Companies are cautiously optimistic about the technology, although concerns about AI's limitations and ethical questions around labour displacement are pressing. Industry reports by McKinsey and Goldman Sachs indicate that the gains could be massive but must be managed carefully to ensure they don't result in adverse social and economic impacts. (Source: Wall Street Journal)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

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Redditor Robots Rioting

McKinsey's Take on the Trillion-Dollar Potential of Generative AI

Generative AI's potential to significantly boost global economic value could add between $2.6 trillion and $4.4 trillion annually across diverse use cases, enhancing AI's overall impact by 15-40%. This technology can automate up to 70% of current work activities and may advance the timeline for automation of half of today's tasks to between 2030 and 2060. Further, it could stimulate labour productivity growth between 0.1% to 0.6% per annum through 2040. However, fully leveraging generative AI's benefits necessitates managing inherent risks and supporting workforce transitions with new skills development. Despite its potential, the journey toward full realization is nascent, and substantial challenges remain. (Source: McKinsey)

Revolt at Reddit: Reddit's API Pricing Protest

The "Reddit Revolt" is a significant user and developer backlash against Reddit due to changes in its API pricing, which are predicted to lead to the shutdown of many third-party apps like Apollo and "rif is fun for Reddit". The discontent has been fuelled by perceived miscommunications and alleged dishonesty from Reddit's CEO, Steve Huffman, regarding these changes, including incoming restrictions on third-party apps displaying NSFW content. In response, over 100 subreddits have "gone dark" in protest, and nearly 4,500 communities are pledged to do so. Some speculate that these changes are due to Reddit's plans to go public. (Source: TheVerge)

Mistral AI Sets Sights on OpenAI with $113 Million Seed Funding

Mistral AI, a month-old startup based in Paris, has raised a staggering $113 million in a seed funding round to develop large language models and generative AI, aiming to compete with OpenAI. The funding round was led by Lightspeed Venture Partners and involved significant contributors from across Europe, including Bpifrance and former Google CEO Eric Schmidt. Mistral AI, co-founded by former Google DeepMind and Meta professionals, plans to focus on open-source solutions and target enterprises. The company's first models for text-based generative AI are expected to be launched in 2024. It aims to provide businesses with tools that simplify the integration and use of AI, with a particular focus on open-source models that use publicly available data. This strategy is designed to avoid legal issues related to training data. (Source: TechCrunch)

First-of-its-kind AI Legislation Advances in EU Parliament

The European Union's parliament is advancing draft legislation known as the AI Act, potentially the first comprehensive set of regulations governing Artificial Intelligence (AI) in the West. This act includes prohibitions on real-time remote biometric surveillance in public spaces and restrictions on developing facial-recognition databases from surveillance footage or internet scraping. The legislation also aims to control predictive policing systems and regulate how companies train AI models with large datasets. In certain scenarios, companies would have to disclose when content is AI-generated and ensure their AI models don't produce illegal content. Businesses would also need to summarize the copyrighted data used to train their models, giving content creators a potential claim to a share of profits. The proposed act could impose fines of up to 6-7% of a company’s global revenue for certain non-compliance cases. Negotiations to finalize the legislation are to begin immediately, with the aim of reaching a deal before year-end. Some tech researchers support these rules, arguing they could help establish safety standards and slow down the rush to release advanced AI tools. However, tech companies and lobbyists argue that overly prescriptive rules could hinder innovation. (Source: WSJ)

AMD's Chase for Trillions Stumbles: Stock Prices Slide Despite Bold AI Chip Announcement

AMD revealed details of its upcoming artificial intelligence (AI) chip designed to compete with industry leader Nvidia. Expected to be available in Q3 with mass production in Q4, the chip boasts 192 gigabytes of memory, potentially assisting tech companies in managing the costs of AI services like ChatGPT. However, AMD refrained from disclosing the early adopters or the price of the new chip. While the lack of a major client announcement led to a dip in AMD's share price, the company remains optimistic about the chip's potential. The firm also announced high-volume shipments of a general-purpose central processor chip named "Bergamo" to companies, including Meta Platforms. AMD's strategic moves indicate their intention to vie for market share in the AI chip market, currently dominated by Nvidia, and bolster their valuation. (Source: Reuters)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Did McKinsey predict Google Now?

From a business perspective, one of the key publication on the phenomenon is the McKinsey report entitled, "Big data: The next frontier for innovation, competition, and productivity". Although the report does not specifically mention Google, it predicted that Big Data would enable personal productivity and noted the following example to support its case:

"An example is a mobile phone that has learned its owner’s habits and preferences, that holds applications and data tailored to that particular user’s needs, and that will therefore be more valuable than a new device that is not customized to a user’s needs"

Well McKinsey was right on the money as Google introduced "Google Now", which would announce scores of one's favourite sports team - based on the person's search history. However, where does Big Data fit into this?

One of the applications that really illustrates the power of Google Now is the linking of traffic data to one's calendar to inform the person that they are going to be late for a meeting due to traffic issues. The video here lists other features:

The price for this (of course) is giving up one's personal data.

Regardless, it illustrates how Big Data is being a ubiquitous part of life. One other Google product that was released at their recent I/O conference in May, is the ability to use speech to search for things.

As you watch the video, you can almost see the wheels churning in the background to process the query. (I was able to replicate the voice search in my Chrome browser, but was not able to get it to do a context search. But I am not sure if I had to enable something to do that)

This ability to process query by voice, of course, will be quite useful for the upcoming Google Glass (I wrote earlier about it here), which is expected to be released in 2014.

However, it must be repeated that McKinsey was dead on the money with this one.