Dr. Mark Drapeau is a Partner at the RXN Group and Editor In Chief of the Data Catalyst Institute.
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French President Emmanuel Macron wants Europe to be a leader in its innovation. U.S. federal regulators are investigating major players in its industry. Actress Scarlett Johansen was shocked when it sounded like her and hired a lawyer. Creative Artists Agency CEO and Hollywood power agent Bryan Lourd sees nothing but opportunities in it (paywall). J.P. Morgan Chase CEO Jamie Dimon thinks it could be as transformational as electricity and is training every new hire on it. And, not to be outdone, Elon Musk estimates there is a 10% to 20% chance it will destroy humanity.
“It” is artificial intelligence, or AI, of course. You already know this because seemingly everyone is gossiping about AI's threats and opportunities in every power center of America, from Silicon Valley to Hollywood, Wall Street and Washington, DC. Many average people are experimenting and enhancing their everyday lives with relatively simple tools such as ChatGPT and Perplexity. Consulting firm Penta Group even has data showing that AI is a top-of-mind 2024 election issue for voters.
Why this? Why now?
While the concept of AI has technically been around since the 1950s, recent advances in large language models, chips, data centers and human-centric computing interfaces have rapidly accelerated innovation, investment in new companies and, perhaps more than anything, people’s imaginations. We can use AI for shopping, filmmaking, healthcare, exploring Mars and much more.
If work were an endless series of gossipy happy hours and dinner parties, this level of information would serve you well. You could either take the side that AI is disruptive, dangerous and diabolical or that it is exciting, efficient and economically valuable. To go beyond the trivial, leaders need to read between the headlines and explore what is really happening at the edge of AI development.
First, how does AI actually help customers, workers, businesses and even governments? In my role, I do policy and business research. With AI being a huge topic, I'm learning about it like anyone else. Based on my research, AI can add value in three repeatable ways, no matter what industry, country or topic area you are interested in. In order from easiest to hardest: One, if implemented well, it can make people and processes more efficient. In other words, it can help save time and money. Two, it can help businesses grow by powering aspects of marketing, sales, product fulfillment, customer service, etc. And three, it can lay the groundwork for entirely new innovations for the future.
Second, which companies are actually implementing or testing AI right now, and how? How AI is implemented in certain areas is really specific, and one has to dig into the nuances. For example, a topic as broad as “healthcare” includes many important topics where AI would be applied in different ways: education, patient records, cancer tests, drug discovery and predictive medicine. And that list is far from exhaustive.
Let’s briefly examine two key topical areas important to innovators, the business community and society at large: shopping and banking. Consider this a free guide to gossiping better about AI at your next dinner party.
Shopping: While some developments are more recent in retail and commerce, AI has been used by large retail stores for years. Fast-fashion brand H&M started an AI department in 2018, which today analyzes consumer buying trends, informs the company's buyers with key insights that help guide their decisions, forecasts demand and helps the company make more sustainable choices. In 2019, retail giant Walmart was already using AI-enhanced security cameras in stores to prevent stealing and in parking lots for customer safety. And both Walmart and Amazon are leveraging AI to help online customers with virtual clothing try-ons.
Banking: As you probably know, banks and credit card companies already have fraud detection. You probably also know that it’s somewhat error-prone. However, Mastercard’s new “Decision Intelligence Pro” technology uses generative AI to improve the speed and accuracy of fraud detection and prevention. Meanwhile, a survey of 157 hedge fund managers by the Alternative Investment Management Association found that 86% of respondents, who manage billions of dollars in assets, allow their staff to use GenAI. And, Morgan Stanley is rolling out an AI bot to help its wealth managers conduct research about investment strategies more efficiently.
As you can see, when you dive into broad industries like retail or banking, AI applications are specific and diverse and go far beyond this article. Commercially, AI enhancements are already affecting your life, probably without you realizing it, and they range from the trivial to the important merely by being deployed in different settings: While customers of dating apps are deploying AI to “up their game” and increase chat engagement of potential paramours, an AI-powered chatbot named Limbic is engaging people in the UK who are less likely to ask for mental health services they need.
Wherever you look, AI is sure to be lurking behind the scenes. Moving forward, business leaders need to stay abreast of changes and developments happening in the AI space. It's one of the biggest topics in the world right now, and failing to keep up with industry-shaking developments and technologies could put you out of business. My advice is to learn about what's happening with peer companies. Understand what is real and what is hype. Then, figure out how AI might fit into your world.
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