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Generative AI creates value now

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Generative AI creates value now. The
speed of scaling by properly
mobilizing the organization and
focusing on value will be far more
important than the speed of piloting.
AI has infiltrated our lives
incrementally through everything
from the technology that powers our
smartphones to the autonomous
driving features on cars to the tools
retailers use to surprise and delight
consumers.
As a result, its progress has been
almost imperceptible. Generative AI
systems fall under the broad
category of machine learning, and
here's how one such system,
ChatGPT, describes what it can do:
Ready to take your creativity to the
next level?
Look no further than generative AI!
This nifty form of machine learning
allows computers to generate all
sorts of new and exciting material,
from music and art to entire virtual
worlds.
And it's not just for fun - but for universal AI has
many practical applications, such as creating new
products and optimizing business processes. So why
wait?
Unleash the power of generative AI and see what
amazing creations you can come up with!
Did anything in this paragraph strike you? Probably
not. The grammar is perfect, the tone works, and
the narrative flows. That's why
ChatGPT - GPT stands for Generative Pre-Trained
Transformer - which is something that is getting so
much attention right now. It is a free chatbot that
can give an answer to almost any question asked
of it.
Developed by OpenAI and released for testing by
the general public in November 2022, it is already
considered the best chatbot AI. And it's popular,
too: more than a million people have signed up to
use it in just five days.
Starry-eyed fans posted examples of chatbot
computer code creation, college-level essays,
poems, and even halfway-decent jokes.
Others, among a wide range of people who make
their living creating content, from advertising
copywriters to full-time professors, quake in their
boots.
Exhibit 1
As the name implies, the main way in
which generative AI differs from
previous forms of AI or analytics is
that it can effectively generate new
content, often in " unstructured "
forms
(e.g., written text or images) that are not naturally
represented in tables with rows and columns (see
"Dictionary" panel below for a list of terms related
to generative AI)
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Users don't need a degree in
machine learning to interact with or
derive value from AI; almost anyone
who can ask questions can use it.
And, as with other breakthrough
technologies such as the personal
computer or iPhone, a single
generative AI platform can create
multiple applications for audiences
of any age or education level and
anywhere with Internet access.
How generative AI differs from other
types of AI
As the name implies, the main way in
which generative AI differs from
previous forms of AI or analytics is that
it can effectively generate new
content, often in "unstructured" forms
( such as written text or images) that
are not naturally represented in tables
with rows and columns (see the
"Dictionary" panel below for a list of
terms related to generative AI).
As the name implies, the main way in
which generative AI differs from
previous forms of AI or analytics is that
it can effectively generate new
content, often in "unstructured" forms
( e.g., written text or images) that are not naturally
represented in tables with rows and columns (see
the "Glossary" sidebar for a list of terms related to
generative AI).
The base model that allows a generative AI to work
is called a base model. Transformers are key
components of base models - GPT actually means
generative pre-trained transformer.
Transformer – is a type of artificial neural network
that is trained using deep learning, a term that
refers to the many layers (deep) in neural networks.
Deep learning has contributed to many recent
advances in artificial intelligence.
Nevertheless, some characteristics distinguish basic
models from previous generations of deep learning
models.
To begin with, they can be trained on extremely
large and diverse sets of unstructured data. For
example, a type of basic model called a large
language model can be trained on a huge amount
of text that is publicly available on the Internet and
covers many different topics.
While other deep learning models can work on
significant amounts of unstructured data, they are
usually trained on a more specific set of data. For
example, a model may be trained on a particular
set of images so that it can recognize certain
objects in the photos.
In fact, other deep learning models However, because of the way modern basic
can often perform only one such task. models work, they are not suitable for all
They may, for example, either classify applications. For example, large language models
