2024: From Potential to Profit with GenAI

Dear tech friends,

Happy New Tech Year to all of you and welcome to the first 2024 edition of?BCG X Files, our monthly tech-focused BCG X LinkedIn newsletter.

I'm convinced that this will be a happy year for GenAI, filled with massive growth and historic breakthroughs.

In 2023, generative AI made its grand debut, shaking things up and changing the game across industries and businesses. Many organizations experimented with this revolutionary technology but struggled to fully harness its value on a large scale. In anticipation of Davos 2024, we published our 'From Potential to Profit with GenAI' report, where we surveyed 1,400+ C-suite executives across 50 countries and 14 industries. 90% of leaders turned out to be passive observers of AI rather than pioneers who are developing impactful GenAI programs. Only 6% of companies have trained more than 25% of their workers on GenAI tools.

Now, it's time for scaling and upskilling, and leaders are kicking off this year with GenAI at the forefront of their agendas. The emergence of multimodal models, the rise of autonomous agents—GenAI is evolving rapidly with new surprising capabilities. For those who missed the first wave of AI, this is your second chance. The stage is set for companies to evolve from mere observers into the ultimate winners!

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Enjoy!

-Sylvain Duranton, Global Leader of BCG X

ChatGPT Helps, and Worries, Business Consultants, Study Finds | NY Times - 4 min read

The NY Times article discusses the impact of an experiment conducted by the BCG Henderson Institute and Fran?ois Candelon in partnership with Harvard Business School, MIT Sloan School of Management, The Wharton School, and the University of Warwick - Warwick Business School. Involving over 750 consultants to assess ChatGPT's influence, the study sheds light on the potential effects of language bots like ChatGPT, Meta's Llama, and Google's Gemini on office tasks.

The New York Times is Suing OpenAI and Microsoft for Copyright Infringement | The Verge - 2 min read

The New York Times is suing OpenAI and Microsoft for copyright infringement, alleging that they used millions of the newspaper's articles to train their AI models, which now compete with its content. OpenAI responded, calling the lawsuit baseless and expressing a desire for a partnership with The NY Times, despite the legal action.

Signs and Portents | One Useful Thing - 12 min read

In the second year of the AI Moment, predicting the future of AI is tricky due to its rapid progress. Recent research shows estimates shifting from 2060 to 2047 for AI surpassing humans, with a 10% chance by 2027. To gain insight into AI's future, Ethan Mollick, a professor at the Wharton School of the University of Pennsylvania, explores current trends and what lies ahead.

These Six Questions will Dictate the Future of Generative AI | MIT Technology Review - 9 min read

MIT Tech Review's AI correspondent, William Douglas Heaven, poses six critical questions about GenAI's future, including concerns about bias, copyright, job disruption, misinformation, hidden labor costs, and policy approaches. These issues are significant hurdles to realizing GenAI's full potential.

The Future of Digital Health 2024 | BCG - 5 min read

BCG and BCG X experts foresee a technology-driven year ahead, with advancements in at-home care, women's health, and mental well-being. This transformation includes wearables, virtual hospitals, and remote diagnostics empowering doctors, with GenAI reshaping drug development, billing, and cost management across the industry.

10 Breakthroughs Technologies 2024 | MIT Technology Review - 2 min read

Every year, the MIT Technology Review publishes its list of 10 breakthrough technologies to keep a close eye on for the year ahead that will have a real impact on the world.

Charting the Emerging Geography of AI | Harvard Business Review - 15 min read

The AI boom is changing the landscape of innovation and growth. This HBR article analyzes AI leadership in 25 countries using data, rules, capital, and innovation as key factors. The US and China are currently at the forefront, but countries like India, the UK, and Indonesia are catching up with growing data and talent.

The Real Research Behind the Wild Rumors about OpenAI’s Q* Project | Ars Technica - 15 min read

OpenAI's Q* breakthrough in math problem solving has limited information available. This article explores recent research on step-by-step mathematical reasoning, suggesting that approaches like chain-of-thought and tree-of-thought could offer advantages for complex problems over single chains of reasoning.

How Will AI Change the Way We Learn? | BCG - 2 min read

Generative AI tools have the potential to revolutionize education, but there exists a significant gap in the public's understanding of AI's impact. It is our responsibility to make AI accessible and ensure responsible model development, as educating future talent in both humanities and programming fosters well-rounded citizens for tomorrow.

E.U. Agrees on Landmark Artificial Intelligence Rules | NY Times - 6 min read

The European Union has agreed on landmark legislation called the AI Act to comprehensively regulate artificial intelligence. The new law aims to harness the benefits of AI while also protecting people by restricting its highest-risk uses and imposing transparency requirements on large AI systems.

We Don’t Have to Choose Between Ethical AI and Innovative AI | TIME - 5 min read

AI can reduce inequality by improving access to services like education and healthcare. However, it may also worsen biases and inequities if not developed with community input. PaidLeave.ai uses AI to simplify paperwork, making it easier for parents to access paid leave benefits.

Big Tech has Long Avoided Responsibility for Online Content. Generative AI Could End That. | Business Insider - 6 min read

Generative AI could end Big Tech's long-held legal protection from liability for user-generated content on their platforms, as these tools will directly create content without human involvement. As the major tech companies like Meta and Google become creators of AI-generated outputs, they may lose the shield of Section 230 and face more legal responsibility for any harmful content.

AI Could Accelerate Progress Toward the World’s Climate Goals. Here’s How | Fortune - 3 min read

To meet the Paris Agreement, global emissions must decrease by 2030, yet they are expected to rise by 10% in the next eight years. AI can cut emissions by 5-10% by 2030. BCG's Rich Lesser and Google's Kate Brandt outline key steps for policymakers to drive AI innovation and clean energy. Examples from Germany, Singapore, Lisbon, and the Philippines highlight AI's potential.

The Road Ahead Reaches a Turning Point in 2024 | Gates Notes - 22 min read

In his annual letter, Bill Gates predicts AI will boost innovation, expects widespread US adoption in 18-24 months and African adoption in 3 years, aiming to bridge digital gaps. Gates Foundation uses AI for maternal health and high-risk pregnancy care via tailored tools, and seeks AI solutions for antibiotic resistance.

10 Climate Tech Innovations That Give us Hope for 2024 | Fast Company - 5 min read

Fast Company outlines 10 promising climate tech innovations that could help reduce emissions and mitigate climate change over the next year, including large-scale geothermal heating, CO2-based jet fuel production, induction stoves replacing gas stoves, and direct air capture facilities removing carbon from the atmosphere.

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