Generative AI, encompassing Large Language Models (LLMs) and image-generation models, has captured the public’s attention with easy-to-use interfaces like DALL-E and ChatGPT. As the AI landscape evolves and public acceptance grows, organizations must weigh the benefits and risks these innovative applications bring to a business setting. As a group of data science, machine learning, and AI practitioners, Elder Research keeps a keen eye on breakthroughs and developments in the field. We also collaborate with our clients in these areas, actively investigating how these technologies can be applied. Here we will outline a few potential benefits and risks of generative AI in business.
Potential Benefits of Generative AI
It is impossible to list all of the potential benefits of a new technology, so we focus here on a few applications that are important to different elements of a business—especially, those applications that enhance or speed up existing workflows. Here are four areas where generative AI can clearly provide value already: (1) coding assistants, (2) general workflow augmentation, (3) knowledge retrieval, and (4) image generation.
1. Coding Assistants:
2. General Workflow Augmentation:
3. Knowledge Retrieval:
4. Image Generation:
It’s difficult to comprehensively list the potential business applications of generative AI; however, these examples demonstrate how these applications are already providing novel capabilities.
Risks of Generative AI and Mitigation
Generative AI also comes with risks, as do all ML applications. We focus on four key business risks: legal, data privacy, factuality or correctness, and risks around control and ownership of the models.
Corporate Data Risk:
Factuality and Correctness Risk:
Model Ownership Risk:
Generative AI presents a substantial opportunity for organizations, but it also carries with it a number of risks that need to be carefully considered. When organizations explore these new technologies, it is imperative that they be diligent in safeguarding their personnel and their data. Organizations can better prepare themselves for the next wave of generative AI technologies by remaining informed about the current benefits and drawbacks of the technology. Investigating “convex” opportunities, where the potential for loss or harm is limited while the potential for gain remains unhindered, will provide organizations with actionable insights into these technologies and lay the groundwork for embracing the future of generative AI, whatever it may bring.