objects in a photo or perform another may be prone to hallucinate ", " or answer questions
function, such as generating with plausible but incorrect statements (see Sidebar
predictions. In contrast, a single below " Using generative AI responsibly "). In
foundation model can perform both addition, basic reasoning or answer sources are not
of these functions and generate always provided. This means that companies should
content. Foundation models combine be cautious when integrating generative AI without
these capabilities by learning patterns human control in applications where errors can
and relationships from the broad cause harm or where explainability is needed.
learning data they ingest, which, for Generative AI is also not currently suitable for
example, allows them to predict the directly analyzing large amounts of tabular data or
next word in a sentence. Here's how solving complex numerical optimization problems.
ChatGPT can answer questions about Researchers are working hard to address these
different topics and how DALL - E 2 limitations.
and Stable Diffusion can create
images based on descriptions. Key Ideas
The impact of generative AI on productivity could
Given the versatility of the base add trillions of dollars to the value of the global
model, companies can use the same economy. Our latest research shows that
model to implement multiple business generative AI could add the equivalent of $2.6
use cases, which is rarely achieved trillion to $4.4 trillion annually in the 63 use cases we
with earlier deep learning models. The analyzed - for comparison, the entire United
base model, which includes Kingdom's GDP in 2021 was $3.1 trillion. This would
information about a company's increase the impact of all artificial intelligence by
products, can potentially be used 15-40 percent. This estimate would roughly double if
both to answer customer questions ' we included the impact of implementing
and to support engineers in generative AI in software that is currently used for
developing updated versions of tasks other than those in use.
products. As a result, companies can
maintain applications and realize their
benefits much faster.
About 75 percent of the value that
generative AI options can provide
comes from four areas: customer
management, marketing and sales,
software development and research
and development.
In 16 Business Functions, we looked at
63 use cases in which technology can
solve specific business problems in
ways that produce one or more
measurable results.
Examples include the ability of
generative AI to support customer
interactions, generate creative
content for marketing and sales, and
compose computer code based on
natural language prompts, among
many other tasks.
Generative AI will have a significant
impact on all industries.
Banking, high-tech, and life sciences
are among the industries that could
see the greatest impact as a
percentage of their revenues from
generative AI.
For example, across the banking industry, the
technology could generate value equal to an
additional $200 billion to $340 billion per year if
the use cases are fully realized. In retail and
consumer products, the potential impact is also
significant at $400 billion to $660 billion per year.
Generative AI can change the anatomy of work by
empowering individual workers by automating
some of their individual actions.
Today's generative AI and other technologies can
automate jobs that now consume 60 to 70 percent
of employees. In contrast, we previously estimated
that technology could automate half of the time
that employees spend at work.4The acceleration in
technical automation potential is largely due to the
increased ability of generative AI to understand
natural language, which is required for work
activities that account for 25 percent of total work
time.
Thus, generative AI has a greater impact on
knowledge jobs related to occupations that have
higher wages and educational requirements than
on other types of jobs.
The pace of workforce transformation is likely to
accelerate, given the increasing potential for
technical automation.
Our updated adoption scenarios,
including technology development,
economic feasibility, and timing of
diffusion, estimate that half of today's
work activities could be automated
between 2030 and 2060, with a
midpoint in 2045, or about a decade
earlier than our previous estimates.
Generative AI can significantly
increase productivity in the economy,
but it will require investment to
support workers as they change work
activities or change jobs. Generative
AI could provide 0.1 to 0.6 percent
productivity growth annually through
2040, depending on the pace of
technology adoption and
reallocation of labor time to other
activities. Combining generative AI
with all other technologies, work
automation could add 0.2 to 3.3
percentage points annually to
