According to Amazon CEO Andy Jassy, businesses everywhere may find themselves in a unique dilemma in 2024: their primary issues and potential fixes may be the same.
You can’t have a conversation without talking about generative AI, a radically disruptive technology, which is why there is a similar amount of risk and opportunity, according to Jassy.
During a meeting in Davos, Switzerland, on Thursday, Jassy revealed to Fortune CEO Alan Murray that, before the pandemic, most businesses were updating their outdated systems in order to innovate and cut costs. However, the epidemic forced them to consider cutting costs by any way possible, and as generative AI became widely accepted a few years later, they were able to dream of cost savings on a completely new scale. It appears that they are currently at a loss as to how to move forward.
According to Jassy, he simply observes businesses struggling with the decision of whether to invest all of their new technical resources in generative AI or to keep modernizing their technological platforms.
But, he continues, it’s not as easy as selecting one choice. Companies will find it difficult to succeed in AI if they do not have an efficient technological infrastructure in place.
Modernizing your technology and moving to the cloud is such a sure thing. That seems like a very foreseeable payback to him, Jassy remarks. However, it would be foolish to fail to learn how to effectively use generative AI.
As Jassy puts it, there will eventually need to be a balance, with each business putting its own needs first. He believes that most businesses would likely choose the safer course of updating their technology and then funding one or two AI projects that improve customer experience and teach them how to use AI successfully.
Businesses all throughout the world are focusing nearly exclusively on artificial intelligence (AI) since OpenAI released its ChatGPT large language model chatbot to the public in November 2022. The excitement surrounding technology has driven tech giants like Google to quickly introduce their own chatbots.
Although Amazon has been working on AI for years, the company just announced that Q, their business chatbot, will launch in November 2023. The chatbot, which was developed based on 17 years of experience with Amazon Web Services, is designed to assist staff members with tasks and communications, blog post creation, content summarization, code development, and analysis.
Moreover, Anthropic, a San Francisco-based AI business started by former OpenAI employees, has received a $4 billion investment from Amazon. In March 2023, Anthropic made its gen AI chatbot, Claude, available to the public.
Although it’s still “early days” in the AI revolution, Jassy told on thursday that Amazon is presently developing over 60 different AI applications.
He added, “This is like three steps into a marathon.”
