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    HBR IdeaCast

    How Generative AI Changes Productivity

    Thu May 04 2023

    The cost of information dissemination and the implications of generative AI

    00:02 - 10:43

    • The cost of information dissemination went to zero with the invention of the web browser.
    • Generative AI has profound implications for us, as it will massively decline the cost of cognition and creativity.
    • Generative AI is taking a corpus of text and making predictions based on all human text available in the world.
    • Generative AI is basic predicting what the next pixel should be.
    • Generative AI systems predict the next word or pixel based on a corpus of text or images.
    • OpenAI's big innovation was to bring in human feedback through reinforcement learning.
    • The combination of data, compute, and prediction has given us powerful generative AI systems.

    Applications of generative AI in various fields

    05:37 - 26:14

    • These systems can pass medical boards, bar exams, and job applications.
    • Machines with humans will replace humans without machines.
    • The copilot metaphor is useful for understanding the relationship between humans and AI.
    • AI can make our jobs easier and help us do what we do better.
    • AI technology makes everyone as good as the AI, bringing up the quality level.
    • Training systems and curriculum need to change with the introduction of AI technology.
    • Chat GPT and Bing Abing's are examples of AI technology that can be used for writing assistance.
    • Hallucination is a common issue with generative models like Chat GPT.
    • Autopilot should not be relied on when using AI technology.
    • Edge cases can cause performance drops even with good AI, so attention must be paid to what's going on.
    • Accountants, lawyers, consultants, and other knowledge workers can benefit from using AI technology.
    • Generative AI can be used by accountants, lawyers, consultants and other knowledge workers to analyze data and do analysis conversationally.
    • Legal assistants can use generative AI to access all legal documents in the world instantly and customize it to their particular circumstance.
    • Individual worker productivity is phenomenal with generative AI.
    • Generative AI is already being used for mundane tasks like responding to emails, doing spreadsheet analysis, doing textual analysis, doing summaries and creating beautiful summaries of Zoom calls.
    • Generative AI can help improve low-end customer service calls through augmentation scenario or automation scenario where the first level triage is happening through generative AI.
    • Generative AI can streamline administrative tasks, scheduling and task management.
    • HR leaders can use generative AI to identify skills gaps and suggest new training.
    • Marketing has been transformed by generative AI with personalized pitches and press releases.
    • Generative AI can increase efficiency and productivity in factories through quality control and process automation.

    The importance of digitization and embracing generative AI

    25:44 - 31:32

    • Digitization is imperative for companies to benefit from generative AI.
    • Digitization imperative increases productivity in factories.
    • Building AI factory and data pipelines is necessary for benefiting from AI.
    • Generative AI can improve firm productivity by rethinking processes and business models.
    • Companies must embrace generative AI at the IT architecture and organizational level.
    • Individuals can use generative AI to boost productivity, but the promise is really scale.
    • The big learning mandate here is for boards, C-suite, and the rest of the cream.

    Enabling workers and reimagining work with generative AI

    31:10 - 37:02

    • The question is what will accountants do with the productivity boost?
    • Companies should not just fire accountants but enable them to do higher level work.
    • When ATMs were introduced, bank tellers became financial advisors.
    • Leaders need to think about enabling their teams rather than just cutting costs.
    • Removing boundaries on human capability could lead to a purpose-driven approach to work.
    • Organizational leaders should immerse themselves in the tools and start reimagining work in their functions and organizations.
    • There will be transition and upheaval, but some leaders will focus on growth while others focus on efficiency.
    • Hundreds of companies are trying to improve performance through AI.

    Other insights on generative AI

    36:47 - 39:09

    • There are hundreds of companies trying to improve AI performance.
    • Abundance thinking is encouraged instead of efficiency thinking.
    • Kareem Lakhani, a professor at Harvard Business School, co-wrote the book 'Competing in the Age of AI'.
    • Next time on HBR ideacast feed, Adi Ignatius talks about how generative AI changes creativity.
    • 'How Generative AI Changes Everything' is a special series of the HBR ideacast.
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