• Global Research
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    • Disruptive technology

AI develops fast

  • Article

Data Matters

  • Big tech companies have announced impressive new Generative AI functionality
  • VC funding activity for the sector remains strong
  • Evidence suggests AI improves the performance of knowledge workers

The pace of development in Generative Artificial Intelligence (AI) continues to be incredibly fast. When we wrote on the topic earlier this year, we used a machine learning program to simulate a conversation with an artificial avatar.

Fast forward six months, technology has advanced further, with an automatic translation program now enabling me to appear to speak fluent Spanish, Chinese, French – and many other languages besides…

It’s an exciting time for the sector, as functionality improves and new applications become readily accessible. In our latest report, we explore three key recent developments.

We’ve seen new functionality announced from Google, Meta and OpenAI.

Between them, these tech giants have outlined extensions and improvements to chatbots, a more sophisticated text-to-image model, and new functionality in the form of “AI stickers”. This last example uses language and image generation models to produce virtual stickers – a bit like personalised emojis – for use in chats.

Investment in Generative AI start-ups has soared in 2023.

The total capital invested year-to-date has surpassed USD35bn. These investments have more than doubled compared with the levels observed in 2021 and 2022. Interestingly, venture capital (VC) investments have constituted the majority of the total investments in these start-ups. Since 2022, about 70% of the funding for start-ups has been sourced from VCs.

Finally, an answer to the question: “Can Generative AI actually help with productive work?”

A new study suggests that access to Generative AI tools can significantly improve the performance of knowledge workers… as long as it’s used for the right tasks. In fact, the research, based on tests carried out with hundreds of consultants, found the lowest performers saw the biggest benefit.

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