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How AI Can Create New Economic Opportunities in Your City

Why Apple isn't paying OpenAI, a new AI video generator, ways AI can create economic opportunities and more!

Outsmart The Future

Today in Everyday AI
7 minute read

🎙 Daily Podcast Episode: AI has been seen as a disruptive force to jobs. But what if we could use AI to help boost local economic development? We have an expert explain how. Give it a listen.

🕵️‍♂️ Fresh Finds: Google VP of Search says they can’t avoid every AI mistake, LinkedIn adds AI features and Adobe employees call out its AI. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: OpenAI reportedly getting unpaid intern treatment from Apple, another Sora video competitor that’s actually publicly available and why an AI candidate is running for parliament in the UK. For that and more, read on for Byte Sized News.

🚀 AI In 5: A new AI video generation has popped up and it’s taken the internet by storm. Could it compete with Sora? We show you how to access it and how it works. Find out here

🧠 Learn & Leveraging AI: AI doesn’t have to be a disruptor to our environment. We’re breaking down how you can leverage AI to actually create economic opportunities in your city. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about AI adoption in orgs., Musk drops OpenAI lawsuit and Apple beating out Microsoft for top spot. Check it here!

How AI Can Create New Economic Opportunities in Your City 🏙

When we think AI and jobs, we think displacement. Like... how many jobs might AI take from us humans?

But what if we start flipping that script a bit?

Why?

If we leverage AI in the right ways, it can actually be a driver for local and regional economic development.

Joining us to discuss is Xiaochen Zhang, the Chief Responsible AI Officer &. Executive Director AI 2030.

Join the conversation and Ask Jordan and Xiaochen questions on AI and economics here.

Also on the pod today:

• Challenges for AI Deployment in Cities 🌇
• AI Adoption Strategy in Business 🏢
• Impact of AI on Employment 🧑‍💻

It’ll be worth your 32 minutes:

Listen on our site:

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Friday, June 14th at 7:30 am CST ⬇️

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Mapify generates mind maps from anything, Search Atlas is an AI SEO tool and TwoShot lets you Create and remix music with AI.

Trending in AI – During a recent meeting, Google’s vice president of search said they “won’t always find everything” with AI mistakes. We feel that.

Future of Work - LinkedIn is rolling out new AI features for job hunting. You gonna try em?

Big Tech – Google is working on adding Gemini to its Google messages app.

AI Startups - Amazon announces that it’ll spend $230 million on generative AI startups.

AI SEO - Yahoo News is adding AI summaries to its homepage. That can’t go wrong, can it? (Ask Google.)

LLMs - Getty Images is partnering with Picsart to create an AI model.

Read This – Adobe employees are calling out the company over some AI controversies.

1. Apple Thinks ChatGPT Exposure is Enough Payment for OpenAI 😳

According to reports, Apple's partnership with OpenAI may involve forgoing direct payments as Apple believes ChatGPT’s exposure via the iPhone is enough payment. Apple is also considering revenue-sharing agreements to monetize ChatGPT services on Apple devices.

So kinda like an unpaid intern?

By taking a cut from AI providers like OpenAI, Apple aims to capitalize on the subscription-based model of ChatGPT Plus, potentially redefining revenue streams in the AI industry.

This unconventional payment approach showcases Apple's strategy to leverage AI capabilities while maximizing profits without traditional monetary transactions.

2. AI Video Generator "Dream Machine" Faces High Demand 🎥

Luma AI's latest innovation, the Dream Machine AI video generation model, has stirred up a storm in the tech world. With the promise of generating 120 frames in just 120 seconds, users are lining up digitally for their turn.

Despite facing major delays due to overwhelming demand, Luma AI's Dream Machine is already being hailed as a game-changer in the AI video generation market.

3. OpenAI Projected to Earn $3.4 Billion in Annual Revenue 🚀

OpenAI’s annual revenue projection has risen to $3.4 billion, primarily driven by its AI products and services on Microsoft Azure, securing its position as a major player in the AI industry. CEO Sam Altman's bold moves and focus on enterprise customers are clearly paying off, propelling OpenAI to the forefront of AI development.

The recent appointment of Sarah Friar, former CEO of Nextdoor Holdings Inc, as the new CFO underscores the company's commitment to strategic growth and financial strength.

4. DeepMind’s Virtual Rat Breakthrough Shakes Up Neuroscience 🐀

DeepMind, in partnership with Harvard University, introduces a cutting-edge virtual rat that mirrors real rodent movements. By training an artificial neural network with precise data from live rats, this digital creature navigates a simulated environment with gravity and other physical forces.

This breakthrough not only enhances our comprehension of how the brain orchestrates movement but also sets the stage for innovative AI simulations.

5. OpenAI Strikes Deal with Oracle For AI Chips 🤝

OpenAI is partnering with Oracle for its AI chips to ramp up the compute capacity for ChatGPT, addressing the pressing need for enhanced infrastructure in the AI domain. OpenAI's CEO, Sam Altman, has been actively seeking additional resources, including discussions on raising funds for an AI chip venture to support the company's expansion.

By leveraging Oracle's cutting-edge chips, OpenAI aims to fortify its scaling efforts and stay ahead in the competitive AI landscape.