productivity growth.
Nevertheless, workers will need
support in learning new skills, and
some will change If worker transitions
and other risks can be managed,
generative AI can make a significant
contribution to economic growth and
support a more sustainable, inclusive
world.
The era of generative AI is just
beginning. The excitement about this
technology is palpable, and the early
pilots are compelling.
But fully realizing the benefits of the
technology will take time, and
business and community leaders still
have serious challenges to address.
These include managing the risks
inherent in generative AI, determining
what new skills and capabilities the
workforce will need, and rethinking
core business processes such as
retraining and developing new skills
Where the value of business lies.
Generative AI – is a gradual change
in the evolution of artificial
intelligence.
As companies seek to adapt and
adopt it, understanding the
technology's potential to create
value for the economy and society at
large will help make critical decisions.
We used two additional lenses to
determine where generative AI with
its current capabilities could provide
the most value and how big that
value might be (Application. 1).
Application 1
First, Lens scans use cases for
generative AI that organizations can
adopt. We define" use case "as a
targeted application of generative AI
to a specific business task that results
in one or more measurable outcomes.
For example, an example of a
marketing use case is the application
of generative AI to create creative
content such as personalized emails,
measurable results that potentially
include reduced costs of creating
such content, and increased revenue
from increased efficiencies of more
quality content at scale. We identified
63 generative AI use cases covering
16 business functions that can provide
total value in the range of $2.6 trillion
to $4.4 trillion in economic benefits
annually when applied across
industries. Traditional advanced
analytics and machine learning
algorithms are very effective at
performing numerical and
optimization tasks, such as predictive
modeling, and continue to find new
applications across a wide range of
industries. However, as generative AI
continues to evolve and develop, it
can open up entirely new frontiers of
creativity and innovation.
In addition to the potential value
generative AI can provide in use
cases for specific functions, the
technology can add value to the
entire organization by revolutionizing
internal knowledge management
systems. Generative AI's impressive
mastery of natural language
processing can help employees gain
stored internal knowledge by
formulating queries in the same way
that they can ask a human question
and engage in an ongoing dialogue.
This can enable teams to quickly
access relevant information,
enabling them to make
better-informed decisions quickly
and develop effective strategies.
What is the difference between
machine learning and artificial
intelligence?
Artificial Intelligence - That's pretty
much what it's like-the practice of
getting machines to mimic human
intelligence to perform tasks. You've
probably interacted with AI even if
you don't understand it -- voice
assistants like Siri and Alexa are
based on AI technology, as are
customer service chatbots that help
you navigate Web sites.
Machine learning is a type of artificial intelligence.
Through machine learning, practitioners develop
artificial intelligence using models that can "learn from"
data models without human direction. The
unmanageably huge volume and complexity of data
(, unmanageable by humans anyway ) that is now
being generated has increased the potential of
machine learning as well as the need for it.
What are the main types of machine learning
models?
Machine learning is based on a number of building
blocks, starting with classical statistical methods
developed between the 18th and 20th centuries for
small data sets. In the 1930s and 1940s, computing
pioneers - including theoretical mathematician Alan
Turing - began working on basic machine learning
methods. But these methods were confined to
laboratories until the late 1970s, when scientists first
developed computers powerful enough to mount
them.
Until recently, machine learning has been largely
limited to predictive models used to observe and
classify patterns by content. For example, a classic
machine learning problem is to start with an image or
several images of, say, adorable cats. The program
would then identify patterns among the images and
then carefully learn random images for images that
would match the pattern of the adorable cat.
Generative AI was a breakthrough. Instead of simply
perceiving and categorizing a photo of a cat,
machine learning can now generate an image or text
description of the cat on demand.
How do text-based machine Creating a generative AI model has, for the most part,

