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In the realm of artificial intelligence, a groundbreaking innovation has emerged, offering unparalleled potential for creativity, problem-solving, and efficiency: Generative AI – Many of us know this and are already using it!
However, are you ready for it at an organisational level and be aware of all the considerations before embarking on that highly visible project the CEO has approved funding for.
As organisations navigate an increasingly complex digital landscape, the decision to embrace generative AI technologies has become not just advantageous but essential for staying ahead in today’s competitive market.
Why choose Generative AI over other forms of AI (some of which are now called Legacy-AI), and what benefits does it bring? In this blog, I will take you through the Pros, Cons, and Considerations needed for the successful implementation of Generative AI and the benefits it holds the key to in unlocking a new era of innovation and growth while understanding if you are ready and are you ready, right now.
“Gen AI” typically refers to the generation of artificial intelligence systems that are capable of autonomous learning, adaptation, and problem-solving. These systems can provide multiple benefits to businesses across various industries.
A lot of money is being spent, with Global AI spending this year to be $236bn. Increasing to $521bn by 2027. This includes hardware, software, and everything else. Source: International Data Corporation
When evaluating readiness for Gen AI adoption and comprehending the ramifications along with broader essentials to enhance the likelihood of success in Gen AI endeavours, it is pertinent to consider the following perspectives. Commencing with the advantages or merits of embarking on a Gen AI trajectory.
Pros:
Automation
Gen AI presents numerous advantages for businesses. It streamlines operations, reduces costs, and allows personnel to focus on more complex endeavours. Think of all those little tasks that we do almost automatically without too much thought or that could be taught to others using a checklist or decision tree. Well, why not build in intelligent automation or as most of us know it, Gen AI or Generative AI (used interchangeably in this blog with AI).
These systems excel in decision-making by rapidly analysing vast amounts of data quickly and accurately, providing businesses with insights to make better decisions. This could include identifying market trends, optimising supply chains, predicting customer behaviour, or enhancing strategic planning.
Evaluate the potential return on investment (ROI) and business value of Gen AI initiatives
Personalisation
Personalisation becomes achievable through AI’s ability to analyse customer behaviour, leading to tailored experiences that bolster satisfaction and loyalty. Moreover, AI fosters innovation by identifying opportunities, optimising operations, and facilitating the development of new products and services.
During London Fashion Week this year (mid-Feb) some outfits generated by AI were featured. Initially when the students were shown these designs “I know how to design a dress” was the response. However, when they started to review the prototypes that hadn’t gone so well. It started to spark a sense of imagination in them. With responses of “Imagine if we combine ideas from different images to make something new.” Using AI has helped with ideation.
Additionally, AI was used to generate an idea and visualise it very quickly. When generating ideas & mood boards at the beginning of the design process, it is very valuable.
It also reduces wastage in the process, as the visualisation is available before manufacturing. In an industry with a value to the economy of £20bn, any reduction in wastage has got to be a benefit to us all.
Other areas are Businesses can mitigate risks more effectively, and enhance customer service with 24/7 support through chatbots – I’m yet to be convinced about this one. If my issue is complex enough to need me to call. A chat bot is not going to be able to solve it, let alone understand my issue, I have discovered.
“In Europe we have to be careful we are not over regulating”- Christian Klein, CEO SAP
Increased Productivity
AI could boost workers’ productivity and incomes. Across diverse domains like art, music, text, and more. From crafting digital art to composing AI-generated music, and fashion (as above), the versatility of generative models showcases the versatility that awaits. Other potential productivity gains could come from:
- Increased Efficiency: Automation powered by Gen AI can streamline processes, reducing the need for manual intervention and saving time and resources. Tasks such as data entry, customer service inquiries, and repetitive manufacturing processes can be automated, allowing employees to focus on more complex and value-added activities.
- Cost Reduction: By automating tasks and improving efficiency, Gen AI can help businesses reduce operational costs. Additionally, predictive maintenance powered by AI can minimise downtime and extend the lifespan of equipment, saving on maintenance and repair expenses.
Invest in data management processes and infrastructure to ensure that data is clean, reliable, and readily accessible
- Risk Mitigation: AI-powered analytics can help businesses identify and mitigate risks more effectively. For example, AI can detect anomalies in financial transactions to prevent fraud, analyse cybersecurity threats in real-time, or forecast potential disruptions in supply chains.
- Scalability: Gen AI solutions can scale according to business needs, handling increasing volumes of data and transactions without significant manual intervention. This scalability enables businesses to adapt to growth or fluctuations in demand more effectively.
Creativity and Innovation
Generative AI has the potential to ignite creativity and innovation by producing novel, diverse outputs which challenge existing ways of doing things or new approaches to combining new or existing ingredients, medicines, vaccines, and even perfumes. Maybe your favourite scent has not yet been formulated.
Overall, Gen AI offers businesses opportunities to drive innovation, improve efficiency, and enhance competitiveness in an increasingly digital and data-driven marketplace. However, businesses must implement AI technologies responsibly, considering ethical implications and ensuring transparency and accountability in AI-driven decision-making processes. With that in mind let’s investigate the Cons.
Invest in data management processes and infrastructure to ensure that data is clean, reliable, and readily accessible
Cons
Despite its numerous advantages, Gen AI presents several challenges and potential downsides for businesses. These include high initial costs of implementation, concerns about data privacy and security, potential job displacement due to automation, and the risk of bias and fairness issues in decision-making processes. Additionally, businesses must navigate regulatory compliance requirements, address the loss of human touch in customer interactions, and grapple with complex ethical and societal implications. Finding a balance between automation and human involvement, ensuring fairness and transparency in AI driven systems, and considering broader social and ethical implications are crucial for businesses to successfully leverage Gen AI while mitigating its associated risks.
Cost of launching a single AI product is: $6k – $300k source: European Commission
This cost includes everything from designing to having a lawyer ensure it is within the new laws.
One challenge remains. Ironing out of the global consistency of regulation is still to be achieved to ensure solutions can work across borders.
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Data Queen, Data Intelligence 