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AI Hype vs. Reality: Insights from EY Consulting Leader
EY leader dishes on AI adoption, Google Gemini 1.5 update, Microsoft Copilot gains traction and more!
Everyday AI
August 28, 2024
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Today in Everyday AI
6 minute read
🎙 Daily Podcast Episode: Every company is investing in AI. So why is the adoption rate so slow? Is AI just hype? We have an expert from global consulting powerhouse EY answer that question. Give it a listen.
🕵️♂️ Fresh Finds: A new AI wearable device, Google Meet’s AI update and why most AI projects fail. Read on for Fresh Finds.
🗞 Byte Sized Daily AI News: Google Gemini 1.5 models update, NVIDIA earning set to cause AI stir and Microsoft Copilot is gaining traction. For that and more, read on for Byte Sized News.
🚀 AI In 5: Google has launched Google Gems, customizable models inspired by Google Gemini. How do they stack up against OpenAI's custom GPTs? See it here
🧠 Learn & Leveraging AI: So is AI just hype? How can you implement it properly? We break down what an EY expert had to say. Keep reading for that!
↩️ Don’t miss out: Did you miss our last newsletter? We talked about Musk backing AI California bill, Alexa AI coming in October and Anthropic releasing system prompts. Check it here!
AI Hype vs. Reality: Insights from EY Consulting Leader 🙌
95% of companies are investing in AI.
Yet, adoption is still low.
So is AI more hype, or is it foundational in the future of work?
We’ll be tackling those questions with one of the world’s largest consulting firms, as EY’s Traci Gusher joins us.
Join the conversation and ask Jordan and Traci questions on AI here.
Also on the pod today:
• AI for Business Growth 🤖
• Importance of Data in AI Implementation 📊
• AI Education and Responsible AI Implementations ❌
It’ll be worth your 31 minutes:
Listen on our site:
Click to listen
Subscribe and listen on your favorite podcast platform
Listen on:
Here’s our favorite AI finds from across the web:
New AI Tool Spotlight – GoMarble is an AI ads analyzer, Storychat is AI-driven conversational platform in a feed format and LockedIn provides fast, accurate forecasting with your Excel Data.
AI Research — Meta researchers released a paper on Transfusion, or how to predict the next token and diffuse images with one multimodal model.
Trending in AI – Plaud AI’s NotePin is a new AI wearable device that has been trending online.
Video Games and AI — Google created a diffusion model that can render video games in real time. Seriously…. it’s impressive.
I remember @nvidia CEO was asked a question about this in a closed-door session earlier this year at GTC.
At the time, it seemed like years away.
Apparently not.
— Jordan Talks Everyday AI (@EverydayAI_)
4:25 PM • Aug 28, 2024
Google - Google Meet now has an automatic AI note-taking tool.
Future of Work – 64% of hiring professionals think you should use AI to improve your resume.
Check This Out – Research shows that 80% of AI projects fail and waste billions of dollars.
AI Updates — Google released Gems, its customized version of its Google Gemini LLM. (We covered it in a video review here)
1. Google’s Gemini 1.5 Revamped AI Models 💪
Google has unveiled its latest Gemini 1.5 models, introducing the Gemini 1.5 Flash-8B and the enhanced Gemini 1.5 Pro, both featuring significant performance improvements for coding and complex prompts.
These new models can process up to 10 million tokens, allowing for advanced long-context reasoning and positioning them as strong competitors in the AI chatbot space.
2. NVIDIA's Earnings Report Set to Cause a Historic Market Shift 📈
Traders are anticipating a staggering $305 billion swing in NVIDIA's (NVDA) shares as the company prepares to release its earnings report, marking the largest expected move in its history. With an impressive 98% projected price fluctuation, the options market is buzzing with activity as investors seek protection against potential sharp movements.
NVIDIA's stock has surged 150% year-to-date, significantly contributing to the overall profitability of the S&P 500.
3. Microsoft's AI Copilot Gains Enterprise Traction 🚀
Microsoft is experiencing significant momentum with its AI-powered Copilot software, boasting a 60% increase in users and doubling daily engagement. Jared Spataro, corporate VP of AI work, noted that major organizations like Disney and Capital Group are saving up to $50 million annually thanks to Copilot's efficiency.
However, there are challenges, as some users have reported issues with scheduling and summarizing tasks, prompting Microsoft to navigate carefully in the competitive AI landscape.
4. xAI Sparks Controversy with Gas Turbines in Memphis 💨
Elon Musk’s AI venture, xAI, is under scrutiny for firing up 18 natural gas turbines in Memphis without the necessary permits, raising eyebrows among environmental advocates. Critics are concerned these turbines could pump an estimated 130 tons of nitrogen oxides into the air, worsening the local smog problem that already gets an “F” from the American Lung Association.
Meanwhile, xAI is trying to power its data center with a whopping 150 megawatts to train its AI models using 100,000 Nvidia processors.
5. Klarna Cuts Workforce Amid AI Advancements ✂️
Klarna is planning to reduce its workforce from 3,800 to just 2,000 employees, citing efficiency gains from artificial intelligence. CEO Sebastian Siemiatkowski claims that the remaining staff will receive higher salaries, but this raises concerns about significant job losses in the evolving tech landscape.
