Debating the good, the bad and the ugly about AI at Davos
There is an important topic being discussed at the World Economic Forum in Davos Switzerland. It’s about AI. This year, government officials, company executives, the media, investors and individuals are all seeing the potential growth opportunities and real challenges of how artificial intelligence will change our world. So, let’s take a closer look at how we can use AI to reduce costs, become more efficient and remain safe personally, professionally and as a society.
Most of the debate in Davos is focused on what artificial intelligence means, how it will impact the world, how it will help make them more efficient, improve life, becoming more competitive and cutting edge, and how it will continue to change going forward.Â
That’s one side of the coin. The other side is just as important. We need to remain in control otherwise AI may take us where we do not want to go.
Pull camera back to get longer-term, historical perspective on AI
It is important to focus on the details of individual countries and companies, but it is also important to pull the camera back and get a longer-term, historical perspective of how different sectors of the AI world will continue to transform our world.
AI is both good and bad. It is full of growth opportunity and challenges we need to stay on top of. So, as it develops and moves forward, we need to make sure we remain in control.
While it is true that AI will help good companies and governments do things better and more efficiently, it will also help other companies and governments get off the right and safe path and quite potentially screw things up globally.
This is why we need to keep a sharp focus on both sides of this coin.
Chatbot, ChatGPT, Gemini, Grok, generative AI, conversational AI
I am regularly briefed by companies who want to get on my radar with their breakthroughs. They want me to understand them and talk about what they do to the marketplace.
You see, the AI industry is noisy and chaotic, yet every company needs to be seen and heard.
I am continually amazed at what I learn AI can do today and how it is rapidly progressing. What becomes obvious is that some companies have more control than others. Then again, some companies believe we need to stay in control, while others don’t pay enough attention to this.
Chatbot technology like ChatGPT, Gemini, Grok and more are continuing their rapid growth.
Plus, Generative AI, Conversational AI and more options will continue their rapid growth as well.
How can companies and governments afford exploding AI costs?
Over time I have discovered most players do not really know what is happening today or what is coming next. Yet they are important players in this new space and they are developing this new technology.
Another big challenge faced by the business world is how they can afford AI, which is a rapidly expanding blackhole. Billions are being invested on an ongoing basis.
This creates a rush to invest, without concern about making sure we remain in control.
Every competitor is rapidly investing in this new technology. They are doing this because of fear they will be left behind.
Someday, AI will be everywhere and do everything. The problem today is we are still in the very early stages of this new technology.
Very few have a solid understanding of the direction we are heading in this new and fast-changing world.
AI challenges must focus on privacy, security, employment and more
We need to make sure we know both the good and bad side of the AI coin.
Example, over the past several years, as the minimum wage has increased, companies are looking for new ways to reduce costs.
The more companies pay their workers, the more the company will charge for a Big Mac, and the smaller the portion size will be.
This means we are heading in the wrong direction. This has to do with many factors like employee demands, increases in minimum pay, inflation of products and services, rising costs on everything and so much more.
AI is way to control costs, but also adds a new and major expense
On one hand, AI is a way to better control employment costs. On the other hand, AI is also a new expense, which seems to be a black hole for investment dollars.
The question is, will AI be a new solution or create new problems? The answer looks like it will be both.
New technology that is created to solve a problem, often creates new problems.
Walk into any Walmart, Target or supermarket with self-service cashiers, and while these were thought to save money, are actually creating new problems like increased shoplifting and theft.
Some companies are even starting to move away from automated, and self-service technology and back to real cashiers in many of their locations.
The price paid by companies and consumers with new technologyÂ
Another big problem is what we do as a civilization to combat job loss from lower-level employment which will be eliminated.
We ran into this problem when the horse and buggy whip days disappeared and transforming into the automobile days.
Many workers lost their jobs during this transformation in our economy. We saw this happen in industry after industry as we move forward. Expect more of this during this transition to AI.
AI is full of growth, opportunity and challenge to be aware of
What I am saying is there is always a price to be paid when these kinds of changes are made.
So, while AI may be a holy grail, we must also see and expect the other side.
AI is amazing. AI will improve our lives in many ways. AI will improve the performance and financials of countless companies and governments.
However, AI is also a potential nightmare for companies, governments, workers and consumers with the new challenges it represents.
We need to move forward with AI with our eyes wide open
So, we need to move forward into the new world of AI with our eyes wide open.
We must continue to stay on the path of advancement and improvement, while at the same time staying alert to any problems this new technology is also creating.
Davos is a great place to discuss and debate our world, and the changes we should focus on going forward, for better and for worse.
So, let’s keep debating the pros and cons of both sides of the AI coin to make sure we stay on the successful path going forward.
