Goodbye Summer, Welcome Fall: AI Highlights

It's been an incredible?AI growth year and there is so much more to come. Here are recent highlights of the AI sector growth and recent SalesChoice Inc. AI research on why AI programs are not scaling successfully, as less than 5% do. I think it's time for tighter operating practices with more skilled experts. This aside, growth continues to surge forward, as well as new laws, like the California AI Safety Bill 1047 under final approvals will ensure more AI safety in large AI models

Nvidia reports 122% revenue growth due to high data center chip demands fueling AI growth requirements.?Nvidia turned in revenue of $30Bllion, up 122% from the year-ago quarter and 15% from the first quarter of the year. Nvidia also dropped earnings per share of $0.67, up 12% from the sequentially preceding quarter and 168% from its year-ago result. The big story across its segments is its surging data center business which dropped $26.3 billion in total revenue, up 154% on a year-over-year basis. What a blast they are having.

OpenAI in talks for a big funding round?according to the Wall Street Journal. OpenAI is reportedly in another major capital raise led by Thrive Capital, this time at a valuation of more than $100 billion. That’s roughly $14 billion more than the price at which some of its existing shareholders were allowed to cash out a portion of their equity last year.?What a return for those early shareholders.

A New California AI Safety Bill 1047 is making big controversial waves. This new bill would put more responsibility on any developer spending more than $100 million to build an AI model. The requirements include safety testing, implementing safeguards, and allowing the state attorney general to take action against the developer of any AI model that causes “severe harm,” such as mass casualties or incidents causing $500 million or more in damages. Companies must also agree to third-party audits and implement a kill switch that can turn off the technology at any time. The bill also proposes protections for whistleblowers. The proposed legislation aligns very closely to the new EU AI Act reinforcing the importance of advancing responsible AI legislation. Not everyone agrees. OpenAI sent a letter to California State Senator Scott Wiener’s office with concerns that the bill has broad and significant implications to US competitiveness and national security. The company argued that the bill will prompt AI talent to seek greater opportunities elsewhere and threaten California’s position as a global AI leader.? The bill from my perspective puts out common sense safety standards for large AI models that are important to manage reasonable care and shut down mechanisms for major fail points. Without some AI guardrails for leaders to follow we risk recognizing the serious risks AI is already posing to both society and also national security.

Scaling AI Initiatives Continue to have Sustainability Challenges. Less than 5% of AI projects actually reach any sort of significant scale. SalesChoice research has found there are five key reasons.

1. Selecting the Right AI use case that has value is not carefully thought through
2. Lack of operational maturity in being ready to tackle an AI program with the right mix of skills required
3. Underestimating the sustaining operating costs and human continuity to support an AI solution
4. Lack of skills in machine learning ops(MLops) (AI model infrastructure/cloud, data lineage, model versioning controls, model measurement systems, etc.). and change management alignment (culture/skills mix, communication, job process realignment expertise, training, measurement systems, etc.).

To learn more about how to do AI programs the right way, check out SalesChoice’s AI service offerings and also our new programs on advancing trusted AI and ensuring Data bias is minimized.

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