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Analysts warn that the impact will be felt “within years, not quarters.”
Artificial intelligence has already run the gamut, from Bill Gates’ belief that the advent of ChatGPT was as important as the invention of the internet, to claims by leading AI experts that artificial intelligence could wipe out humans. Experiencing praise and criticism.
Most experts agree that AI will change the way we live, work and play. ChatGPT is a powerful AI bot that can conduct human-like conversations and create effective and engaging content, dubbed by many tech luminaries as AI’s “iPhone moment”.
While the world is now looking at the next step in AI, some of the big questions are how will AI be monetized after that “iPhone moment” and ChatGPT’s breakthrough? After its appearance and impact, the question is what to do with Gates’ strong endorsement of AI’s ability to change the world. Importantly, while previous iterations of AI were able to read and write, ChatGPT can actually understand content and generate it.
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“The development of AI is as fundamental as the creation of microprocessors, personal computers, the Internet and mobile phones,” Gates wrote in his blog. “It will change the way people work, learn, travel, get health care, and communicate with each other. Entire industries will reorient around it. can be differentiated.”
Milford University Senior Analyst Daniel Wu is one of those keeping a close eye on the progress of AI in the world of ChatGPT, and while there is no doubt about the importance AI will play in the future, his main One such message is a warning. Don’t just get caught up in the hype.
Part of that hype was driven by a sharp rise in the value of some companies. U.S. tech company Nvidia, which makes AI chips and other AI hardware, is up 165% this year. This kind of rise is reminiscent of the dot-com boom and bust of the early 2000s, but Wu says AI will live on, although key questions remain.
“The benefits of generative AI will be felt for years, not quarters,” he says. “ChatGPT may have been the ‘iPhone moment,’ but it took him five to seven years before the iPhone was fully developed. Milford sees the risk of overestimating the short-term benefits of generative AI and underestimating the long-term benefits. “
When it comes to AI, Nvidia has a 90 percent share of the “training” market, he said. Companies such as Google, Microsoft, Meta, and Amazon are investing heavily in building large-scale language models similar to ChatGPT. At ChatGPT, billions of words and meanings in many languages are used to “train” his AI models, primarily on his Nvidia hardware.
But when it comes to the “inference” market — the actual use of AI models across many potential and existing applications — Nvidia’s share is less than 25%, Wu said. As AI moves more into inference, the big problem facing the company is sustaining growth.
The future business and consumer use of AI has a lot of room for development, but there is still no clear view of who will be at the forefront. One potential problem is commoditization. “The problem is the data, most of which are derived from the same publicly available data pool, which can lead to the rapid commoditization of these large language models.”
A group of AI providers could offer essentially the same product or service, creating “table stakes,” a business term for minimum entry requirements for a product or service, Wu said.
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Proprietary data is therefore an important part of developing AI into premium applications, as opposed to the “easy wins” or “quick wins” of widely available AI applications. Premium applications could be seen in consumer-facing developments, such as AI taking over some routine tasks for businesses and enhanced bots that make the consumer experience more enjoyable. The advanced use of data by AI is most easily seen in the healthcare sector.
In the investment community, the focus is often on identifying small businesses that have the potential to make breakthroughs in AI and drive Nvidia-style stock price appreciation. But Wu says big companies aren’t at a disadvantage in the race to monetize AI.
Big companies, he said, have deep pockets and researchers to bring the next big breakthrough, and they’re adopting different strategies to pursue the next era of AI. Microsoft made a smart move by partnering with his OpenAI. Meta also “could be a big player in a world where it becomes much easier to generate content such as text, images, and videos.” And where is it most likely to end up? Probably Facebook and Instagram. “
Initially considered an “AI loser,” Google now has more AI products out there and a strong AI strategy. This shows that it’s worth noting companies that were perhaps hastily mislabeled.
“Because of the computational requirements and the task of building large language models for generative AI, the benefits may be more pronounced for larger players,” Wu said.
With global headlines and warnings from experts like Geoffrey Hinton, one of the fathers of AI, that AI could wipe out humanity, Wu said the real target is regulation. He said he felt it was the authorities.
“By its nature, regulators are slow to respond and tend to lag behind rapid technological advances. Therefore, ethical and existential considerations and issues related to the regulation of AI are at the forefront of AI and the field of AI. These are just some of the challenges facing investment, and regulators need to pick up the pace to address these challenges.”
“So I think it’s important to have a long-term view and not lose that long-term view,” Wu said. “It’s important to stay grounded and not just follow the hype. Again, the real impact of AI will be felt in years, not quarters.”
