AI Insights in October and November

Last week was a busy week with good and bad news for AI. We have heard about Sam Altman’s departure from Generative AI with a limited peak inside the OpenAI’s management and arguments. Following weeks will be as interesting to follow whether Sam Altman will be back and Microsoft’s position on this fight.

With or without Sam Altman AI has been evolving for decades, reshaping industries and our daily lives. In the latest developments from the AI landscape this week, we've witnessed significant strides in AI-powered tools, heated debates on ethics, and transformative announcements that should not be missed.

News on Adobe's AI Integration Journey:

This week Adobe announced its commitment to integrating AI across its suite of products. This strategic move mirrors a broader trend among tech companies harnessing AI to elevate user experiences and streamline workflows. Adobe's focus areas include content generation, image editing, and design automation.

News on Big Tech's Profitability Challenge in AI:

Despite AI's transformative potential, major tech companies are grappling with the challenge of turning AI into a profitable venture. High costs associated with training and deploying AI models, coupled with fierce competition, are compelling these companies to demonstrate the financial viability of their AI investments.

Training and running large AI models require significant computational resources, which can be expensive to maintain. For instance, Google Cloud reportedly spends around $600,000 per day on training its TPUv4 AI chips. This high computational overhead can strain profit margins for AI-powered products and services.

Developing and refining AI models is an iterative and resource-intensive process that involves hiring skilled AI researchers, acquiring large datasets, and conducting extensive testing. These costs can be substantial, especially for complex models like GPT-3 and DALL-E 2.

Determining the appropriate pricing for AI products and services is a delicate balance between recouping development costs and attracting customers. Charging too much may deter adoption, while pricing too low may not cover operational expenses. For instance, AI-powered chatbots may struggle to generate direct revenue, while AI-powered image generation tools may face challenges in capturing a significant portion of the market.

The AI landscape is highly competitive, with numerous companies vying for market share. This fierce competition can lead to price wars and reduced profit margins.

The long-term demand for certain AI products and services remains uncertain. For instance, the popularity of AI-powered social media filters may fluctuate over time, making it difficult to forecast future revenue streams.

News on AI Audio Takes Over TikTok:

AI-generated audio is making waves on TikTok, with deepfake audio gaining prominence. These AI-powered creations raise concerns about authenticity and potential misuse, sparking discussions on the ethical implications of AI-generated content.

News on US-China AI Rivalry Escalates:

The ongoing geopolitical tensions between the United States and China have extended to the realm of AI. The US government has expressed concerns about China's AI development, particularly in surveillance and military applications. This highlights the urgent need for international cooperation in regulating AI development and ensuring responsible use.

News on Cruise's Self-Driving License Revoked

The California Department of Motor Vehicles (DMV) has revoked Cruise's self-driving license, a subsidiary of General Motors. This decision follows Cruise's failure to report a crash involving its autonomous vehicles, raising questions about transparency and accountability in the self-driving car industry. After this news Cruise suspended its driverless operations in Austin, Texas on October 27, 2023.

News on Jina v2 Outperforms OpenAI:

Jina AI, an open-source platform, released Jina v2, its latest embedding model, which has surpassed OpenAI's CLIP model on various benchmarks. This underlines the growing capabilities of open-source AI solutions.

White House Sets New AI Rules for Federal Agencies:

On October 31, 2023, the Biden administration released an executive order titled "Safe, Secure, and Trustworthy Artificial Intelligence" (AI). This executive order outlines a set of principles and guidelines for the responsible development and use of AI by federal agencies, mandating responsible AI practices. These guidelines emphasize fairness, equity, and transparency in AI use while addressing potential risks and biases.

The key principles of the executive order are:

1.AI should be used to advance equity and civil rights.

2.AI should be safe and secure.

3.AI should be transparent and accountable.

4.AI should be developed and used in a way that is consistent with American values.

The executive order is a significant step forward in the effort to ensure that AI is developed and used in a responsible way. The guidelines will help to ensure that federal agencies are using AI in a way that is fair, equitable, and transparent. They will also help to mitigate the potential risks and biases of AI. Moreover, this news also suggests that Federal Government will open up new positions and welcome new collaborations with companies. Combining this news and recent technology rivalry between US and China federal government might start hiring AI and technology experts to build a strong backbone to be competitive with China and other countries.

I know that it is impossible to follow all the AI news as there is at least ten AI news everyday in the news and last couple of weeks were busy with AI news. As I always remind AI landscape continues its dynamic evolution, it is critical to address the ethical and societal implications of this powerful technology. Through open dialogue, collaboration, and responsible development practices, we can ensure that AI benefits humanity as a whole. Let’s take sometime to share the thoughts and wishes as the big AI year of 2023 approaches to the end.