Could artificial intelligence take over your job? The thought of computers and robots independently performing tasks and making decisions was once confined to the realms of science fiction, something we watched on the silver screen for entertainment. However, this concept has transcended fantasy and become a reality.
One of the pivotal moments in the history of AI was in 2016 when millions around the world tuned in to witness Google’s AI program DeepMind, AlphaGo defeat the greatest Go player in the world, Lee Sedol, four games to one.
Ever since then, the AI industry has seen rapid advancement and widespread adoption of AI technologies, ushering in an era of unprecedented change. AI, once a concept confined to science fiction, has evolved into the potential to reshape our world across various sectors. In fact, artificial intelligence business ventures have increased 14 times over the last two decades, with the AI market currently estimated to be $164.99 billion1,2.
How AI is Shaping the World
Over the past decade, AI has steadily become an integral part of businesses, enhancing efficiency and competitiveness.
Gone are the days when you had to wait for hours on the phone to speak to a customer service agent over a simple matter like requesting a refund. Thanks to AI, you can now interact with AI-powered chatbots for simple customer service operations. However, if it is a complicated enquiry, you will be redirected to a human customer service agent who can provide you with further support.
Furthermore, you can receive phone calls from an AI virtual assistant reminding you about outstanding bills. In such phone calls, some AI bots can listen to your responses and assist accordingly.
Not only does this improve customer satisfaction by providing round-the-clock support, but it also frees up human agents to focus on more complex tasks.
Retail titans like Walmart, Amazon and Alibaba have already established themselves as prominent names in the consumer industry, offering various products to meet customer desires and needs. But what if they could elevate their game further by anticipating market demand?
Well, it is already happening!
Retail giants are harnessing the power of AI-driven predictive analytics to forecast demand patterns with unparalleled precision. Through analysing historical data, market trends, and even weather patterns, these systems predict inventory requirements in real-time. This optimisation ensures that businesses neither overstock nor understock their products, resulting in significant cost savings and enhanced operational efficiency.
The financial sector has also undergone a remarkable transformation in trading practices through the integration of AI, shifting from traditional trading to AI-driven strategies.
This transition can be seen from the significant move towards the utilisation of AI-powered robo-advisors. Robo-advisors provide a range of automated investment services tailored to individual risk tolerance and financial goals. These systems continuously monitor market conditions and automatically adjust portfolios when they deviate from the pre-set algorithm, helping traders optimise returns while minimising risk exposure.
Furthermore, AI’s real-time ability to analyse social media, news articles, and online forums allows it to gauge public sentiment and opinions about stocks, products, or brands. This invaluable data empowers market analysts to make more informed predictions and decisions.
What’s Overhyped in AI
While the transformative potential and remarkable achievements of AI are undeniable, there are certain aspects that tend to be susceptible to overhype.
Hear more about what’s overhyped or underhyped in AI, from Dr. Ayesha Khanna, an AI entrepreneur and advisor in The Vantage View.
#1 Full autonomy and job replacement
One of the most common, overhyped beliefs is that AI will render human labour obsolete across all industries.
“The fact that people won’t be needed anymore, because AI will be able to practically run organisations itself — there’s nothing further from the truth”
Dr. Ayesha Khanna, AI Entrepreneur and Advisor
While AI can automate many tasks and processes, the notion that it can entirely replace human workers and run organisations without human guidance is often exaggerated.
Most AI systems, particularly those involved in complex decision-making, still require human guidance and supervision.
For example, AI systems in healthcare can assist doctors in diagnosing diseases, but the final diagnosis and treatment often require a doctor’s judgement based on their expertise and the patient’s unique circumstances.
On social media platforms, AI bots are employed to detect and remove inappropriate content. However, humans are often involved in reviewing flagged content to make nuanced decisions, especially when context matters.
#2 Artificial General Intelligence (AGI)
Artificial General Intelligence (AGI) is a theoretical form of AI that aims to achieve human-level cognitive function, including the ability to self-teach. It is often overestimated in terms of its timeline, with many people believing we are on the verge of achieving AGI.
However, not all researchers believe it is even possible to develop an AGI system, and experts in the field emphasise that it remains a challenging and long-term goal, fraught with significant technical and ethical hurdles to overcome.
#3 AI in daily life
The integration of AI into our daily lives has undoubtedly brought about significant advancements and conveniences. However, the expectations surrounding AI applications, particularly in the realm of virtual assistants and self-driving cars, have fallen short of the lofty expectations they initially generated.
The vision of self-driving cars taking over our roads has captured the imagination of the future. Companies like Tesla and Waymo have made substantial strides in autonomous vehicle technology, and while self-driving cars are indeed a reality in some controlled environments, they have not achieved the level of full autonomy initially promised.
High-profile accidents involving self-driving cars have underscored the challenges of navigating complex, real-world traffic scenarios. The timeline for widespread adoption of fully autonomous vehicles remains uncertain, and the initial optimism has given way to a more cautious outlook.
