Economic potential of generative AI | McKinsey
Introductory thoughts: The Potential of Generative AI
The world is not static, and neither are the solutions we need to solve its various challenges. We are living in an age where technology has integrated itself into every sphere of our lives. One such technology that’s creating a huge impact is artificial intelligence (AI). It has vastly changed the way we live and work, creating new opportunities for businesses and individuals alike.
One field within AI that’s gaining traction and showing enormous potential is generative AI. Genrative AI is more than just automation. It involves deploying algorithms capable of learning by example, then generating new content based on those learnings. This means that machines can now create something entirely new, making way for massive transformations in several industries.
Let’s picture a simple scenario. Consider a music company utilizing generative AI, training it using tracks from various genres. This AI model could generate new melodies that combine elements of these genres, creating fresh music tracks. That said, it offers great benefits and we’ll explore them in detail.
- Generative AI can tackle creative block, providing assistance to artists by presenting fresh ideas.
- It can reduce the load on content creators by fabricating textual, visual, or audio content based on initial inputs.
- The significant time saved can be redirected towards strategic activities, enhancing productivity.
- Offering boundless creativity, generative AI can help design more engaging user interfaces.
- It empowers small businesses with limited resources to create professional quality content.
- Generative AI can also assist in cutting costs by minimizing human involvement in certain tasks.
Industrial Deployment of Generative AI
When you take a closer look at the business landscape, you will see numerous applications of generative AI already in action. Take the example of voice assistants, such as Alexa and Siri. These are powered by language models developed through generative AI that facilitate natural conversation with users.
In the same way, some social media platforms are using generative AI for text generation. Many ad campaigns now utilize AI to generate different versions of headlines, captions, and body content. Thus, every user receives ads customized to their interests, which increases the probability of them engaging with the content.
- Voice assistants represent the successful implementation of generative AI.
- A growing number of advertisement companies use AI to customize ad content for individual users.
- Automated news generators, like those used by Bloomberg and Associated Press, incorporate generative AI technology.
- E-commerce websites take advantage of this tech to automatically generate product descriptions.
- Generative AI is used in predictive text inputs on our mobile devices or search engines
- Websites designing softwares use generative AI to create UI layouts.
The Rise of the Artistic Machines
Even the traditionally human-driven field of arts is not untouched by generative AI. There’s been an explosion of AI art in recent years, toiled away at by machines instead of humans. Be it painting, music, poetry, literature, or film, AI’s ability to generate unique works of art poses questions about creativity and the nature of art itself.
ENIAC, the first computer, calculating a firing table for an artillery shell back in 1947, would have never dreamt of penning down a poem. And yet today, there are algorithms creating poetry that’s hard to distinguish from the words penned by a human.
- ChatGPT-3, a language prediction model can write poems based on specific themes.
- Taryn Southern, an artist, used Amper Music, a generative AI tool, to compose her album “I AM AI.”
- DeepArt.io, a platform using generative AI, turns photos into works of art.
- The artwork “Portrait of Edmond de Belamy,” created by a GAN (Generative Adversarial Network), was sold at Christie’s auction house.
- AIVA (Artificial Intelligence Virtual Artist) can create original and emotional soundtracks for films.
- Shelley is an AI system from MIT capable of writing scary stories that humans find compelling.
Creating Intellectual Property Challenges
Generative AI raises new questions when it comes to intellectual property rights. Who owns the content generated by machines? The user who instructed the machine? The coder who built the model? Or the machine itself?
While we are yet to come up with exact answers or formulations around this, it’s crucial to consider these IP challenges. Remembering that copyright law differs across borders, and laws might need to adjust to recognize AI-generated creations.
Take the case of “Portrait of Edmond de Belamy” for instance. It was created by a GAN and was successfully auctioned off. Questions arose over who owns the painting. Is it the Paris-based collective ‘Obvious’ who coded the algorithm, or the AI model itself?
- Countries like UK, Ireland, and New Zealand have provided legal provisions for computer-generated works.
- U.S Copyright Office does not recognise works directly produced by a machine or mere mechanical process as creative.
- In Japan, AI-generated creations can be registered by a person who has made intellectual contributions to the creation process.
- Court cases like Naruto v. Slater (2018) sparked discussions about non-human legal protections in America
- The EU is considering adjustments to copyright law due to advancements in robotics and AI.
- Australia categorizes AI-created intellectual works the same as human creations under current laws.
The summary table below further encapsulates the key takeaways from this discussion.
|Benefits of Generative AI||Applications||Rise in Artistry||Intellectual Property Challenges|
|Battles creative block, enhances productivity, limitless creativity, cost-effective.||Voice assistants, customized Ad content, automated news generation, e-commerce product descriptions.||Aiding in poetry writing, music composition, converting photos into art, writing compelling stories.||Ownership debates, varying international laws and regulations, potential for legal provisions for AI contributions.|
To Sum It Up: Why generative AI Matters
As we’ve seen through our exploration, generative AI is a powerful tool that holds immense potential across industries. It can fuel innovation, drive efficiency, nurture creativity, and much more. However, to fully harness its capabilities, businesses need to understand both its potentials and pitfalls.
Emerging technologies like generative AI always bring about disruption, alongside new opportunities. Proactive engagement can help to guide this force for maximum benefit while mitigating risks. Ultimately, the future of generative AI depends on how humans choose to use, control, and evolve it.
In concluding, the interdisciplinary challenges posed by generative AI – such as those involving intellectual property rights – signal that this technological revolution shall require close collaboration amongst technologists, industry leaders, and policymakers. Nevertheless, the powerful potentials of generative AI make it a vibrant field worth investing in.