Generative AI has recently emerged as a popular term, with some experts comparing its potential impact to that of the internet. Despite some skepticism surrounding the hype, the recent launch of OpenAI’s ChatGPT has demonstrated the potential of text-based generative AI to generate unique and original content based on textual prompts. This latest wave of AI is expected to revolutionize the way individuals and organizations create and interact with technology. As this technology continues to evolve and mature, there is a growing interest among researchers and practitioners to explore its potential applications and impact on society.

ChatGPT is a powerful example of the potential of generative AI technology, with the ability to engage in lengthy and coherent dialogues, answer questions, and generate a diverse range of written material, including business plans, advertising campaigns, poems, jokes, computer code, and movie screenplays. While its accuracy may not always be perfect, ChatGPT is just one of many examples of generative AI technology.

As an indication of the importance of generative AI to the future of technology, Microsoft has invested over US$3 billion in OpenAI and announced a "multiyear US$10 billion investment" in the technology. This underscores the growing importance of OpenAI’s AI tools to Microsoft and its competition with other major tech companies like Google, Meta, and Apple. The potential of generative AI is too significant to ignore, and it is likely to play a crucial role in changing the way we live and work.

According to reports from the New York Times, the launch of OpenAI’s ChatGPT has raised concerns within Google, prompting the company to develop a version of its search engine with chatbot features that it plans to demonstrate later this year. Additionally, Google plans to unveil more than 20 projects powered by artificial intelligence, demonstrating the company’s commitment to the growing field of generative AI.

Both Google and Microsoft are heavily investing in generative AI technology, recognizing it as a crucial component of their future strategy. This marks a significant shift for Microsoft, which has not historically been a first mover in the search landscape. It is exciting to see what both tech giants will bring to the table in response to this rapidly evolving technology.

The level of investment by these trillion-dollar companies shows that generative AI is not in its early stages, but rather a rapidly growing and significant field. It is clear that generative AI will play a vital role in shaping the future of technology, and companies like Google and Microsoft are positioning themselves accordingly.

The current revolution in AI, marked by the rise of foundational models and Large Language Models (LLMs) like ChatGPT, can be traced back to the development of transformer neural networks around 2017. These models are trained on broad data using self-supervision at scale, which enables them to adapt to a wide range of downstream tasks.

Looking ahead to the next half-decade, generative AI is poised to have significant implications for businesses, portfolios, and regulatory structures. Major enterprise technology companies are keen to capitalize on this growing interest in generative AI, with CNBC reporting that top companies like Salesforce, Snap Inc., and Shopify are integrating AI-enabled chatbots with OpenAI’s ChatGPT API for new features into their business software apps.

Even hedge fund managers like Ken Griffin of Citadel have recognized the potential of generative AI, noting that this technology can help developers write better code, translate software between languages, and analyze various types of information. The common man is using it for a variety of things from planning design thinking sessions to having it build a complex travel itinerary. There are instances where generative AI can be used in call centers. With such widespread interest and investment in generative AI, its future looks exciting and transformative.

2023 is poised to be the most exciting year of AI yet!

The unprecedented disruption of the economy has prompted businesses to re-evaluate their priorities and focus on delivering value at scale, driving outcomes, and leveraging the potential of AI to create new opportunities for their businesses, employees, and society. According to McKinsey, generative AI and other foundational models are transforming the AI landscape, taking assistive technology to new heights, and reducing application development time.

These powerful capabilities are now accessible to non-technical users, opening up new possibilities and changing the game for businesses across industries. With such transformative potential, it’s clear that AI will play an increasingly critical role in shaping the future of work and society as a whole. One of the biggest things to watch for is using Generative AI responsibly.

While these models are still in the early stages of scaling, we are already beginning to see the first wave of applications across various functions. Some of these applications include:

• Marketing and sales: Generating personalized marketing and social media content, as well as technical sales content such as text, images, and video. Creating customized assistants for specific businesses, such as retail.
• Operations: Generating task lists to improve the efficiency of executing various activities.
• IT/Engineering: Writing, documenting, and reviewing code to streamline the development process.
• Risk and legal: Answering complex questions and pulling information from vast amounts of legal documentation. Drafting and reviewing annual reports.
• R&D: Accelerating drug discovery by gaining a better understanding of diseases and discovering new chemical structures.
• Healthcare: Using generative AI models to assist healthcare providers in identifying potential issues that may have otherwise been missed.

As these models continue to evolve and scale, we can expect to see even more applications across various industries and functions. The potential of generative AI to improve efficiency, speed up processes, and uncover new insights is vast, and it is exciting to see how it will continue to transform various fields in the years to come.

According to a recent paper published by Stanford University’s Institute for Human-Centered Artificial Intelligence, the potential opportunities and risks of these models are vast. While they have the potential to complement human labor, making us more productive and creative, they could also amplify existing biases and erode our trust in information. To ensure that these technologies benefit society as a whole, interdisciplinary collaboration is essential.

The authors emphasize the need for a collaborative approach that incorporates diverse perspectives from various fields, including computer science, ethics, social science, and policy. By working together, we can ensure that these technologies are developed and implemented in a way that maximizes their benefits and minimizes their risks.

Why businesses should start the AI journey now

Recently, due to the profound and interconnected concepts of deep learning and large data, we seem to have reached an inflection point in the ability of AI-powered machines to generate language, images, audio, and more.

A recent study by PricewaterhouseCoopers (PwC) suggests that AI will contribute over US$ 15 trillion to the global economy by 2030. However, a study by IBM and Morning Consult in 2023 revealed that only 35% of organizations worldwide have adopted AI in their enterprises. To reach the projected growth by 2030, a much broader adoption of AI is needed. Businesses need to embrace the potential of AI or risk being left behind, like Blockbuster and Kodak.

Organizations that are quick to adapt and innovate with technology can capture a share of this US$ 15 trillion market. When companies learn to leverage their firm around data, analytics, and AI, they remove the traditional constraints on scale, scope, and learning that have restricted business growth for decades. From Airbnb to Starbucks and Microsoft to Amazon, research shows how AI-driven processes are vastly more scalable than traditional processes.

My latest book, ‘The AI Factor: How to Apply Artificial Intelligence and Use Big Data to Grow Your Business Exponentially,’ features a foreword by Dr. Seth Dobrin, a renowned AI expert and former IBM Global Chief AI Officer. It explores the frameworks, methodologies, data governance, culture, talent, and best practices that leading organizations are utilizing to unlock the potential of artificial intelligence tools. By adopting these practices, businesses can evolve their practices and drive value at scale across their enterprises.

However, many organizations face common challenges when implementing AI, such as data access and quality issues, governance, lack of operationalization and business impact, lack of visibility and control, scarce and underused data experts, and costly and complex infrastructure.

To stay ahead of the curve and seize the opportunities presented by AI, organizations must adopt practical strategies and best practices for leveraging these technologies. By addressing common challenges and adopting proven methods, businesses can harness the full potential of AI to achieve their goals and drive growth at scale. With the right mindset, culture, and investments, any organization can evolve and thrive in the age of AI.

About the Author

Asha Saxena is the Founder and CEO of Women Leaders in Data and AI (WLDA), an exclusive membership organization for senior leaders in Data and AI, helping them succeed both personally and professionally. She is also a professor at Columbia University in NYC, teaching graduate students health care consulting and entrepreneurship, and is a partner with CEO International, where she coaches CXO leaders.

Saxena has served on several for-profit and nonprofit boards, and is a contributor and international speaker on various technology, data, AI, and women-related issues. She is a member of the CDO Magazine Global Editorial Board.