State of the State: Generative AI – the Third Installment
Generative AI remains one of the hottest topics right now, and not just within marketing circles; it’s dominating legislative, scientific, and cultural discussions at large. This space is also in a state of constant evolution, which means that keeping up with all of its twists and turns is no small task. Enter our monthly generative AI POV series.
In this month’s installment, we unpack:
- An AI-powered economy
- Legislation & regulation
- Generative AI for creative support
Here’s what we know as of July 2023:
An AI-powered economy
Radical changes to the way we work will have an immense economic impact over the next decade. So, while marketers have been focusing on what generative AI can produce, investors have been looking at AI as the next big economic tailwind. According to a McKinsey report, generative AI could add between $2.6 trillion and $4.4 trillion annually to the global GDP. Earlier forecasting by Goldman Sachs estimated AI could have a nearly $7 trillion impact to global GDP each year.
With change comes opportunity, and the vision of a future powered by AI has spurred major investment. Nvidia, a leader in processors for PC gaming and cryptocurrency mining, recently reached a $1 trillion valuation as companies race to add generative AI capabilities powered by Nvidia’s hardware. Meanwhile, Accenture announced a $3 billion investment in AI and partnerships with AWS, Google, and Microsoft to offer various generative AI solutions.
Key takeaway: The power of productivity.
Generative AI has already birthed an industry devoted to creating AI-powered solutions for businesses. Soon, increased productivity from these tools will speed up the evolution of the global workforce. Automation of simple, repeatable tasks will allow human workers to focus instead on more complex and impactful tasks. Determining where and how generative AI can effectively support human workers should be a primary focus for business leaders going forward.
Legislation & regulation
Shortly after ChatGPT was unveiled to the world, industry experts, tech moguls, and politicians began raising concerns about the potential dangers of generative AI and other artificial intelligence endeavors. While some called for a pause on AI development, others lobbied for regulation of the industry.
The European Union was the first governing body to draft legislation governing AI technologies. The EU AI Act establishes tiers of risk with different requirements for the various types of AI systems and the threats they might pose. Generative AI, for example, has been deemed a limited risk, meaning platforms leveraging the technology will need to comply with transparency requirements for users within EU member states.
While the U.S. trails the EU in drafting AI-focused legislation, there is a consensus that AI technologies should be regulated. OpenAI’s CEO Sam Altman even suggested that the U.S. government should establish a regulatory agency to monitor development and uses of AI, operating in a capacity similar to other governmental bodies like the FDA and FTC. Since Altman’s testimony before Congress, Senator Chuck Schumer has unveiled a framework to develop AI legislation.
Coordination between governing bodies across the globe could lead to an international standard for AI safety and transparency.
Key takeaway: Global guardrails.
Without a global standard, varying regulations could lead to regional technologies. An AI system developed to be compliant with U.S. standards, for example, may not be able to operate in Europe or Asia. If, however, similar principles are agreed upon globally, AI development could continue in a more collaborative and cohesive manner.
Generative AI for creative support
While the general pace of innovation for text-based generative AI applications may be slowing as businesses take time to thoughtfully create or integrate chatbots, one area of the market remains at a full sprint: creative services. Whereas chatbots are becoming commonplace, tools to support creative development for advertising and marketing are still being refined.
Some of the most recent examples include:
- TikTok released an AI-powered script generator for advertisers
- Vimeo introduced AI-powered video tools, including script generation and text-based video editing
- Google launched a new text-to-speech voiceover tool in Google Ads
Key takeaway: AI-assisted creativity.
Although new generative AI tools available to advertisers could be seen as a threat to designers, videographers, and other creative professionals, embracing these technologies and leveraging them to accelerate the creative process will help creatives produce high quality work at a faster pace. Our opinion? The best ideas will still come from humans who will now be able to leverage generative AI to bring their ideas to life more efficiently.
