We have seen significant changes in how the public views AI over the past year, as well as spectacular advancements in the field. Chatbots, like as OpenAI’s ChatGPT, and LLMs, such as GPT-4, have shown extraordinary proficiency in communication and near-peak performance on a variety of cognitive tests. The market capitalizations of businesses that are crucial to the AI ecosystem (like Nvidia) have increased. There is a lot of talk about an AI arms race between large tech companies like Google and Microsoft.
Despite all the excitement surrounding AI, there hasn’t been a lack of anxiety, ranging from worries about the loss of jobs, the spread of misinformation, and AI-powered cyberattacks to worries about existential risk. Even while responsible testing and application of AI are vital, it’s unlikely that there will be significant legislative changes over the next year (which will widen the gap between the field’s leaders and followers). While competitors who lag behind in technology or businesses that offer goods and services that are threatened by AI run the danger of losing a significant amount of value, large, data-rich AI leaders are likely to reap enormous rewards.
In the AI competition, there will be winners and losers, but AI sceptics are underestimating the creativity and productivity that the technology will unleash. Indeed, job losses are unavoidable, but job gains are also. The most prosperous businesses will embrace change rather than resist it, figuring out how to participate in one of the biggest technological revolutions in history.
Innovation will counteract dislocation
Data entry clerks, content writers, paralegals, customer service representatives, and millions of other professionals may find that their careers are going to take an unexpected turn as a result of AI replacing many current professions. Accenture estimates that LLMs alone will effect 40% of all working hours since “language tasks account for 62% of the total time employees work.” According to the World Economic Forum’s 2023 Future of Jobs Report, by 2027, machines would perform 43% more activities than humans.
Despite this, it’s always a good idea to back people’s ingenuity and toughness. There will be a rise in the demand for information security analysts, quick engineers, auditors and ethicists of AI, and other professionals as some positions become obsolete. There will also be a huge increase in demand for educational materials with an AI focus. According to PwC, an impressive 74% of workers say they are “ready to learn a new skill or completely retrain to keep themselves employable” – a hopeful sign that workers understand how important it is to adapt to new technology and economic realities. Maybe this is why 73% of American workers think technology will help them find better employment opportunities.
Employers could capitalize on these feelings by emphasizing professional development and talent mobility, which will both get their workforces ready for the AI future and boost retention in a frustratingly tight labor market. In addition to internal training, third-party educational services with an emphasis on AI, data science, cybersecurity, and many other cutting-edge topics are starting to appear. This trend is expected to gain steam in the upcoming years. Despite all the negative news regarding the loss of jobs due to AI, it’s crucial to keep in mind how adaptive people can be.
Managing AI risk will be a core priority
In addition to the economic shocks that AI will bring about, there are a number of other risks that businesses and consumers will need to be aware of in the coming years. Cyberattacks fueled by AI, issues with bias and transparency, copyright infringement, and the mass manufacturing of false information are all threats that need to be addressed immediately. The deployment and adoption of AI in the upcoming years will be greatly impacted by how we manage these risks.
Consider how AI might be used in cyberattacks. Nearly three-quarters of data breaches, according to Verizon’s 2023 Data Breach Investigations Report, contain a human component, which is why thieves frequently use social engineering assaults like phishing. LLMs can instantly produce an infinite amount of cogent and persuasive language, which might provide hackers with a potent tool to scale up phishing attempts (phishing attacks rely on tricking victims into clicking on dangerous information using convincing writing). Russian fraudsters have already tried to get beyond OpenAI’s restrictions, according to Check Point Research.
Businesses will raise their cybersecurity spending to keep up with these innovations, and large AI-enabled hacks are likely to occur soon. To take into consideration the threat posed by AI, approaches to cybersecurity training will need to be updated. For example, phishing efforts will be more difficult to detect since fraudsters will employ LLMs to create believable (and less error-filled) text. Companies who are thinking about the risks now and changing their compliance standards, HR policies, and cybersecurity platforms to account for the hazards of AI while utilizing its benefits will be in the greatest position to win during the AI revolution.
AI will fundamentally transform the business environment
In just two months, ChatGPT skyrocketed to 100 million monthly active users, making it the fastest-growing consumer application ever. Large IT corporations that have access to vast amounts of data and top researchers in the field will have huge first-mover advantages, but numerous startups will soon create creative applications for AI. The effects of AI on the economy will go well beyond the progress of the technology itself.
For instance, the combination of AI and robotics, as well as new partnerships between mechanical, electrical, and software experts, will significantly reduce the cycle times, error rates, and costs associated with innovation. AI-driven disruption will fast gain speed over the coming year as workforces change, market share and values drastically fluctuate, and delayed AI adopters quickly lose ground. There will also be a lot of false starts; while some businesses will produce astounding returns, others will succumb to misguided hype and meet with failure. The most profitable firms will figure out how to take advantage of network effects related to data collection and alliances with early adopters.
It’s tough to predict exactly how the corporate landscape will look as AI develops and spreads quickly. However, one thing is certain: Forward-thinking businesses are wise to concentrate on AI at this time; they just need to be aware of the risks as well as the possible rewards.