Artificial intelligence has already run the gamut, from Bill Gates’ belief that the advent of ChatGPT was as important as the invention of the internet, to claims by leading AI experts that artificial intelligence could wipe out humans. Experiencing praise and criticism.
Most experts agree that AI will change the way we live, work and play. ChatGPT is a powerful AI bot that can conduct human-like conversations and create effective and engaging content, dubbed by many tech luminaries as AI’s “iPhone moment”.
While the world is now looking at the next step in AI, some of the big questions are how will AI be monetized after that “iPhone moment” and ChatGPT’s breakthrough? After its appearance and impact, the question is what to do with Gates’ strong endorsement of AI’s ability to change the world. Importantly, while previous iterations of AI were able to read and write, ChatGPT can actually understand content and generate it.
“The development of AI is as fundamental as the creation of microprocessors, personal computers, the Internet and mobile phones,” Gates wrote in his blog. “It will change the way people work, learn, travel, get health care, and communicate with each other. Entire industries will reorient around it. can be differentiated.”
Milford University Senior Analyst Daniel Wu is one of those keeping a close eye on the progress of AI in the world of ChatGPT, and while there is no doubt about the importance AI will play in the future, his main One such message is a warning. Don’t just get caught up in the hype.
Part of that hype was driven by a sharp rise in the value of some companies. U.S. tech company Nvidia, which makes AI chips and other AI hardware, is up 165% this year. This kind of rise is reminiscent of the dot-com boom and bust of the early 2000s, but Wu says AI will live on, although key questions remain.
“The benefits of generative AI will be felt for years, not quarters,” he says. “ChatGPT may have been the ‘iPhone moment,’ but it took him five to seven years before the iPhone was fully developed. Milford sees the risk of overestimating the short-term benefits of generative AI and underestimating the long-term benefits. “
When it comes to AI, Nvidia has a 90 percent share of the “training” market, he said. Companies such as Google, Microsoft, Meta, and Amazon are investing heavily in building large-scale language models similar to ChatGPT. At ChatGPT, billions of words and meanings in many languages are used to “train” his AI models, primarily on his Nvidia hardware.
But when it comes to the “inference” market — the actual use of AI models across many potential and existing applications — Nvidia’s share is less than 25%, Wu said. As AI moves more into inference, the big problem facing the company is sustaining growth.
The future business and consumer use of AI has a lot of room for development, but there is still no clear view of who will be at the forefront. One potential problem is commoditization. “The problem is the data, most of which are derived from the same publicly available data pool, which can lead to the rapid commoditization of these large language models.”
A group of AI providers could offer essentially the same product or service, creating “table stakes,” a business term for minimum entry requirements for a product or service, Wu said.
Proprietary data is therefore an important part of developing AI into premium applications, as opposed to the “easy wins” or “quick wins” of widely available AI applications. Premium applications could be seen in consumer-facing developments, such as AI taking over some routine tasks for businesses and enhanced bots that make the consumer experience more enjoyable. The advanced use of data by AI is most easily seen in the healthcare sector.
In the investment community, the focus is often on identifying small businesses that have the potential to make breakthroughs in AI and drive Nvidia-style stock price appreciation. But Wu says big companies aren’t at a disadvantage in the race to monetize AI.
Big companies, he said, have deep pockets and researchers to bring the next big breakthrough, and they’re adopting different strategies to pursue the next era of AI. Microsoft made a smart move by partnering with his OpenAI. Meta also “could be a big player in a world where it becomes much easier to generate content such as text, images and videos.” And where is it most likely to end up? Probably Facebook and Instagram. “
Initially considered an “AI loser,” Google now has more AI products out there and a strong AI strategy. This shows that it’s worth noting companies that were perhaps hastily mislabeled.
“Because of the computational requirements and the task of building large language models for generative AI, the benefits may be more pronounced for larger players,” Wu said.
With global headlines and warnings from experts like Geoffrey Hinton, one of the fathers of AI, that AI could wipe out humanity, Mr Wu said regulators are actually being targeted. He says he feels that
“By its nature, regulators are slow to respond and tend to lag behind rapid technological advances. Therefore, ethical and existential considerations and issues related to the regulation of AI are at the forefront of AI and the field of AI. These are just some of the challenges facing investment, and regulators need to pick up the pace to address these challenges.”
“So I think it’s important to have a long-term view and not lose that long-term view,” Wu said. “It’s important to stay grounded and not just follow the hype. Again, the real impact of AI will be felt in years, not quarters.”
For more investment insights, visit Milford’s Investor Center. milfordasset.com/investor-centre.
Earnings Disclosure: Milford Funds Limited holds shares in Microsoft, Alphabet and Meta on behalf of its clients.
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