Why your company is struggling to scale up generative AI
Subscribe to enjoy similar stories. For investors concerned that America’s tech giants are making recklessly large bets on generative artificial intelligence (AI), big tech’s latest quarterly results have offered some reassurance. The growth in demand from companies for the cloud services of Amazon, Microsoft and Google was red hot.
Andy Jassy, boss of Amazon, said that AI revenue for Amazon Web Services (AWS) was growing at triple-digit rates—three times faster than AWS itself grew in the early years after it pioneered cloud computing in 2006. Dig deeper, though, and the situation is more nuanced. Generative ai appears to be one of those innovations, such as email or smartphones, whose the most eager early adopters are individuals.
Companies are being far more tentative. In the two years since OpenAi unveiled ChatGPT, generative AI has had a faster rate of adoption than PCs or the internet. Fully 39% of Americans now say they use it, according to a study by Alexander Bick of the Federal Reserve Bank of St Louis and co-authors; 28% say they use it for work, and 11% that they do so every day.
Many of them, though, seem to be secret cyborgs, using the technology at work even as their employers dawdle. Just 5% of American businesses say they are using the technology to produce goods or services, according to a survey by the us Census Bureau. Many companies seem to be suffering from an acute case of pilotitis, dilly-dallying with pilot projects without fully implementing the technology.
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