World’s leading IT research company Gartner Inc. on Wednesday released its “Hype Cycle for Emerging Technologies, 2023” report, predicting that generative artificial intelligence (AI) is likely to reach transformational benefit within the next two to five years.
Generative AI will have a profound impact on businesses, says Gartner
In the report, Gartner placed generative AI on the top of “Peak of Inflated Expectations” alongside other emerging trends like Cloud Native and AI-Augmented Software Engineering.
Source: Gartner
The Peak of Inflated Expectations is the second phase of Gartner’s Hype Cycle, characterized by an increase in media publicity, enthusiasm, and often unrealistic expectations for emerging technology. This stage essentially aims at discerning between the hype and value of new technologies.
With generative AI positioned at this stage, it means there’s presently media publicity and hype around related tools like Scribe, Jasper, ChatGPT, GitHub Copilot, etc., but also a close observation on whether they will live up to the current hype and expectations.
Gartner believes generative AI, encompassed within the broader theme of emergent AI, will have a profound impact on business and society in the near future.
“The popularity of many new AI techniques will have a profound impact on business and society,” said Arun Chandrasekaran, Distinguished VP Analyst at Gartner. “The massive pretraining and scale of AI foundation models, viral adoption of conversational agents, and the proliferation of generative AI applications are heralding a new wave of workforce productivity and machine creativity.”
Despite enthusiasm around generative AI, the VP Analyst at Gartner, Melissa Davis, noted there are still some reservations about the technology. According to Davis, there is significant uncertainty about how emergent AI as a whole will evolve, considering the technology is still nascent.
“Such embryonic technologies present greater risks for deployment but potentially greater benefits for early adopters,” Davis said.
AI breaks ground in asset management
Finance and asset management are one sector already experiencing the profound impact of emergent AI technology. Earlier this week, Cryptopolitan reported a staggering level of AI adoption in the sector for different use cases, like monitoring asset performance and market trends in real-time.
The trend is evident in the surge of robo-advisors, which are automated, algorithm-driven platforms that offer financial planning services with minimal human intervention. These tools are now able to provide better financial plans to investors, thanks to AI’s predictive prowess.
The annual growth rate of AI in the asset management sector is projected at 245%, which is indicative of a keen interest in technology. However, there has been a growing concern about AI, particularly generative AI, on data security and privacy breaches, which has been pushing the narrative for an outright ban in certain jurisdictions.
A study finding by BlackBerry Limited showed about 93% of organizations in Australia are planning or have banned the use of generative AI applications, including ChatGPT, within their corporate environments. The move was primarily spurred by the to safeguard against potential cybersecurity threats, Cryptopolitan reported.
