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Generative AI creates value now

Article
Generative AI creates value now. The And it's not just for fun - but for universal AI has
speed of scaling by properly many practical applications, such as creating new
mobilizing the organization and products and optimizing business processes. So why
focusing on value will be far more wait?
important than the speed of piloting.
Unleash the power of generative AI and see what
AI has infiltrated our lives amazing creations you can come up with!
incrementally through everything
from the technology that powers our Did anything in this paragraph strike you? Probably
smartphones to the autonomous not. The grammar is perfect, the tone works, and
driving features on cars to the tools the narrative flows. That's why
retailers use to surprise and delight
consumers. ChatGPT - GPT stands for Generative Pre-Trained
Transformer - which is something that is getting so
As a result, its progress has been much attention right now. It is a free chatbot that
almost imperceptible. Generative AI can give an answer to almost any question asked
systems fall under the broad of it.
category of machine learning, and
here's how one such system, Developed by OpenAI and released for testing by
ChatGPT, describes what it can do: the general public in November 2022, it is already
considered the best chatbot AI. And it's popular,
Ready to take your creativity to the too: more than a million people have signed up to
next level? use it in just five days.
Look no further than generative AI!
Starry-eyed fans posted examples of chatbot
This nifty form of machine learning computer code creation, college-level essays,
allows computers to generate all poems, and even halfway-decent jokes.
sorts of new and exciting material,
from music and art to entire virtual Others, among a wide range of people who make
worlds. 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 (e.g., written text or images) that are not naturally
which generative AI differs from represented in tables with rows and columns (see
previous forms of AI or analytics is "Dictionary" panel below for a list of terms related
that it can effectively generate new to generative AI)
content, often in " unstructured "
forms Want to learn more about our
consulting practices? Marrbery
Users don't need a degree in ( e.g., written text or images) that are not naturally
machine learning to interact with or represented in tables with rows and columns (see
derive value from AI; almost anyone the "Glossary" sidebar for a list of terms related to
who can ask questions can use it. generative AI).
And, as with other breakthrough
technologies such as the personal The base model that allows a generative AI to work
computer or iPhone, a single is called a base model. Transformers are key
generative AI platform can create components of base models - GPT actually means
multiple applications for audiences generative pre-trained transformer.
of any age or education level and
anywhere with Internet access. Transformer – is a type of artificial neural network
that is trained using deep learning, a term that
How generative AI differs from other refers to the many layers (deep) in neural networks.
types of AI Deep learning has contributed to many recent
advances in artificial intelligence.
As the name implies, the main way in Nevertheless, some characteristics distinguish basic
which generative AI differs from models from previous generations of deep learning
previous forms of AI or analytics is that models.
it can effectively generate new
content, often in "unstructured" forms To begin with, they can be trained on extremely
( such as written text or images) that large and diverse sets of unstructured data. For
are not naturally represented in tables example, a type of basic model called a large
with rows and columns (see the language model can be trained on a huge amount
"Dictionary" panel below for a list of of text that is publicly available on the Internet and
terms related to generative AI). covers many different topics.

As the name implies, the main way in While other deep learning models can work on

which generative AI differs from significant amounts of unstructured data, they are

previous forms of AI or analytics is that usually trained on a more specific set of data. For

it can effectively generate new example, a model may be trained on a particular

content, often in "unstructured" forms 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 For example, across the banking industry, the
generative AI options can provide technology could generate value equal to an
additional $200 billion to $340 billion per year if
comes from four areas: customer
the use cases are fully realized. In retail and
management, marketing and sales,
consumer products, the potential impact is also
software development and research significant at $400 billion to $660 billion per year.
and development.
Generative AI can change the anatomy of work by
In 16 Business Functions, we looked at empowering individual workers by automating
63 use cases in which technology can some of their individual actions.
solve specific business problems in
ways that produce one or more Today's generative AI and other technologies can
measurable results. automate jobs that now consume 60 to 70 percent
of employees. In contrast, we previously estimated
Examples include the ability of that technology could automate half of the time
generative AI to support customer that employees spend at work.4The acceleration in
interactions, generate creative technical automation potential is largely due to the
content for marketing and sales, and increased ability of generative AI to understand
compose computer code based on natural language, which is required for work
natural language prompts, among activities that account for 25 percent of total work
many other tasks. time.

