Summer of Artificial Intelligence: Takeaways from our first event

2023 has been the year of artificial intelligence (AI), with mentions of “ChatGPT” skyrocketing in Google searches, earnings announcements, and dinner table conversations. But with extraordinary hype comes an equally significant number of questions: Is the excitement justified? What is the true extent of what this technology can actually do? And what are the risks that come along with it?

To answer these questions and more, last month we launched our Summer of Artificial Intelligence webinar series. The first of four episodes covered the origins of AI, featuring Dr. Jules White, Associate Dean for Strategic Learning Programs and Associate Professor of Computer Science at Vanderbilt University. Dr. White is a renowned expert in the field, with award-winning research on areas including large language models, like ChatGPT and more. Below I recap some of my key takeaways from a?truly fascinating conversation :

Takeaway 1: ChatGPT could actually be…underhyped

With so much buzz around AI already this year, Dr. White’s answer to the question “Is ChatGPT overhyped?” was especially noteworthy: Actually…it’s still underhyped. As he mentioned, he believes we're unlikely to see anything else so transformative in our lifetimes, and it’s like we all woke up one morning and had access to the iPhone of 40 years in the future.

I loved an example he gave of how he has personally used the technology. As part of his grocery shopping, he asked ChatGPT to create a meal plan that combines food from Uzbekistan and Ethiopia, but is also keto and within 2,000 calories. But it didn’t stop there. It then created a game that would get his son excited to try the food…based on Pokeman battle stories. And as a final step, introduced a nutrition-themed math game, which was promptly turned into code so it could be played on his iPad.

To me, this illustrated how powerful this tool really is in a relatable way—any parent has spent countless hours meal planning, getting their children to try new foods, helping with their education. It’s clear that ChatGPT can assist with complex everyday problems that would take the ordinary person days, if not months or even years, to complete. It is far beyond the glorified search engine that some consider it.

Takeaway 2: Industries should accept AI, not fight it

While AI presents an immense opportunity, much debate has also centered around the risks and the threat to jobs or entire industries. But I enjoyed hearing Dr. White’s explanation of how this technology is likely to impact the industry he lives in every day: education.

He doesn’t think we should be banning ChatGPT in schools in response to concerns that it will do all of our students' work for them. Instead, educators will need to reshape their curriculums so that students can leverage these applications, just as they will need to do after they graduate. At the same time, AI can also make teachers more productive. For instance, while all students won’t have access to personal tutors, ChatGPT can help create exercises targeted toward individual children at scale. And Dr. White has already taken advantage of the ways it can bring a curriculum to life in new and creative ways: In his cybersecurity class, he asked ChatGPT to simulate being a computer that had been the victim of a cyberattack—an exercise that would have previously taken months of coding and a larger budget.

This example aligns with our?long-standing view in CIO ?around the impact of AI on the labor force. History has shown time and time again that innovation has not deemed humans obsolete; in fact, it has increased productivity and led to job creation. While some industries will certainly face challenges from AI, we see this playing out similarly to past cycles. Governments and companies that use AI to make productive workers even more productive will have a competitive advantage.

Takeaway 3: The biggest risk still lies with humans, not a robot takeover

Beyond the threat to labor and industries, those with a flair for the dramatic have even proclaimed AI a threat to humanity itself—as robots get smarter and smarter and can even program themselves. But Dr. White was quick to dismiss concerns that a robot takeover is imminent.

Instead, he reminded our audience of the real risk of programs like ChatGPT: human misuse. He believes the largest challenge is that people use the tool inappropriately in a way that results in harmful effects, for example, when making legal decisions, within some areas of education, or when making certain financial decisions. Continued education will be critical in mitigating risks and unlocking the full potential of AI in the years to come.

Bottom line

Dr. White’s conversation reinforced our views that AI represents a truly transformative technology that will impact all industries, geographies, and people. And it’s clear that the true power of applications like ChatGPT may not yet be widely appreciated.

Of course, as investors, we do have to weigh the near-term hype from the long-term opportunity, which has become even more difficult after the sharp AI-fueled rally this year. With this in mind, in?the second event ?of our Summer of Artificial Intelligence series, we will turn our attention to the investment implications. Join us on Thursday 13 July at 1 p.m. ET for a discussion on the near- and long-term investment opportunities, risks, and more, with?Kevin Dennean, CIO Technology Sector Strategist; Jeremie Capron, Partner and Director of Research, ROBO Global; and Jay Jacobs, Managing Director, US Head of Thematics and Active Equity ETFs, BlackRock.

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