NTT’s Chief Financial Officer, Takashi Hiroi, has highlighted energy consumption and pricing as the top challenges for enterprise generative AI in the future. Speaking at the VentureBeat Transform 2023 conference, Hiroi predicted that new guidelines and resilient global systems will help alleviate these challenges.
With revenues approaching $100 billion, NTT is a major player in the telecommunications industry, with a significant presence in the system integration market and a wide range of enterprise customers. The company has already implemented AI in various sectors, including IT support, translation services, and marketing data analysis.
One of the key concerns expressed by Hiroi is the energy consumption of AI models. He emphasized the need for edge-based computing solutions to bring data processing closer to the user, thus reducing energy demands. NTT is already working on edge computing services and plans to incorporate renewable energy sources into its solutions.
In addition, pricing AI services correctly is another economic challenge highlighted by Hiroi. Determining the value that AI brings to an enterprise is crucial for pricing the services accurately. This can be a complex task, considering the competitive nature of the market and the evolving nature of AI.
While some express concerns about the impact of AI on employment, Hiroi believes that automation trends are not new and can be effectively managed. He pointed out that industrial development has seen an increasing use of automated systems over the years. Therefore, he does not view the rise of AI as a significant threat to employment.
Ethical concerns surrounding AI were also addressed by Hiroi. He mentioned that NTT is developing guidelines to govern the use of confidential information in AI systems. He emphasized the responsibility of companies providing AI services to address ethical issues and ensure the proper use of AI.
Vab Goel, NTT VC founding partner, suggested that smaller AI companies collaborate with larger entities to expedite the use of their products. He advised companies to broaden their scope and explore opportunities with early-stage AI companies. Goel emphasized the importance of go-to-market strategies for these small companies.
In March, NTT announced a joint venture with Cisco to deploy 5G-based private networks. This partnership showcases NTT’s commitment to staying at the forefront of emerging technologies.
Overall, NTT recognizes the challenges that lie ahead for enterprise generative AI, particularly in terms of energy consumption and pricing. However, the company is optimistic that with the development of guidelines and resilient systems, these challenges can be effectively addressed and managed. As an industry leader, NTT continues to invest in research and innovation to solve these challenges and drive the adoption of AI technologies.