learning models work? How are been a serious undertaking, to the extent that only a
few high-tech heavyweights have made the attempt.
they trained?
OpenAI, the company behind ChatGPT, the former
The first machine learning models for
GPT and DALL-E models, has billions in funding from
word processing were trained by
big-name donors. DeepMind is a subsidiary of
humans to classify different inputs
Alphabet, Google's parent company and Meta has
according to labels set by
released its Make-A-Video product based on
researchers. One example would be
generative AI. These companies employ some of the
a model trained to label social media
best computer scientists and engineers in the world.
posts as positive or negative. This type
of learning is known as supervised
But it's not just talent When you ask a model to train
learning because a human is
across almost the entire Internet, it will cost you.
responsible for "teaching" the model
OpenAI has not published exact costs, but estimates
what to do. Next-generation
show that GPT-3 trained about 45 terabytes of text
text-based machine learning models
data--that's about a million feet of a bookshelf or a
are based on what is known as
quarter of the entire Library
supervised learning. This type of
Congress — at an estimated cost of several million
learning involves feeding the model a
dollars. These are not resources that your startup in the
huge amount of text so that it can
garden can access.
generate predictions. For example,
some models can predict, based on
What kinds of products can a generative AI
a few words, how a sentence will
model produce?
end. With the right amount of sample
As you may have noticed above, output from
text-say, a wide range of the
generative AI models can be indistinguishable from
Internet-these text models become
human content, or they may seem a bit odd. The
quite accurate. We can see how
results depend on the quality of the model-as we have
accurate with the success of tools like
seen, ChatGPT's results so far surpass those of its
ChatGPT.
predecessors-and the fit between the model and the
use case, or input. ChatGPT can produce what one
What does it take to build a
commentator called a "solid" essay comparing the
generative AI model?
theories of nationalism from Benedict Anderson and
Ernest Gellner--in ten seconds.
It also produced an already famous
passage describing how to remove a
peanut butter sandwich from a VCR
in the style of the King James Bible.
AI-generated art models like DALL-E (,
called a mixture of the surrealist
Salvador Dali and the cute Pixar
robot WALL-E ), which can create
strange, beautiful images on
demand, like Raphael painting
Madonna and a baby eating pizza.
Other generative AI models can
create code, video, audio or business
simulations.
But the outtakes aren't always
accurate - or appropriate. When
Priya Krishna asked DALL-E 2 to come
up with an image for Thanksgiving
dinner, it produced a scene where a
turkey was decorated with whole
limes, set next to a bowl of what
appeared to be guacamole.
For its part, ChatGPT seems to have
trouble counting or solving basic
algebra problems-or indeed,
overcoming the sexist and racist
prejudices that lurk in the streams of
the Internet and society more
broadly.
What problems can a generative AI model
solve?
You've probably seen these generative AI tools (toys? )
like ChatGPT can generate endless hours of
entertainment. The opportunity is clear for business as
well. Generative AI tools can create a wide range of
credible emails in seconds, and then respond to
criticism to make the writing more fit for purpose.
This has implications for a wide range of industries, from
IT and software organizations that can benefit from
instant, mostly correct code generated by AI models,
to organizations needing marketing copy. In short, any
organization that needs to produce clear written
material could potentially benefit.
Organizations can also use generative AI to create
more technical content, such as higher-resolution
versions of medical images. And with the time and
resources saved here, organizations can leverage new
business opportunities and the ability to create more
value.
We've seen that developing a generative AI model is
so resource-intensive that it's out of the question for all
but the largest and most affluent companies.
Companies, who want to use generative AI for work,
have the option of either using generative AI out of the
box or fine-tuning them to perform a specific task.
For example, If you need to prepare
slides according to a certain style,
you can ask the model to "find out"
how headings are usually written
based on the data on the slides, then
feed the slide data and ask to write
the appropriate headings.
Considerations for everyone.
As artificial intelligence (AI) continues
to evolve and be applied in various
fields, it has the potential to
significantly affect the course of
history. Here are some of the possible
changes that AI can bring:
Workforce Transformation: The
introduction of AI can lead to the
automation of routine tasks and
processes, which in turn can change
the structure of the workforce. Some
jobs may be replaced by AI, while
other areas may require new skills
and specializations.
Improved productivity and efficiency:
AI has the ability to analyze and
process large amounts of data at
high speed and accuracy. This can
lead to improved productivity and
efficiency in a variety of industries,
including manufacturing, healthcare,
finance, and others.
A revolution in medicine and health care: AI can play
a significant role in the fields of medicine and health
care, such as in disease diagnosis, individualized
treatment, and the development of new drugs.
This could lead to more accurate diagnoses, improved
health care, and increased life expectancy.
The Transport : AI can play an important role in the
development of autonomous vehicles and the
optimization of transportation systems. It can affect
road safety, reduce travel time, and improve transport
efficiency.
Changing social interactions: AI can also affect our
social interactions and society as a whole. For
example, the development of robots and virtual
assistants can change the way we interact with
technology and with each other
History has shown, that new technologies can change
society. Artificial intelligence has already changed the
way we live and work! But technology can also present
new and serious problems.
Stakeholders must act - and quickly, given the pace at
which generative AI can be adopted - to prepare to
address both opportunities and risks
 Bottom line, We hope this research has contributed to a better understanding of the
Generative AI's ability to add value to the company operations and drive economic
growth and prosperity, as well as its potential to dramatically transform the way we work
and our purpose in society.

Companies, politicians, consumers, and citizens can work together to ensure that
generative AI delivers on its promise to create significant value while limiting its potential
to destroy lives and livelihoods. The time to act is now. Yet, generative AI represents
another promising leap forward and a world of new possibilities.

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__________________________________________________________________

Alexei Konovalov is a partner at Marrbery, where Natalya Shevchenko is a consultant; Marina

Krivosheya is a senior expert; and Maria Zankovetskaya is a consultant. The authors would like
to thank Alexander Kovalchuk and Anna Grinevich for their contributions to this article.

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