The global technology sector has been given a massive boost as the release of ChatGPT, a content-generating platform created by research and development company OpenAI, has sparked a bonanza of investment into artificial intelligence (AI). Major tech companies including Google and Alibaba have responded in kind by releasing their own AI-based offerings, as major investors from China to Silicon Valley pour tens of billions of dollars into startups specialising in generative AI. Analysts predict that this could be the start of a new dot-com bubble.
One of the major draws for businesses and organisations when it comes to generative AI is its ease of integration into already existing tools. As the technology has grown more sophisticated, the ability of algorithms to replace human creativity has created some controversy, particularly with the potential jobs being replaced and the thrill of an AI arms race. Nonetheless, even Tesla CEO Elon Musk, who has publicly voiced his condemnations of AI, has announced plans to launch a ChatGPT rival.
The emergence of generative AI has meant that the time it takes for projects to be completed is drastically reduced. Companies have already begun to benefit from the technology, from small startups to the tech giants. For instance, AI is already being integrated into several Microsoft Office applications.
Research conducted by Deutsche Bank showed that corporate investment into AI rose 150% in 2020 to $180 billion and this figure is expected to keep rising. This increase in investment has is reflected in the rise of public AI projects, of which there are now more than 350,000. China is now a major player with 18% of high-impact AI projects, thus capitalizing on the intensity of the AI arms race.
The emergence of AI however, has heightened fears of an authoritarian regime like China using AI to control the world’s population. While experts are right to be concerned, it this isn’t the only potential danger, as western tech companies race to push the boundaries of AI and their investors demand increasingly higher returns.
In Europe, efforts to introduce AI regulations have been delayed due to the launch of ChatGPT, as organisations look to catch up with the US and Asia. However, investors are risk-averse, meaning startups have to focus on adapting existing AI platforms to specific usages, such as gaming or finance. Two possible stars in this sector are the European AI infrastructure LEAM, and the German startup Aleph Alpha, which has raised $31.1 million to date.
Overall, the emergence of AI, and ChatGPT in particular, have set in motion a powerful wave of investment, regulation, and competition as companies and countries race to be at the forefront of this cutting-edge technology. With AI becoming increasingly and quickly accessible to organisations of all sizes, the effects will be felt across the world as the months and years go by.
