I was recently asked to provide my opinions on the current state of the generative AI industry.
- Who is the winning player and how deep is the moat (and what is the source)? Key differentiator?
- The winning player is OpenAI, with 180 million active users. Google is close behind with 145 million active users. OpenAI’s ChatGPT has over 175 billion parameters, and the source is a diverse range of text data from the internet, including websites, books, articles, forum posts, and other publicly available written content. Key differentiators are being one of the first to market, one of the biggest models, and high quality of results.
- What risks are associated with the adoption of AI model training platforms, such as technology obsolescence or vendor lock-in?
- The risks are unpredictable ongoing costs, high setup costs, data security issues, and ethical concerns.
- Could you elaborate on the current trends shaping the Gen AI market, particularly those that are influencing decision-making processes at the C-suite level in smaller companies? How do these trends differ from those affecting larger corporations?
- The current trends include higher demand for personalization and increased usage across different industries. In terms of decision-making processes at the C-suite level in smaller companies, the trends are about trying to find a good cost-return balance, versus a larger corporation, which would be less concerned about costs and more about security and long-term success.
- A significant trend that is common across different sized companies is the desire to jump on and maximize benefits from Gen AI as quickly as possible.
