Year ender 2023- From Generative to Predictive, many faces of AI  

Year ender 2023: From Generative to Predictive, many faces of AI  

While the complete spectrum of AI (artificial intelligence) capabilities is yet to unfold, it is believed that there is a growing conviction within corporate circles, regarding the transformative impact AI can have on businesses. Interestingly, the roll-out of AI initially created lots of scepticism, but industry stakeholders have now warmed up to the idea and its benefits.“ 2023 has seen AI take centre stage in the world of technology. The evolution can be attributed to ChatGPT by OpenAI which made it possible for business leaders, software developers and other professionals to interact with AI and witness the potential of AI,” Pawan Prabhat, co-founder, Shorthills AI, an end-to-end generative AI and data engineering solution provider, told FE-TransformX, adding that as people step into 2024, the AI landscape has transformed from what was once a perpetual work in progress into a readily usable reality.Sign Up to get access to the Financial Express Exclusive and Premium Stories.Register NowAlready have a account? Sign in

In the first quarter of 2023, the total artificial intelligence (AI) startup funding worldwide dropped to $5.4 billion, as per insights from Statista, a market research platform. Furthermore, Alphabet Inc the parent company of Google lost $100 billion in market value on February 9, 2023, after its new chatbot shared inaccurate information in a promotional video and a company event failed to dazzle, as per Reuters’ report. About 30% of businesses reported basic awareness of RAI imperatives without a formal strategy, as per insights from Nasscom. The report also included that large enterprises (with annual revenue of over Rs 250 crore) are 2.3 times more likely than startups and 1.5 times more likely than SMEs to report matured RAI practices.

Reportedly, in 2020, researchers found DeepLocker, a generative AI-based malware, which was used to create unique obfuscation techniques, is making it difficult for security tools to detect and block. Contrary to this the use of generative AI in edtech can revolutionise education. With it education modules can become more interactive and innovative. “Education can be metamorphosed as AI tailors learning experiences. AI-based education models are expected to introduce a world where adaptive platforms can guide students through personalised education modules,” Aman Mittal, vice president, Lovely Professional University, highlighted.

Moreover, deepfake fraud attempts have increased by 31 times in 2023, which is about a 3,000% increase year-on-year, as per insights from Onfido, a digital document verification service provider. The availability of online improved AI tooling is expected to open up new avenues for fraudsters. Experts believe that deepfakes can pose a threat to identity verification. About 26% of smaller and 38% of large companies faced deepfakes fraud with losses amounting to about $480,000, as per insights from Onfido.

Naysayers argue cultural and entertainment businesses can use deepfakes for artistic purposes. For instance, Dalí Museum in St. Petersburg, Florida, created an exhibition called Dalí Lives, where surrealist painter Salvador Dalí. was brought back to life using deepfakes for visitors to interact and take a selfie. Similarly, Samsung’s AI lab in Moscow brought Mona Lisa to life by using Deepfake technology.

Future of AI: From responsible to predictive

To be sure, AI can be used to create many solutions as well as obstacles. For example, Generative AI in the logistics market will reach the $13,948 million mark by 2032 from $412 million at a CAGR of 43.5%, as per insights from McKinsey & Company. The integration of generative AI with Automatic Identification and Data Capture (AIDC) technologies such as barcodes and RFID is expected to enhance supply chain efficiency. “While AIDC provides real-time data capture, generative AI processes this data to make intelligent decisions. The collaboration can improve accuracy, reduce error and ensure seamless tracking and traceability throughout the supply chain, among others,” JP Mishra, country manager, India, Newland AIDC, an auto-identification service provider, highlighted.

Industry experts opine that contrary to popular belief predictive AI can be the new threat detection module. The rise in cyber threats seems to have compelled enterprises to use predictive AI models that assign risk scores to transactions, enabling threat response through machine learning. AI-based fraud protection strategy can monitor transactions and adapt evolving fraud patterns, processing vast datasets with multiple variables to identify intricate correlations. “ While predictive AI is enabling the retail and hospitality sector to analyse customer needs, generative AI can revolutionise content development and code generation. Furthermore, AI-integrated audio video analytics is expanding the horizons of the imaging industry,” Atul Rai, CEO, co-founder, Staqu Technologies, an AI-based video analytics software, said.

Moreover, Responsible AI is expected to revolutionise credit assessments in pursuit of responsible lending practices. Traditional credit scoring might struggle with the intricate nuances of individual financial situations. Responsible AI can transcend these limitations by processing diverse data sets and considering factors for a more nuanced evaluation. This shift towards accurate credit assessments can potentially contribute to the development of a responsible lending ecosystem. “ Financial institutions can leverage AI for fraud detection, risk assessment, and algorithmic trading. However, challenges persist in adopting AI as the relevance and applicability of specific AI solutions may not be established. Businesses need to put in effort to align and integrate AI with their enterprise architecture and identify the right applications,” Manish Godha, founder and CEO, Advaiya, a digital transformation service provider, concluded.

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