America’s public companies are embracing artificial intelligence fever. Over 1,000 companies mentioned the technology in their quarterly reports this summer, up from just 36 a decade ago. This surge is not just numbers on paper but a revolution underway, akin to the advent of electricity or the internet.
And it’s not just public companies that are a buzz with interest in generative AI. From powerhouse tech giants to small and medium enterprises, the allure of AI is undeniable, and its applications are permeating industries far and wide.
Just this week, I worked with a funeral home association and a municipal utilities association, with members enthralled with the potential of generative AI for their respective businesses and organizations.
But what’s genuinely capturing the attention of executives and investors alike is a particular subset of AI: generative AI. Let’s delve into this technological marvel reshaping how businesses operate and innovate.
The Rise of Generative AI
Generative AI, which includes tools like ChatGPT and Dall-E image generator, can create text or images based on given prompts. From powering Ulta Beauty’s “virtual try-on and skin analysis tools” to aiding Alaska Air in enabling “more fuel-efficient flight paths,” the applications are as diverse as they are transformative.
Nvidia, a chip company, witnessed better-than-expected earnings thanks to the AI boom, sending its shares skyward. Even the medical industry is benefiting, with AI algorithms by Hologic helping identify precancerous lesions and cervical cancer cells in women.
A Buzzword or a Breakthrough?
Not all are in agreement on the direction and speed of this wave. While the stock market has rallied, driven by AI-centric companies like Microsoft and Nvidia, there are signs that the boom might be slowing down. Some analysts warn that building a profitable AI start-up is complicated and expensive. That may be true, but from my perspective, the application of AI is not slowing down but rather advancing rapidly as we mere mortals get a taste of the power behind the applications.
There’s also concern over the broad application of the term “AI.” Joseph Fuller, a Harvard Business School professor, remarked that AI has become a “suitcase term.” Indeed, some companies are rebranding things they already did as artificial intelligence, making it challenging to discern genuine innovation from marketing hype.
Risks and Regulations
The journey with AI is not without its obstacles. Some examples are intellectual property risks, the inability to adapt to rapid changes, and potential regulations that could disrupt business models. There is also the question of how much of the AI hype is just that: hype. As Kathryn Rooney Vera, StoneX’s chief market strategist, said, “Everybody wants to be in the space, or they talk about being in the space.”
The Path Forward
While the landscape of generative AI may be rife with excitement, uncertainty, and a dash of skepticism, it’s clear that its impact on the business world is significant and growing. Whether enhancing efficiency, uncovering novel solutions, or redefining customer engagement, generative AI is here to stay.
For companies on the edge of this transformative wave, embracing generative AI is now. The potential benefits are vast, and the innovative applications are only beginning to be explored.
Interested in understanding how AI and ethics intertwine, especially in the rapidly evolving landscape of generative AI? Want to explore how your organization can navigate the complex world of artificial intelligence effectively?
Engage Chuck Gallagher, a renowned ethics and AI speaker, author, and consultant, for insightful speaking or consulting opportunities. Reach out today and take the next bold step in your AI journey.