6. AI Steve: The Politician of the Future or Just an AI Gimmick? 🇬🇧

In a first, the UK sees its first AI candidate, AI Steve, running for Parliament alongside real-life businessman Steven Endacott. AI Steve, designed by Neural Voice AI and endorsed by Endacott, aims to revolutionize politics with direct democracy and data-driven decision-making.

Endacott's frustration with traditional politics led to the creation of AI Steve, who engages with voters, transcribes conversations, and advocates for policies based on public input.

Luma Labs Dream Machine: OpenAI Sora Competitor?

Is there a new king in the world of AI video creation?

Luma Labs has released Dream Machine and it’s taken the internet by storm.

Claiming to create 120 frames in just 120 seconds, Dream Machine could be the next competitor for OpenAI Sora.

So we decided to pit Luma Labs’ Dream Machine against OpenAI’s Sora in this ultimate AI video showdown!

Or see this related video:

🦾How You Can Leverage:

When we think of the economics of AI, we often think of the negative.

We get it.

That's the natural reaction when there's a new booming technology that we don't fully understand.

But there's another side to the coin - economic opportunities that cities can exploit.

You've just gotta think like a scrappy startup sometimes.

To help us do that, we tapped back into the insights from Xiaochen Zhang, the Chief Responsible AI Officer &. Executive Director AI 2030.

As a leader in the innovation and responsible AI space, he brought the straight fire takes when it comes to using AI.

If you adjust your mentality -- AI implementation can help cities, governments and local leaders create new, improved and economically thriving versions of themselves.

Ready to get it?

Same. 👇

1 – Traditional job security is gone 🧑‍🎨

Yeah, you gotta look at the ‘other’ side of the economic opportunities coin.

Optimism is important, but if you’re going to create NEW economic opportunities, you have to have a realistic point of view.

When talking about AI’s impact, you have to acknowledge the elephant in the room — AI’s gonna take a ton of jobs. 

We talked about this in our ‘Will AI take our jobs’ episode, but you’ve gotta pay attention to what big tech companies are doing in relation to AI.

Just in the first few months of 2024, we saw these companies reduce workforce specifically because of AI: 

  • IBM not filling 7,800 jobs

  • Google laid off hundreds in its sales team

  • UPS cutting 12,000 jobs

  • SAP restructuring 8,000 roles

  • Cisco laying off 4,000 employees

  • Instacart cutting nearly 2,000 jobs

  • Coinbase laying off 20% of its workforce

  • Anthropic laying off 20% of its staff

Try this:

We personally think AI’s economic impact on jobs will be a net-negative. But, that’s just our personal take.

But we’re not all about doom and gloom here.

Because where there’s change, there’s great economic opportunity. 

Xiaochen brought some receipts — talking about the International Monetary Fund and World economic Forum’s findings on job displacement and job creation.

While estimates show 85 million jobs will be lost due to AI, it shows that AI will create 97 million new jobs. 

  • Assess which roles in your organization are most susceptible to AI-driven change.

  • Develop reskilling programs to help employees transition into new, AI-enhanced roles.

And for a deeper dive on AI’s impact on jobs, check out this deeply researched and analytical episode. (Full of hot takes, of course.) 

2 – Cities should use AI like startups — GTM 🎯

How can cities and communities understand AI and actually use it to their advantage?

Xiachen’s advice reflected something that would come out of the boardroom meeting of a rising startup, which is no surprise given he was a global innovation and Go To Market lead at Amazon Web Services. 

Think of your city as a startup.

Xiaochen urged cities to adopt a go-to-market (GTM) strategy for AI, just like a hot new product launch. This means strategic planning, branding, and market analysis—all tailored for AI.

In Massachusetts, for example, they’re not just throwing money at AI. (But yeah, they are looking to invest $100 million in an AI hub.)

They’re building public-private partnerships, much like how a startup secures investors and allies. It’s all about being smart and strategic.

Like a startup bringing something to market, cities need to use a scrappy approach on how to reimagine how their cities operate differently with AI.

Just like businesses do. 

Try this: 

Here’s a bullet-point game plan and starting point for city and community leaders:

  1. Identify Core Problems: What can AI solve in your city? Traffic? Safety? Public services?

  2. Create a Branding Plan: Market your AI initiatives. Show residents and businesses the benefits.

  3. Conduct Market Analysis: Understand local needs and potential impacts of AI.

  4. Align with Strategic Goals: Ensure AI projects support your city’s long-term vision.

  5. Engage Stakeholders: Partner with local businesses and universities to build an AI-friendly ecosystem.

3 – Develop a Competitive Advantage with AI 🧍

Cities are known for certain things, right?

NYC — Finance.

Houston — Energy.

LA — Entertainment.

San Francisco — Technology

Detroit — Automotive

Las Vegas — Hospitality & Gaming

These are identities that can either be transformed or further entrenched with AI innovation.

Xiaochen emphasized that cities need to leverage AI to not only maintain but also enhance their competitive advantages.

Try this:

Identify areas where AI can provide a competitive advantage for your city or business.

Invest in AI research and development, and foster partnerships with tech companies and universities.

Use AI to innovate and differentiate your offerings from competitors.

Take a deep dive in this McKinsey report, which details how AI can be used to create new economic opportunities

Numbers to watch

41%

41% of project management experts reported significant enhancement in project delivery since adopting AI-based tools and techniques for project management.

Now This …

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