ChatGPT is the best-known Generative Artificial Intelligence (GAI) application, but it is not the only one. We have been talking about AI for many years, but the generative qualification is the novelty compared to the past.
The AI we knew before ChatGPT was designed to recognize and classify existing data. Generative algorithms are designed to generate new data based on a set of rules. We are not dealing with programmed but “trained” software; therefore, in a sense, more creative. In fact, GPT stands precisely for Generative Pre-trained Transformer (where pre-trained underlines the fact that it is trained, not programmed to do certain things). The IAG is a real game changer.
From a technical point of view, the argument is obviously more complex.
AND WHERE DID THE METAVERSE GO?
The GAI does not appear to be a flash in the pan as it instead seems to be with the Metaverse. A few days ago, the financial paper Il Sole 24 Ore (dated 16 May) noted that the price of virtual lands on Decentraland collapsed by 90%. Biagio Simonetta writes: “…it was only October 2021 when Mark Zuckerberg changed the name of his holding company to Meta; but it already seems prehistory. As soon as we discovered the GAI, the fate of the Metaverse seems sealed and risks ending up in the long list of technological flops. An example: Walt Disney shut down the division that was developing its strategies for the Metaverse.
And if the metaverse lasted less than two years, ChatGPT can be held primarily responsible for this flop. Its success lies in the fact that it is more immediately understandable, easy to use and that it is – for now – freely accessible. ChatGPT is also able to generate a text similar to that written by a human being, making interaction very easy.
The first real world environment where the algorithms were tested is the game of chess. All possible moves were loaded into the program and in 1997 the world champion Garry Kasparov was beaten by a machine. This is where we started talking about AI.
But the GAI, as mentioned, is another story. It simulates human intelligence, processes large amounts of data and calculations and is trained, for example, in making decisions. Walmart is outsourcing purchasing management to these generative algorithms that will conduct purchasing negotiations with suppliers. There is also the recent news that IBM suspended hiring for roles that can be substituted with the GAI: we are talking about 7,800 employees with back-office functions, human resources and customer service.
MARKETING WILL ALSO CHANGE
The GAI as a generalist is also specializing itself. Two months ago, news broke that Bloomberg is developing BloomberGPT, which is trained in finance.
But GAI is also capable of generating images, texts, videos, music, ads, landing pages, etc. And therefore, marketing will also be steamrolled. And not just the function of operational marketing; even the strategic one.
But let ChatGPT answer for itself.
Question: what new strategic and operational marketing tools is Artificial Intelligence bringing?
Answer from ChatGPT:
- Data analysis and forecasting: The GAI is able to analyze huge amounts of data in real time and provide predictions on consumer behaviour. This allows you to create more targeted and personalized marketing strategies.
- Personalization of content: AI allows you to create personalized content for each individual customer based on their preferences and behaviors. This increases engagement and the likelihood of conversion.
- Automation of marketing processes: AI can automate some marketing activities, such as sending personalized emails, social media management and customer segmentation.
- Chatbots and virtual assistants: AI allows companies to create chatbots and virtual assistants that can answer customer questions in an automatic and personalized way.
- Sentiment detection: AI is able to analyze user sentiment on social media and company websites, providing valuable insights into customers’ opinions and areas for improvement.
At this moment the GAI is in an evolutionary phase, and it is difficult to imagine what the developments and practical implications will be. I imagine it will be like having a specialized consultant always by our side.
But what role will people play then? I think it will be to contextualize what the AIG will tell us. In other words, we will have to use our emotional intelligence – which for now the GAI does not have – to direct/correct the outputs and decisions that the GAI makes.
The purpose of the musings I have just made is not to address the ethical aspects that the GAI opens. I’m just saying that all technological innovations have always been used for both noble and less noble activities. The problem is not the tool, but the use we make of it and will make of it.