Generative AI will have a significant Thus, generative AI has a greater impact on


impact on all industries. knowledge jobs related to occupations that have
higher wages and educational requirements than
Banking, high-tech, and life sciences on other types of jobs.
are among the industries that could
see the greatest impact as a The pace of workforce transformation is likely to
percentage of their revenues from accelerate, given the increasing potential for
generative AI. technical automation.
Our updated adoption scenarios, The era of generative AI is just
including technology development, beginning. The excitement about this
economic feasibility, and timing of technology is palpable, and the early
diffusion, estimate that half of today's pilots are compelling.
work activities could be automated
between 2030 and 2060, with a But fully realizing the benefits of the
midpoint in 2045, or about a decade technology will take time, and
earlier than our previous estimates. business and community leaders still
Generative AI can significantly have serious challenges to address.
increase productivity in the economy, These include managing the risks
but it will require investment to inherent in generative AI, determining
support workers as they change work what new skills and capabilities the
activities or change jobs. Generative workforce will need, and rethinking
AI could provide 0.1 to 0.6 percent core business processes such as
productivity growth annually through retraining and developing new skills
2040, depending on the pace of
technology adoption and
reallocation of labor time to other Where the value of business lies.
activities. Combining generative AI
with all other technologies, work Generative AI – is a gradual change
automation could add 0.2 to 3.3 in the evolution of artificial
percentage points annually to intelligence.
productivity growth.
As companies seek to adapt and
Nevertheless, workers will need adopt it, understanding the
support in learning new skills, and technology's potential to create
some will change If worker transitions value for the economy and society at
and other risks can be managed, large will help make critical decisions.
generative AI can make a significant We used two additional lenses to
contribution to economic growth and determine where generative AI with
support a more sustainable, inclusive its current capabilities could provide
world. the most value and how big that
value might be (Application. 1).
Application 1

First, Lens scans use cases for quality content at scale. We identified
generative AI that organizations can 63 generative AI use cases covering
adopt. We define" use case "as a 16 business functions that can provide
targeted application of generative AI total value in the range of $2.6 trillion
to a specific business task that results to $4.4 trillion in economic benefits
in one or more measurable outcomes. annually when applied across
For example, an example of a industries. Traditional advanced
marketing use case is the application analytics and machine learning
of generative AI to create creative algorithms are very effective at
content such as personalized emails, performing numerical and
measurable results that potentially optimization tasks, such as predictive
include reduced costs of creating modeling, and continue to find new
such content, and increased revenue applications across a wide range of
from increased efficiencies of more 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 Machine learning is a type of artificial intelligence.
generative AI can provide in use Through machine learning, practitioners develop
cases for specific functions, the artificial intelligence using models that can "learn from"
technology can add value to the data models without human direction. The
entire organization by revolutionizing unmanageably huge volume and complexity of data
internal knowledge management (, unmanageable by humans anyway ) that is now
systems. Generative AI's impressive being generated has increased the potential of
mastery of natural language machine learning as well as the need for it.
processing can help employees gain
stored internal knowledge by What are the main types of machine learning
formulating queries in the same way models?
that they can ask a human question Machine learning is based on a number of building
and engage in an ongoing dialogue. blocks, starting with classical statistical methods
This can enable teams to quickly developed between the 18th and 20th centuries for
access relevant information, small data sets. In the 1930s and 1940s, computing
enabling them to make pioneers - including theoretical mathematician Alan
better-informed decisions quickly Turing - began working on basic machine learning
and develop effective strategies. methods. But these methods were confined to
laboratories until the late 1970s, when scientists first
What is the difference between developed computers powerful enough to mount
machine learning and artificial them.
intelligence?
Until recently, machine learning has been largely
Artificial Intelligence - That's pretty limited to predictive models used to observe and
much what it's like-the practice of classify patterns by content. For example, a classic
getting machines to mimic human machine learning problem is to start with an image or

intelligence to perform tasks. You've several images of, say, adorable cats. The program

probably interacted with AI even if would then identify patterns among the images and

you don't understand it -- voice then carefully learn random images for images that

assistants like Siri and Alexa are would match the pattern of the adorable cat.

