Generative AI: What Is It, Tools, Models, Applications and Use Cases

Previous generations of automation technology often had the most impact on occupations with wages falling in the middle of the income distribution. For lower-wage occupations, making a case for work automation is more difficult because the potential benefits of automation compete against a lower cost of human labor. Additionally, some of the tasks performed in lower-wage occupations are technically difficult to automate—for example, manipulating fabric or picking delicate fruits. Some labor economists have observed a “hollowing out of the middle,” and our previous models have suggested that work automation would likely have the biggest midterm impact on lower-middle-income quintiles. Generative AI’s ability to understand and use natural language for a variety of activities and tasks largely explains why automation potential has risen so steeply.

In the process, it could unlock trillions of dollars in value across sectors from banking to life sciences. Generative AI can learn from existing artifacts to generate new, realistic artifacts (at scale) that reflect the characteristics of the training data but don’t repeat it. It can produce a variety of novel content, such as images, video, music, speech, text, software code and product designs. Our latest survey results show changes in the roles that organizations are filling to support their AI ambitions.

Where should I start with generative AI?

Crucially, productivity and quality of service improved most among less-experienced agents, while the AI assistant did not increase—and sometimes decreased—the productivity and quality metrics of more highly skilled agents. This is because AI assistance helped less-experienced agents communicate using techniques similar to those of their higher-skilled counterparts. Today, training foundation models in particular comes at a steep price, given the repetitive nature of the process and the substantial computational resources required to support it. In the beginning of the training process, the model typically produces random results.

Across 91 deals in 2023 so far, the space has already seen $14.1B in equity funding (including $10B to OpenAI). The buzz around generative AI — AI technologies that generate entirely new content, from lines of code to images to human-like speech — is only getting noisier. As organizations begin to set gen AI goals, they’re also developing the need for more gen AI–literate workers. As generative and other applied AI tools begin delivering value to early adopters, the gap between supply and demand for skilled workers remains wide. To stay on top of the talent market, organizations should develop excellent talent management capabilities, delivering rewarding working experiences to the gen AI–literate workers they hire and hope to retain.

Generative AI at work in banking

The role of a generator is to fool the discriminator into accepting that the output is genuine. There are already attempts to use text generation engine’s output as a starting point for copywriters. In our case we did an interview with AI and it sounded really interesting and natural. If you want to see it for yourself, there are web pages with images of people who never existed.

In the lead identification stage of drug development, scientists can use foundation models to automate the preliminary screening of chemicals in the search for those that will produce specific effects on drug targets. To start, thousands of cell cultures are tested and paired with images of the corresponding experiment. Using an off-the-shelf foundation model, researchers can cluster similar images more precisely than they can with traditional models, enabling them to select the most promising chemicals for further analysis during lead optimization. Banks have started to grasp the potential of generative AI in their front lines and in their software activities. Early adopters are harnessing solutions such as ChatGPT as well as industry-specific solutions, primarily for software and knowledge applications. In the banking industry, generative AI has the potential to improve on efficiencies already delivered by artificial intelligence by taking on lower-value tasks in risk management, such as required reporting, monitoring regulatory developments, and collecting data.

Yakov Livshits

Recent Developments:

Our latest research estimates that generative AI could add the equivalent of $2.6 trillion to $4.4 trillion annually across the 63 use cases we analyzed—by comparison, the United Kingdom’s entire GDP in 2021 was $3.1 trillion. This estimate would roughly double if we include the impact of embedding generative AI into software that is currently used for other tasks beyond those use cases. Foundation models have enabled new capabilities and vastly improved existing genrative ai ones across a broad range of modalities, including images, video, audio, and computer code. AI trained on these models can perform several functions; it can classify, edit, summarize, answer questions, and draft new content, among other tasks. Gen AI is a big step forward, but traditional advanced analytics and machine learning continue to account for the lion’s share of task optimization, and they continue to find new applications in a wide variety of sectors.

Documenting code functionality for maintainability (which considers how easily code can be improved) can be completed in half the time, writing new code in nearly half the time, and optimizing existing code (called code refactoring) in nearly two-thirds the time. For most of the technical capabilities shown in this chart, gen AI will perform at a median level of human performance by the end of this decade. And its performance will compete with the top 25 percent of people completing any and all of these tasks before 2040.

Sentiment analysis

The diffusion networks segment is expected to augment the market during the forecast period. Diffusion networks are more popular nowadays for the synthesis and penetration of images. Various industries, such as automotive and transportation, genrative ai media and entertainment, BFSI, etc., require diffusion networks to meet their current business requirements. Government agencies in several countries, such as U.S., Germany, and China, are investing more in the healthcare sector.

• Generative AI techniques, such as image and video generation, can play a crucial role in creating visually stunning and realistic content.
• Generative AI has the potential to revolutionize the entire customer operations function, improving the customer experience and agent productivity through digital self-service and enhancing and augmenting agent skills.
• Roles in prompt engineering have recently emerged, as the need for that skill set rises alongside gen AI adoption, with 7 percent of respondents whose organizations have adopted AI reporting those hires in the past year.
• This is because AI assistance helped less-experienced agents communicate using techniques similar to those of their higher-skilled counterparts.
• BFSI is one of the leading sectors in terms of growth, whereas the media & entertainment sector will lead in terms of revenue.

These organizations that achieve significant value from AI are already using gen AI in more business functions than other organizations do, especially in product and service development and risk and supply chain management. These organizations also are using AI more often than other organizations in risk modeling and for uses within HR such as performance management and organization design and workforce deployment optimization. The generative AI landscape is rapidly evolving due to various developments by leading companies in the field. Nowadays, the leading market players are developing new models, refining existing ones, and introducing innovative techniques to enhance the quality and diversity of generated content.

In developing regions such as Asia-Pacific, the Middle East, and Latin America, there is a lack of awareness of the deployment of generative AI. In underdeveloped and developing countries, many mid and small-scale companies are unaware of generative AI uses. This leads to the underutilization of generative AI, which limits the ROI of its investment. Based on the Model, the global market is segmented into Generative Adversarial Networks or GANs and Transformer-based models. Such strategic developments and advancements started by key players are expected to fuel the growth of the market.