What’s Underhyped in AI
While much attention has been focused on the headline-grabbing feats of AI, there are several areas where the true potential of this technology remains underappreciated, often overshadowed by more widely discussed applications.
“Another area where its underhyped, is the ability to make processes, machines, Internet of Things – intelligent. And areas of smart manufacturing, really take off.”
Dr. Ayesha Khanna, AI Entrepreneur and Advisor
#1 Intelligent Processes and IoT (Internet of Things)
One underhyped facet of AI is its capacity to imbue processes, machines, and the Internet of Things (IoT) with intelligence, evolving AI into ‘smart AI.’
The next frontier in AI involves enhancing our surroundings to be smarter and more efficient. Smart manufacturing, for instance, is a domain where AI is poised to excel. By integrating AI into manufacturing processes, industries can optimise production, reduce downtime, and enhance quality control.
The ability to make machines and IoT devices more intelligent isn’t just a technological advancement; it has the potential to revolutionise entire industries, from manufacturing to agriculture and beyond. This underappreciated transformation promises greater productivity, cost-efficiency, and sustainability.
#2 Cutting-edge Research
Beyond the well-publicised AI milestones, there are hidden gems in cutting-edge AI research that deserve recognition.
One such gem is GPT-3 (Generative Pre-trained Transformer 3), renowned for its remarkable language generation capabilities. GPT-3 can produce coherent and contextually relevant text on an unprecedented scale. Its potential extends beyond generating human-like text; it holds promise for tasks like natural language understanding, content creation, and even assisting in coding tasks.
The Future of AI
From what we’ve witnessed so far, present AI advancements are undoubtedly impressive, but there’s still significant room for improvement and much to look forward to.
While many fear the implications of job displacement due to AI, the reality is quite the opposite.
AI has spurred a demand for new roles and skill sets, with AI engineers, data scientists, machine learning experts, and AI ethicists now in high demand. Furthermore, AI-driven industries like autonomous vehicles and AI in healthcare have given rise to entirely new job categories.
It is also important to recognise the critical importance of reskilling and upskilling programs. These initiatives are essential in aiding workers’ transitions into AI-related roles and equipping them with the necessary skills to remain relevant in an evolving job landscape.
As AI technologies continue to evolve, they will exert an increasingly profound influence on various facets of society. Natural Language Processing (NLP) has undergone substantial growth with the development of models like GPT-3. These models possess the ability to comprehend and generate human-like text, enabling applications such as chatbots, automated content generation, and enhanced language translation services.
“AI’s really cool to someone like me when it brings tangible social impact, and business impact to the bottom line.”
Dr. Ayesha Khanna, AI Entrepreneur and Advisor
Computer vision is advancing at a rapid pace, empowering AI systems to recognise and interpret images and videos. This technology carries far-reaching implications, from bolstering surveillance and security systems to enabling autonomous vehicles and facilitating medical image analysis.
Coupled with the advancement of Deep Learning, AI will be able to automate more complex tasks, revolutionising how businesses engage with customers and grow within the industry.
Ensuring transparency and accountability in AI development is of utmost importance. High-profile cases involving AI decision-making, such as those in autonomous vehicles or criminal sentencing algorithms, have raised questions about accountability for AI-driven actions.
It is imperative to underscore the necessity of fairness and bias mitigation strategies in AI development. Researchers and organizations are actively engaged in creating algorithms that are fair and unbiased while also working towards the development of ethical guidelines for the deployment of AI.
Read more about ethical concerns in AI-driven trading.
While the future of AI holds immense promise, businesses encounter numerous challenges when implementing AI solutions.
Handling vast quantities of data, especially sensitive customer data, necessitates robust privacy measures. The future will require an intensified focus on data privacy and the ethical development of AI. Businesses and policymakers must collaborate to establish clear guidelines and regulations, safeguarding individuals’ privacy and ensuring responsible AI utilisation.
The efficacy of AI models is heavily reliant on the quality of training data. The collection and curation of diverse and representative datasets present a critical challenge. Additionally, mitigating biases inherent in training data is essential to guarantee equitable AI outcomes.
How will you be using AI?
AI’s transformative journey has only just begun.
Its ongoing impact on society, technology, and the global economy promises to be nothing short of revolutionary. With collaboration, adaptability, and a commitment to harnessing AI’s full potential, we can embrace a future where the possibilities of AI are limited only by our imagination.
How will you be using AI in your trading? Follow us on social media @vantagemarkets and let us know in the comments!
- “75 Artificial Intelligence Adoption Statistics [Updated for 2023] – TechReport”. https://techreport.com/statistics/ai-adoption-statistics/. Accessed 19 September 2023.
- “Artificial intelligence (AI) market size worldwide in 2021 with a forecast until 2030(in million U.S. dollars) – Statista”. https://www.statista.com/statistics/1365145/artificial-intelligence-market-size/. Accessed 19 September 2023.