With the IMF warning that AI could affect nearly 40% of jobs and exacerbate inequality, the implications are serious.
6. Scale AI's Layoffs Hit Hard: 1,300 Workers Out the Door 😱
In a surprising development, Scale AI has laid off approximately 1,300 workers, highlighting ongoing challenges in the tech industry. Sources indicate that there was no official announcement from company leadership, leaving many employees without clarity regarding their job status.
Affected workers received a notification from HireArt, the HR vendor, which did little to ease the uncertainty felt by those who believed they were full-time employees.
Google (finally) releases Gems, its version of custom GPTs
About 10 months after OpenAI, Google has finally released its version of a customizable model for consumers.
Hot of the presses, we review Google Gems, bite-sized bespoke versions of Google Gemini’s big model.
Are they any good?
And do they have any advantages over OpenAI’s custom GPTs? We give you the answers.
Check out today's AI in 5.
🦾How You Can Leverage:
Is AI just another passing tech buzzword, or the new backbone of how we work?
If you’re reading this newsletter, you prolly already know the answer.
(Pssst. It’s the latter.)
But don’t take our word for it shorties.
How about the words from an AI leader at one of the largest consulting companies in the world?
Buckle up, because we're diving deep into the AI hype vs. reality conundrum with Traci Gusher, Americas AI, Data and Automation Leader at global consulting powerhouse Ernst & Young.
With a global workforce of over 300,000 spread across more than 100 countries, EY's got a panoramic view of how AI is shaking things up across industries.
Spoiler alert: AI isn't hype.
As Traci said, AI’s been around for decades, as early neural network theories go back to the 1940s.
But the recent Generative AI boom has changed AI’s real-world applications as Large Language Modes have changed how the world works.
It's rewiring work from the ground up, and Traci's here to give us the inside scoop on how to ride this wave like a pro.
Let’s cut through the fluff and discuss not only how AI is more reality vs. hype, but also give you the step-by-step breakdown to make the realization a …. Reality.
Main takeaways coming in 3, 2, 1…..
1 –AI Productivity ≠ business value 💸
Saved time does not always equal more money.
That’s one of the main arguments against Generative AI. After all, there’s no denying that Generative AI saves time.
But what about more money? More business value?
TBH, that’s more of a Change Management and People Management problem vs. a tech implementation problem.
Traci's seen too many companies fall into this trap. They sprinkle some AI fairy dust on existing processes, call it innovation, and hope for moohlah.
Newsflash: not how it works.
The real AI champions? They're asking, "How can AI fundamentally transform our business?" not "How can we use AI to do what we're already doing, but slightly faster?"
Try this:
ROI takes time, y’all.
You can’t plant a seed today and eat the fruit tomorrow.
One of the best takes we’ve heard on the whole AI ROI debate?
From Rajamma Krishnamurthy, a Senior Director of Enterprise AI at Microsoft. In short, she said you have to keep investing in AI and patiently wait for ROI.
2 – Double down on data investment 📊
Here's a mind-bender for ya: Your data department should be as crucial as finance or HR.
Sound crazy?
For every dollar you pour into AI, Traci said companies should be ready to dole out 20 to 40 bucks in data.
Yeah, you read that right.
It's like trying to win a Formula 1 race with a golf cart – AI investments without proper data investments just won't cut it.
And about model and data bias – Traci's got some real talk for you: You can't eliminate it completely. Model and data bias will almost always exist, so don’t let that be a deterrent to GenAI adoption.
(After all, when was the last time a group of humans was 100% perfect and without bias for eternity? Exaaaaclty.)
But with a solid data strategy, you can spot it, manage it, and keep it in check.
Try this:
Want to see real gains of AI and get past the AI-fueled productivity gains?
It starts (and ends) with data.
Elevate your data team to the same status as finance or HR.
Traci said start treating your data like the secret sauce of your company. Build a dedicated data function with wizards embedded in every department. Your AI initiatives will thank you, trust us.
(Oh, what’s that? We covered this specific topic already for ya? YOU GERSH DARN RIGHT WE DID!)
Additional reading: Here’s a great guide on effective data collection 101 for LLMs.
3 – AI = new products and revenue 🛠️
Traci said to forget using AI like a hammer searching for nails.
The true AI visionaries?
They're dreaming up entirely new product lines and revenue streams that weren't even possible before. Traci's seen it in action.
The companies really crushing it with AI are asking, "What groundbreaking business could we create that only AI could make possible?"
It's like when Amazon went from selling books to creating AWS and revolutionizing cloud computing. They didn't just improve their process – they birthed a whole new industry.
Try this:
Speaking of Amazon Web Services, follow their lead.
Amazon CEO Andy Jassy recently said that Amazon is saving 4,500 YEARS of development work and $260 million annually just through AI-powered development.
(How’s that for ROI?)
What’s that, smart reader?
You noticed point number 1 said that saved time does not equal new money?
Exactly.
However, Amazon has been at the forefront of upskilling and reskilling. So be on the lookout for Amazon to be announcing some major new initiatives in the coming quarters and years.
Oh, and we already gave you all of their secrets to upskilling and reskilling anyways, straight from an AWS AI leader.
(Or your fave LLM like Claude, Gemini, Copilot, etc)
Now This …
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