Rise of generative AI sparks new gold rush for tech industry

SAN FRANCISCO: The rise of generative artificial intelligence (AI) has sparked what some observers are calling the new gold rush for a tech scene that had been struggling to find the next big thing.

Generative AI uses deep-learning models that can create new content, including text and images, based on the past data that they were trained on. 

The rapid advances in the technology over the past year, in particular, have brought a sense of renewed possibility and purpose to the entire tech industry, said observers. 

‘UNTHINKABLE’ NOT TO HAVE AI INTEGRATED INTO EVERY PRODUCT, SERVICE

At Dreamforce, a major tech event in San Francisco earlier this month, AI dominated the agenda. 

The conference, an annual flagship event by enterprise software giant Salesforce, is considered a big deal in the global technology hub.

The launch of the popular generative AI chatbot ChatGPT by research laboratory OpenAI last November gave many people a glimpse of the possibilities of generative AI technology. 

ChatGPT is a natural language processing tool driven by AI technology that creates human-like conversational dialogue.

OpenAI chief executive officer Sam Altman said: “It will be unthinkable not to have intelligence integrated into every product and service. 

“It will just be an expected, obvious thing.”

AI has helped to quickly change the narrative around a tech industry that appeared to be struggling and was making headlines for mass layoffs at the start of the year.

Many experts believe that AI, like the rise of smartphones and social media, is rapidly changing the way people live and work.

Mr Rob Seaman, senior vice president of enterprise product at communication platform Slack, said: “I think (AI) is obviously on par with or bigger than what we saw from mobile or social previously. 

“And there is just a vibe here that there hasn't been, honestly, in two or three years, and it is really cool to see.”

MORE INVESTMENTS EXPECTED IN AI TECHNOLOGY

AI has been driving an influx of cash in both public and private firms. 

For instance, shares of tech firm Nvidia, whose chips are used in AI applications, are up more than 200 per cent for the year.

Businesses are expected to make significant investments in physical, digital, and human capital to acquire and put in place these new technologies.

Investment bank Goldman Sachs has predicted that investment in AI technology will approach US$200 billion worldwide by 2025.

“This is one of these tectonic shifts,” said Mr Jon Stine, executive director of non-profit organisation The Open Voice Network, which develops technical standards and usage guidelines for the future of conversational AI. 

“Generative AI is one of these major market changing technologies. 

“We’re just beginning to understand what this will do in terms of productivity, both of reshaping the industries (and) of reshaping how we understand and gain knowledge.”

Given the recent struggles of cryptocurrency – arguably the last big thing in Silicon Valley before ChatGPT showed up – and various issues such as the uncertainty over regulation, there is some scepticism about whether generative AI will live up to the hype. 

But observers said for now, it is full speed ahead throughout the tech industry.