“Technology alone is not enough — it’s technology married with liberal arts, married with the humanities, that yields us the results that make our heart sing.”
This quote by Steve Jobs underscores the need for a balance between technology and the human element.
The statement "Just Google It !" has become a common phrase, suggesting that searching the internet can answer most questions. Similarly, with the growing popularity of Artificial Intelligence (AI), some wonder if "Ask ChatGPT" is the new rebranding of search? While there is no doubt that AI will bring solutions to enhance human intelligence, the explosion of AI information is overwhelming.
At the recent Berkshire Hathaway Annual Shareholders Meeting in May 2023, Charlie Munger and Warren Buffett were asked about their views on AI. Charlie Munger is skeptical of the hype surrounding AI, believing that old-fashioned intelligence is still effective. On the other hand, Warren Buffett believes that AI can do amazing things but will not replace the human gene.
Charlie Munger and Warren Buffett on Artificial Intelligence, 2023 Berkshire Hathaway Annual Shareholders Meeting (May 06, 2023)
Many experts predict AI will have a major impact on jobs, similar to the industrial revolution. Is this hype around AI real, and will it define the fate of the tech industry over the next 5-10 years?
AI is a new breed of computing that has super-human capabilities, but it is still unpredictable and mysterious. We are only at the beginning of this journey, and we have a long way to go to fully unravel the future of computing.
SOLUTIONISM —> Evgeny Morozov coined the term "Solutionism", which refers to the belief that all difficulties have benign solutions, often of a technocratic nature (sometimes before a problem has been identified). Solutionism is the mistaken belief that technology can solve all of mankind's problems by reducing their core issues to simpler engineering problems.
As per Morozov, Solutionism is an idea that given the right code, algorithms and robots, technology can solve all of mankind's problems, effectively making life "frictionless" and trouble-free. Morozov argues that this drive to eradicate imperfection and make everything "efficient" shuts down other avenues of progress and leads ultimately to an algorithm-driven world where Silicon Valley, rather than elected governments, determines the shape of the future.
However, Solutionism is flawed because it disregards or downplays critical information, often about context. To solve problems, you need to understand your customers and study their needs (“Jobs to Be Done”).
Now, Solutionism is part of the current Artificial Intelligence hype cycle.
While new AI products will significantly impact how we work, socialize, and play, we are drowning in a sea of hyperbole. AI has become a marketing term, and some companies exaggerate what their AI products can do, leading to concerns from the Federal Trade Commission (FTC). With the noise around AI getting progressively louder, FTC has warned (Feb 27, 2023): KEEP YOUR AI CLAIMS IN CHECK.
The FTC recognizes that AI is an ambiguous term with many possible definitions. It often refers to a variety of technological tools and techniques that use computation to perform tasks such as predictions, decisions, or recommendations. False or unsubstantiated claims about a product's efficacy are the FTC's bread and butter, and it cautions marketers against overusing and abusing hot marketing terms like AI.
While everyone is focused on AI, the question arises: Who is positioned to win this arms race?
It's not a horse race, but a marathon among today's incumbents with economic power and the numerous AI startups that are breeding every day. AI is characterized by lower barriers to entry, democratized access, and the push and large investments by big tech in driving innovation.
Building a new high-growth AI-powered company in a crowded industry is going to be brutally difficult. New companies need to distinguish themselves in a meaningful way, prove their worth, build strong cultures, delight their customers, establish their competitive advantages and justify their rising valuations.
Large Language Models (LLMs) do not define MOAT. The companies need to build solutions catering to the customer use cases and prove their worth. A recent study by BIRD (a BIg bench for laRge-scale Database) on benchmark study on large-scale databases found that ChatGPT falls significantly short of human performance.
ChatGPT + COT achieves only 40.08% in execution accuracy, which is still far from the human result of 92.96%.
Ultimately, AI is a tool, not a solution for everything. It's something that can be used (or abused).
Generative AI solutions have great potential, but it will take years and likely decades for AI to truly become mainstream and transform human lives. It's important to remember that AI is not a silver bullet that can solve all problems. It's just one tool in our toolkit.