Impact of Generative AI

Generative AI, a giant leap for humanity

Generative AI represents a significant shift in the interaction between humans and machines, impacting various aspects of technology and business.

Here are nine key points to summarize our perspective on generative AI:

1. Integral to Society: Generative AI is not just a technological innovation; it is a crucial part of a society where humans and machines collaborate closely.

2. Business Model Transformation: It is expected to bring about a reduction in the role of software providers in designing and deploying business functions of low-to-moderate complexity, urging a shift in their business models to offer distinct value based on generative A.

3. Enhanced IT and Customer Services: Coupled with technologies like hyperautomation and the metaverse, generative AI will fundamentally alter the delivery of IT and customer services, blending human and digital efforts.

4. Knowledge Management Revolution: It has the potential to transform byproducts of normal interactions into structured knowledge assets, thereby significantly easing the process of capturing institutional and subject matter knowledge.

5. Increased Productivity for Knowledge Workers: By leveraging large language models, generative AI can greatly enhance the productivity of knowledge workers.

6. Profound Interaction Shift: Gartner emphasizes that generative AI is not merely a technological or business trend; it represents a profound change in how humans and machines interact.

7. Demand for Human Oversight: As generative AI becomes more prevalent, there will likely be an increase in service support costs for software companies due to the need for human intervention to verify the accuracy of AI-powered systems.

8. Automation vs. Labor Arbitrage: In the future, the concept of digital arbitrage, where tasks are automated through digital means, is expected to supplant traditional labor arbitrage.

9. Strategic Imperative: Given its expansive influence, organizations are advised to strategize now for the integration and utilization of generative AI in their operations.

Generative AI is poised to play a transformative role in various sectors, necessitating a strategic approach to its adoption and integration.