Generative AI: Riding the new general purpose technology storm

Abstract

Generative AI promises to revolutionize many industries (entertainment, marketing, healthcare, finance, and research) by empowering machines to create new data content inspired by existing data. It experienced exponential growth in recent years. In 2023 breakout year Gen AI impact reached 2.6-4.4 trillion USD (2.5-4.2% of global GDP). The development of modern LLM-based models has been facilitated by improvements in computing power, data availability, and algorithms. These models have diverse applications in text, visual, audio, and code generation across various domains. Leading companies are rapidly deploying Gen AI for strategic decision-making at corporate executive levels. While AI-related risks have been identified, mitigation measures are still in early stages. Leaders in Gen AI adoption anticipate workforce changes and re-skilling needs. Gen AI is primarily used for text functions, big data analysis, and customer services, with the strongest impact in knowledge-based sectors. High-performing AI companies prioritize revenue generation over cost reduction, rapidly expand the use of Gen AI across various business functions, and link business value to organizational performance and structure. There is a notable lack of attention to addressing broader societal risks and the impact on the labor force. Gen AI creates new job opportunities and improves productivity in key areas. Future investment in AI is expected to rise. Concerns about the potential AI singularity, where machines surpass human intelligence, are subject to debate. Some view singularity as a risk, others are more optimistic based on human control and societal constraints. Leading experts in Gen AI predict that the coming decade can be the most prosperous in history if we manage to harness the benefits of Gen AI and control its downside.