Is generative AI going to play a vital role in enterprises? Will it live up to expectations of the market?
AI capital expenditure is huge — in the coming years it will reach $ 600 billion to $ 1 trillion. Along with it, the spending on IT will rise 8 per cent in 2024.
In early 2000s, there was dotcom boom and the results were disastrous. These days businesses focus on market potential and adopt metrics for measuring gains and cost savings. The businesses use more sophisticated risk models and more robust RoI calculations. They have learned from their mistakes in the past from the dotcom era.
Generative AI is promoted as something magical and a general-purpose solution for enhancing the capability of many business processes. This cannot be done in one stroke. Companies roll out AI tools without telling how to use them effectively. There should be necessary training to use the tool.
Generative AI is being used increasingly in certain sectors — in video games, for concept art and for asset generation. AI is being put to use in trading, hedging, research, apps and database. It replaces humans. Customer service chatbots of different companies can d the work of several hundred human employees. It can save lot of costs for finance companies.
It is difficult to measure RoI of AI. There we will have to consider abstract values such as efficiency and productivity. These values will have to be quantified.
There are issues of bias, copyright infringement and erosion of human agency.
All said and done, the skepticism about AI is healthy and is required. Still AI has come to stay in industries such as customer service, gaming, marketing and other creative industries.
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