AI is the wild west right now market research analyst tells panel
“AI spending worldwide will increase to $154 billion this year, a jump of over $30 billion YoY. But it will also weed out low-performing companies. This is the wild west right now in AI companies,” market research firm Insider Intelligence’s analyst, Yoram Wurmser, told a generative AI panel, the company reports.
“If you can show that you have an application for AI, you’re getting money right now. And a lot of these are built on pretty shallow foundations that can be replaced by the next generation of AI.”
“I think there’s going to be a lot of emphasis not on building larger and larger models, but building more models that are better aligned with the goals of people that are interacting with them”.
As an example the report takes an AI system for marketers that would be specifically developed to drive, measure, and respond to KPIs such as clicks or conversions.
“Specialized AI will mark a shift from experimentation into increased efficiency, but that could also usher in job loss”, the report says.
Wurmser thinks AI is going to have a massive impact on innovation and productivity.
The report says a focus on AI assisting people rather than the other way around would be ideal, “but it’s not an assured outcome right now.”
One of ChatGPT’s limitations is privacy, the report says.
“ChatGPT is very explicit that it owns all the data that you give it,” said analyst Dan Van Dyke. That means businesses have to be careful about sharing customer information.
“I think it’s particularly concerning for retailers in regions with strict data privacy laws, such as the EU, and regulators are already taking a bit of an interest there,” said analyst Carina Perkins.
AI also risks plagiarism or spreading disinformation.
“Use your oversight to really make sure that you’re not producing content that is misaligned with what you want to do, that the content is not providing you false information, and that the content isn’t plagiarizing something else,” said Wurmser.
Van Dyke warned users to watch out for “hallucination,” or total falsehood, and “algorithmic bias” in AI.
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