{"id":40294,"date":"2023-07-25T13:09:11","date_gmt":"2023-07-25T17:09:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/generative-ai-views-of-mit-prof-and-goldman-cio-bode-well-for-microsoft\/"},"modified":"2023-07-25T13:09:13","modified_gmt":"2023-07-25T17:09:13","slug":"generative-ai-views-of-mit-prof-and-goldman-cio-bode-well-for-microsoft","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40294","title":{"rendered":"Generative AI Views Of MIT Prof And Goldman CIO Bode Well For Microsoft"},"content":{"rendered":"
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Generative AI \u2014 the technology behind ChatGPT \u2014 is all the rage.<\/p>\n

Since late May, when it forecast expectations-beating revenue, chip designer, Nvidia\u2014 one of the biggest winners in the GAI brain rush \u2014 has added 47% to its market capitalization \u2014 which totaled nearly $1.1 trillion on July 24.<\/p>\n

With Microsoft
\n MSFT
\n <\/fbs-ticker> poised to report Q4 earnings July 25, is GAI a soon-to-fade fad or is it the next big thing? For answers, I interviewed experts including Danielle Li, MIT Sloan School professor and Marco Argenti, Goldman Sachs Chief Information Officer.<\/p>\n

Their answers suggest that GAI is on the rise \u2014 which bodes well for Microsoft\u2019s ChatGPT.<\/p>\n

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While uncertain how it will evolve, they envision an optimistic scenario in which GAI saves people time, helps boost business productivity, and possibly enables companies to increase revenue while abiding by humanistic values.<\/p>\n

To become widely adopted, Li and Argenti agree GAI must create tangible business value, avoid violating social norms, and comply with an organization\u2019s policies and regulations.<\/p>\n

Argenti \u2014 who considers GAI an innovation as significant as the printing press \u2014 describes how Goldman is experimenting with many applications to find the ones most likely to add value over the long term.<\/p>\n

Goldman\u2019s process strikes a balance between widespread idea generation and effective investment aimed at achieving high \u201creturn on attention.\u201d<\/p>\n

High-Value Uses Of GAI Will Succeed And Spread<\/h2>\n

Argenti rates Large Language Models among history\u2019s most important innovations. As he told me in a July 20 interview, \u201cFrom what I\u2019ve seen, [LLMs] are the largest, most profound revolution in technology since the invention of the printing press. [LLMs] are a revolution in how we manage and deal with knowledge in a scalable way.\u201d<\/p>\n

LLMs break two barriers that previously separated knowledge from people. As Argenti said, \u201cBefore the printing press, people needed to travel to be in physical proximity to books and be educated well enough to read and understand them. The printing press made it possible to copy books and spread them to libraries that were closer to people.\u201d<\/p>\n

While the printing press made books more physically available, they were no easier to understand \u2014 until LLMs \u2014 which \u201cbreak the comprehension barrier.\u201d As Argenti explained, \u201cThey explain something difficult in simpler terms. They put the reader and the writer at the same level. This doesn\u2019t just happen \u2014 it depends on how you ask questions. It works better if you break it down in steps.\u201d<\/p>\n

To succeed, GAI must pass the test of any successful business \u2014 it creates so much value for people they are willing to pay for it. As Li wrote in a July 17 email, GAI will be judged on the same basis as \u201cany business \u2014 whether it\u2019s contributing to a technology or product that people actually value. From the business side of it, [that means] a use that enables the company providing it to be paid in a sustainable way.\u201d<\/p>\n

Another important test is whether GAI applications offer unique value. \u201cIf you use (say) OpenAI tools to provide a product that anyone else with access to OpenAI tools can also build, you are really just a commodity service provider and won\u2019t stay in business long if you don\u2019t add something unique,\u201d noted Li.<\/p>\n

Moreover, GAI will not succeed if it merely makes gauzy promises not grounded in reality. As she noted, \u201cOne can imagine thinking about socially valuable things like combating climate change.\u201d Business leaders should view appealing sounding buzz phrase \u2014 such as \u201cgenerative AI for sustainability\u201d with a skeptical eye to discern whether it will result in a \u201cconcrete\u201d solution.<\/p>\n

The most transformative GAI applications will do things that could not be done before. Many will begin their GAI journies by speeding up something they already do \u2014 such as \u201ccoding, making small talk, drawing something cute, or brainstorming by combining old ideas.\u201d<\/p>\n

Yet Li sees the most potential value coming from using GAI to create \u201csomething we couldn’t have done before.\u201d In her view, GAI \u201cwill be used and normalized.\u201d<\/p>\n

Goldman is focused on GAI applications that enables its professionals quickly to deliver clients the most insight. As Argenti said, \u201cWe are a digital business and aim to provide information that is pertinent for a context. Time is the most valuable currency. We aim to invest in GAI applications that provide a return on attention.\u201d<\/p>\n

As he explained, such applications include:<\/p>\n