Thursday May 4, 2023

Executive Briefings Business & Management: Generative AI

In keeping with our promise to share updates on Generative AI, we thought this piece on how it would be used by industry may prove perceptive. Now, based on IBM’s global AI adoption index, 35% of the companies in America are now using it in their processes. As a productivity enhancement tool, generative AI helps solve complex problems rapidly. It scans vast amounts of data to produce insights that traditional methods would take far longer. ChatGPT, for instance, works with complex algorithms to produce information and unlike traditional AI systems, that stick to pre-set rules, it can create something new by examining patterns within existing data sets. A well publicised application of generative AI is in language processing. It can construct original text or dialogue. ChatGPT, has the capacity to generate human-like responses to text prompts and is consequently ideal for chatbots as a customer service tool.

Another application is plausibly in the domain of legal functions, where contractual arrangements could be drafted using generative AI. This could undertake legal research, dissect case law and write legal documents, saving hundreds of man-hours. Contracts could also be scrutinised and prospective legal predicaments identified in advance, thus ensuring compliance. If things evolve as expected, the HR function will undergo some serious churn as processes are gradually automated. For instance, companies can devise a ‘virtual HR assistant’ to help employees with routine tasks like managing leave, administering benefits and introducing new hires to the firm. A chatbot can even offer career development recommendations to employees, based on their skills and interests. With generative AI, the use of chatbots will be much more expansive and the experience of users so more human like. Computers will behave as they do in science fiction movies.

Unlike conventional AI, the generative version can look for hidden configurations that may also prove elusive to human perception. ChatGPT can apparently analyse social media data to detect customers disposition towards a brand, proactively address issues, provide personalised offers. Besides, mass customisation can become the new mantra for enabling competitive advantage. In the manufacturing industry, AI-powered design tools would examine constraints such as weight, strength, and material usage, to generate the optimal blueprint for products. Applications could include the automotive industry, aviation and others where precision is important and designs based on dozens of variables. As computers learn more, through generative AI, they will become quicker and more accurate. Most significantly, ChatGPT could write code, hopefully efficiently and error-free. It would detect errors early and prevent embarrassing recalls.

The applications for generative AI are endless, both in terms of industry and functions. Pharma, bio-sciences, advanced materials, education, hospitality, entertainment, finance, banking etc. The list includes practically everybody and every process. Its adoption will create a quicker business world – faster design modifications, product launches, logistics. It will possibly be a game changer in the way we live our lives. It will change the way people work and the skill sets that they need to acquire to effectively do their job. Significantly, generative AI will save time – lots of time. Processes that in the normal course would take days, could be accomplished in a few minutes. Clearly, those that embrace this new technology quickly, will have a head-start.