based on AI technology, as are Generative AI was a breakthrough. Instead of simply

customer service chatbots that help perceiving and categorizing a photo of a cat,

you navigate Web sites. 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 What problems can a generative AI model
passage describing how to remove a solve?
peanut butter sandwich from a VCR
You've probably seen these generative AI tools (toys? )
in the style of the King James Bible.
like ChatGPT can generate endless hours of
AI-generated art models like DALL-E (,
entertainment. The opportunity is clear for business as
called a mixture of the surrealist
well. Generative AI tools can create a wide range of
Salvador Dali and the cute Pixar
credible emails in seconds, and then respond to
robot WALL-E ), which can create
criticism to make the writing more fit for purpose.
strange, beautiful images on
demand, like Raphael painting
This has implications for a wide range of industries, from
Madonna and a baby eating pizza.
IT and software organizations that can benefit from
Other generative AI models can
instant, mostly correct code generated by AI models,
create code, video, audio or business
to organizations needing marketing copy. In short, any
simulations.
organization that needs to produce clear written
material could potentially benefit.
But the outtakes aren't always
accurate - or appropriate. When Organizations can also use generative AI to create
Priya Krishna asked DALL-E 2 to come more technical content, such as higher-resolution
up with an image for Thanksgiving versions of medical images. And with the time and
dinner, it produced a scene where a resources saved here, organizations can leverage new
turkey was decorated with whole business opportunities and the ability to create more
limes, set next to a bowl of what value.
appeared to be guacamole. We've seen that developing a generative AI model is
so resource-intensive that it's out of the question for all
For its part, ChatGPT seems to have but the largest and most affluent companies.
trouble counting or solving basic
algebra problems-or indeed, Companies, who want to use generative AI for work,
overcoming the sexist and racist have the option of either using generative AI out of the
prejudices that lurk in the streams of box or fine-tuning them to perform a specific task.
the Internet and society more
broadly.
For example, If you need to prepare A revolution in medicine and health care: AI can play
slides according to a certain style, a significant role in the fields of medicine and health
you can ask the model to "find out" care, such as in disease diagnosis, individualized
how headings are usually written treatment, and the development of new drugs.
based on the data on the slides, then This could lead to more accurate diagnoses, improved
feed the slide data and ask to write health care, and increased life expectancy.
the appropriate headings.

Considerations for everyone. The Transport : AI can play an important role in the

As artificial intelligence (AI) continues development of autonomous vehicles and the

to evolve and be applied in various optimization of transportation systems. It can affect

fields, it has the potential to road safety, reduce travel time, and improve transport

significantly affect the course of efficiency.

history. Here are some of the possible


changes that AI can bring: Changing social interactions: AI can also affect our

Workforce Transformation: The social interactions and society as a whole. For

introduction of AI can lead to the example, the development of robots and virtual

automation of routine tasks and assistants can change the way we interact with

processes, which in turn can change technology and with each other

the structure of the workforce. Some


jobs may be replaced by AI, while History has shown, that new technologies can change

other areas may require new skills society. Artificial intelligence has already changed the

and specializations. way we live and work! But technology can also present

Improved productivity and efficiency: new and serious problems.

AI has the ability to analyze and


process large amounts of data at Stakeholders must act - and quickly, given the pace at

high speed and accuracy. This can which generative AI can be adopted - to prepare to

lead to improved productivity and address both opportunities and risks

efficiency in a variety of industries,


including manufacturing, healthcare,
finance, and others.
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.

Want to learn more about consulting?

Find more of this kind of


materials on

Marrbery Insights

__________________________________________________________________

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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