Generative AI is a type of Artificial intelligence tech that can produce contents like text, images, audio or even artificially generated data rather than generated by real world data. The primary reason behind its popularity is it’s simplicity of new user interfaces for creation high quality outputs. Read more to know about the emerging Generative AI Future.
Recently Generative AI startups like Typeface, French startup Mistral AI, and an Open source platform Hugging face raised $100 million, $113 million and $200 million in funding, respectively.
In an unstable market like of AI, such events is a rare spot of joy for VCs, but after the popularity of Open AI’s Chat GPT, these news brings some interest among AI funders, but some raise speculation. Additionally, it is important to notice the recent Anthropic AI funding and other VC events as well.
So the question is, whether AI is a product or really an innovation. Due this very fact Venture capitalists around Europe are sceptical and are stick to investment fundamentals.
AI startup could be broadly layered as hardware infra, software infra, basic models, data assets and end user app. Now hardware infra and data assets are crucial for seed stage investing, but does the guys claiming innovation have the other three.
Cons of Generative AI
According to the Washington Post, in 2022, imposter scams were the second most popular racket in America, with over 36000 reports of people being swindled by those pretending to be friends and family, according to data from Federal Trade Commission.
There is a lot of misrepresentation. 2 years back blockchain was the talk in the town, which after crypto crash, from FTX’s scam paved way to Gen AI bubble environment. In addition concerns like deepfakes, harmful cybersecurity attacks on businesses that comes by mimicking our known associates.
Although startups are plagued with failures Gen AI startups may see much bigger ones due to the fact that both founders and investors are from AI background, making investors less affluent in investment technique. Now this has caused failed startups and resulted in lack of capitals and drying of existing capitals.
Pros of Generative AI
Per McKinsey & Company’s research, gen AI could add the equivalent of $2.6 to $4.4 trillion which is more UK’s entire GDP in 2021. In addition, Gen AI could add value primarily towards Customer Operations, marketing and sales, software engineering, and R&D.
Across banking industry, this tech could deliver value equal to an additional $200 billion to $340 billion annually and in retail, consumer packaged goods this could exceed $600 billion.
With all its skepticism, our future is in making, the opportunity is endless, Gen AI developed and deployed to anticipate and fullfil human needs on a mass scale and to solve problems and technologies must live up to the standards we want for our future.
This popularity and boom in gen AI will help us to saturate down to the right one, Startups that haven’t proven themselves in various ways will be better out. It’s easy to do a demo but it’s something else entirely to build a product around it.
Gen AI are good at analysing and interpreting, so their usage is more defined there, but creativity still needs refinement.
To conclude, conservative mindset is optimum right now, but to ensure we have the capital ecosystem required to support the business at the forefront of Generative AI research and development. Overall, while Generative AI future has many exciting potential applications, it is essential to be aware of the risks associated with it and take steps to mitigate those risks.