Insider's Edit: Generative AI Already Improving Productivity
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Here are this week's top stories on AI Business:
Generative AI to Boost Productivity, Skill Creation, Report
Generative AI holds the potential to accelerate economic growth but could also bring about a marked transformation in job skills, according to a new report.
The Generally Faster: The Economic Impact of Generative AI report by Andrew McAfee, an MIT principal research scientist, was supported by Google researchers during his tenure as Google’s inaugural visiting fellow in technology and society.
In the report, McAfee designated generative AI as a "general-purpose technology”— in that it’s a technology that accelerates overall economic growth, on par with the likes of the steam engine or electricity.
Despite being early in its life cycle, generative AI is already providing users with sizable productivity gains the report suggests. The technology will “increase and spread as people and organizations come up with complementary innovations that leverage generative AI’s capabilities.”
Generative AI could scale faster than other general-purpose technologies as the existing digital infrastructure is already in place, the report claims.
“Once new generative AI systems are developed they can be deployed around the world as quickly as web pages and apps can,” McAfee wrote. “A large and growing number of powerful applications using this technology are immediately available at no cost to anyone with an internet-connected device.”
Biden Administration Launches International Cybersecurity Strategy
The State Department has launched a new strategy designed to foster solidarity with international allies on cybersecurity and emerging technologies.
The U.S. International Cyberspace and Digital Strategy details the Biden administration’s framework for encouraging partners to more securely deploy technologies including AI and quantum computing.
Developed in tandem with other federal agencies, the strategy has three guiding principles:
The strategy mandates that the Biden administration will collaborate with allies to establish an open and secure digital ecosystem and forge coalitions to thwart technological threats aimed at critical infrastructure.
The State Department is tasked with spearheading the strategy’s principles, working with global partners to foster collaboration.
Apple CEO Optimistic About Future Generative AI Investments
Despite experiencing a decline in revenue and iPhone sales during a rocky second quarter, Apple's emerging generative AI efforts could provide a much-needed boost.
During its May 2 earnings call, Apple reported quarterly revenue of $90.8 billion, a 4% decrease from last year. iPhone revenue was also down by 10% to $46 billion.
While Apple is yet to launch a generative AI solution like rival tech firms, the emerging technology looks set to have a sizable impact on the company.
During the earnings call, Tim Cook, Apple’s CEO, said the company will be making “significant investments” in generative AI in the next quarter and that the company “continue[s] to feel very bullish about our opportunity in generative AI.”
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Cook said that Apple has advantages to differentiate it from other tech firms building AI solutions, including its “unique combination of seamless hardware, software and services integration, groundbreaking Apple Silicon with industry-leading neural engines and unwavering focus on privacy.”
CEO Cook described Apple’s upcoming annual WWDC event, where the company traditionally reveals new products, as “incredible.”
Apple has already unveiled the M4 high-performance chip for its latest iPad lineup, touting that its new tablets can outpace any AI PC currently available.
Firms Not Prepared to Deploy AI Models, Report
A new Hewlett Packard Enterprise (HPE) report reveals that businesses eager to implement AI are struggling with the necessary processes required to deploy models effectively.
The report, titled Architect an AI Advantage surveyed more than 2,400 IT leaders from 14 countries. Respondents worked at organizations with more than 500 staff and spanned industries including health care, manufacturing and financial services.
HPE found that businesses looking to implement AI are struggling to perform basic processes vital for preparing data for use in AI models.
Findings showed that just 7% of the 2,400 IT professionals surveyed can currently run real-time data synchronization, while only 26% can run advanced analytics applications.
Less than 60% of respondents reported that their business is currently capable of handling functions like accessing, storing and recovering data, which could slow down a model’s development process.
“There’s no doubt AI adoption is picking up pace, with nearly all IT leaders planning to increase their AI spend over the next 12 months,” said Sylvia Hooks, vice president of HPE Aruba Networking. “These findings clearly demonstrate the appetite for AI, but they also highlight very real blind spots that could see progress stagnate if a more holistic approach is not followed.”
Microsoft Invests $2.2B to Bring AI, Cloud Technologies to Malaysia
Microsoft’s ongoing AI spending spree continues as the company announced plans to invest $2.2 billion in Malaysia over the next four years to bring AI and cloud infrastructure to the Southeast Asian country.
Microsoft says its expansion will enable the company to meet the increasing demand for local cloud computing and AI services. Citing figures from Kearney, the company highlighted that Malaysia is expected to contribute $115 billion to Southeast Asia's total projected GDP growth of $1 trillion by 2030, a growth driven by advancements in AI.
Microsoft also pledged to support skill developing initiatives for 200,000 Malaysians, part of its wider pledge to enhance the skills of 2.5 million Southeast Asians by 2025.
The company will also work with the Government of Malaysia, establishing a national center of excellence for AI. Additionally, Microsoft will work with local authorities to improve the country’s cybersecurity landscape.
“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” said Satya Nadella, Microsoft’s chair and CEO. “Our investments in digital infrastructure and skilling will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
The announcements were made during the latest edition of Microsoft’s Build event in Kuala Lumpur. Another earlier version of the event took place in Indonesia last week, which saw Microsoft make a similar investment pledge to support local AI efforts.
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