NOTEWORTHY NEWS #26: OUR TAKE ON THE LATEST AI/GENAI NEWS
By Jeremy Lockhorn , SVP, Creative Technologies & Innovation, 4A's
THE BIG STORY: Is AI hitting a wall?
Recent headlines have speculated about an "AI slowdown," with both OpenAI and Google confronting diminishing returns from traditional scaling laws—the notion that more data and compute automatically yield better AI models. OpenAI's upcoming "Orion" model reportedly brings only moderate gains over GPT-4, and Google's Gemini has similarly struggled. Yet, OpenAI CEO Sam Altman’s bold declaration on X that "there is no wall" pushes back against the narrative. So, what’s really happening?
The truth is nuanced. Traditional scaling techniques, like feeding models ever-larger datasets or deploying more GPUs, may well be reaching their limits. Challenges include the scarcity of high-quality training data, spiraling compute costs (e.g., OpenAI’s $100B data center proposal), and physical infrastructure constraints. However, AI developers are pivoting, focusing on innovation beyond brute-force scaling:
Additionally, the rise of AI "agents" like OpenAI’s planned "Operator ," Google’s rumored “Jarvis ,” and Anthropic’s “computer use ” - all of which can automate complex workflows - signal a shift in focus.?
For agencies hoping for a break from the relentless pace of AI change, this may not be the slowdown you are looking for. AI's trajectory may not be slowing as much as it is recalibrating. Expect tools that may be less about "more power" and more about "smarter power," demanding updated strategies for leveraging these advancements.
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