There is no question that Artificial Intelligence is the future and the monetary impact will be tremendous, in the Trillions, over the next 10 years but that impact will be felt even sooner than that. I want to go over the different types of AI that are out there today so that a better picture can be painted for everyone.
There are several levels of AI, each with its own purpose and impact. They are in hyper growth mode and in the early stages of what their ultimate value could be, some companies like Meta Platforms, Amazon, Google and Microsoft have embraced AI as the future of their companies.
Some areas of AI include reactive machines which are the most basic form of AI, capable of recognizing and responding to specific stimuli. Their functions are limited to recognizing and reacting to events, without the ability to form memories or make decisions based on past experiences. They are used in applications such as video games and traffic lights.
Some functions of reactive machines include image recognition, it can be trained to recognize objects in images and respond accordingly. Voice recognition, it can be trained to recognize specific keywords or phrases in human speech and respond with a pre-programmed response. Motion detection, they can be trained to detect movement and respond with a pre-programmed action, such as turning on a security camera or activating an alarm. Reactive machines AI can play simple games, such as chess or tic-tac-toe, by recognizing the current state of the game and responding with the next move.
As you can see we all in some way use some type of basic AI on a daily basis, this is not new technology but it has been the foundation for further innovation. Reactive machines AI are the most basic form of AI and more advanced AI is being wroked on that will impact advanced in manufacturing, technology and our daily lives.
Some more advanced levels of AI include Limited Memory, these AI systems can store and use past experiences to make decisions in the present. They are used in self-driving cars to make real-time driving decisions based on previous events. Tesla and Mercedes have embraced this technology to advance their autonomous vehicles, which could eventually graduate to trucks, trains, planes and aerospace.
Theory of Mind, these types of systems is part of what have people concerned, that a machine can have a basic understanding of human emotions, beliefs, and desires with it getting more advanced as it learns. This is a work in progress and it will be years before this comes to life but the jury is still out as to whether this is a good thing or a bad thing. The other part of what have people concern is Self-Aware Systems, these systems have a sense of self and consciousness, again a potentially scary prospect for anyone that has seen Terminator the movies but again we are years away from this becoming a reality. Again the jury is still out on this part as well.
The purpose and impact of these different levels of AI vary greatly as you can see, they serve their specific purposes. Reactive machines and limited memory AI systems are already widely used in a variety of applications and have had a significant impact on efficiency and automation. The development of more advanced levels of AI, such as Theory of Mind and Self-Aware Systems, have the potential of bringing significant changes in how we interact with technology, but there are points to consider such as the ethical and societal impact, good and bad.
One type of AI that Meta Platforms has been focusing on as of late is Generative AI, this has the potential to significantly impact various industries, including technology, design, and entertainment and more.
Lets map out of some of the pros and cons.
- Increased efficiency and automation in tasks that were previously performed by humans.
- Ability to generate new and unique content, such as music, art, and writing.
- Improved decision-making through data analysis and modeling.
- Potential job loss as tasks are automated.
- Ethical concerns regarding the creation and use of generated content.
- Risk of creating biased or inaccurate outputs if the AI model is not properly trained.
In terms of growth potential, big tech sees this as the future and it actually is, the AI industry in itself is expected to continue growing at a rapid pace, with a projected compound annual growth rate (CAGR) of more than 20% over the next few years. This growth is driven by increasing demand for AI technology in various industries, as well as advancements in hardware and software from startups such as OpenAI and big tech players such as Microsoft, Google, Amazon and Meta, these advancements will enable more powerful AI systems.
It is estimated that the AI market will reach $350 billion by 2025, with the majority of that growth coming from the enterprise sector. In ten years it could reach into the trillions of dollars, which would impact big tech and their investors in a positive way. Companies are increasingly investing in AI technology to improve their operations and gain a competitive edge in the market, driving demand for AI solutions and services. Microsoft for example slated an additional $10 billion for OpenAI’s systems while Meta and Google are creating in-house system that will pave the way of tomorrow. All companies in this space are considered to be hypergrowth companies and shouldn’t be looked over.
In the end as AI advances one of the important thing to be considered are the potential impact of these systems on society and the economy, we can only hope that as a society that profits do not out way the negative impact that certain types of AI can have long term. So responsibly development and deployment of AI technology is key and should take into account the benefits that it will have on humanity as a whole.