ChatGPT sparks AI investment bonanza
The launch of the ChatGPT AI system by OpenAI has led to a surge of AI investment globally. Other tech giants like Google and Alibaba have released their own versions of AI systems, and investors are pouring in billions of dollars into startups specializing in generative AI, leading to the creation of a new dotcom bubble. This development has led to concerns that millions of jobs globally may be replaced, and the technology may start controlling humans. Even Tesla's CEO, Elon Musk, who has often warned of AI dangers, has announced plans to launch a rival to ChatGPT.
Generative AI is being integrated into major business functions such as customer services, marketing, software development, and other processes, resulting in massive benefits. Analysts predict that the next two to three years will redefine generative AI, making it an indispensable tool for companies worldwide.
The technology's current versions, including ChatGPT, are still being improved to be able to assist in the creative process with minimal human input. However, an even more intelligent upgrade, ChatGPT-4, was recently introduced, and version 5 is rumored to be released by year-end. AutoGPT, another advancement, recently launched, and can further automate tasks thatChatGPT needs human input for. Deutsche Bank's research shows that the total global corporate investment into AI has grown 150% since 2019 to nearly $180 billion (€164 billion), and the number of public AI projects rose to nearly 350,000 by the end of last year, with more than 140,000 patents filed for AI technology alone in 2021.
Startups can focus on adapting the current generative AI platforms for specialist uses, including cures for cancer, smart finance, and gaming, instead of reinventing what's already been created. According to Thomas Ramge, author and AI researcher, a new market is emerging where small startups can make creative use of the technology, even if they didn't create it themselves. While the US has led AI development thus far, China and India have also recently closed the gap. China is now responsible for 18% of all high-impact AI projects, compared to 14% for the US, according to Deutsche Bank.
There is a threat posed by authoritarian governments like Beijing, which could use AI to control not only their population but the rest of the world. However, China's government has been regulating AI because they see that it could cause them to lose control. Western tech giants are pushing the technology toward the outer edges of acceptability and beyond, and repeated warnings of the need to avoid an AI arms race have fallen on deaf ears. The EU's two years of work on the Artificial Intelligence Act were upended by the launch of ChatGPT, sending policymakers back to the drawing board.
Europe is struggling to match the hunger of its US and Asian tech counterparts in the generative AI space due to investors being risk-averse. One potential solution is the German plan to create a European AI infrastructure known as LEAM, and the Heidelberg-based startup Aleph Alpha, which has raised just $31.1 million to date versus OpenAI's $11 billion. Europe, however, is failing to transfer knowledge out of universities into rapidly growing startups that bring new technology to the market.
