The last couple of weeks got investors worried about the future of the artificial intelligence (AI) trend… Would it keep gaining momentum? Has it reached its peak?
Investors were in doubt, as one of the leading AI companies recently faced an internal crisis.
OpenAI, the most well-known AI player, has part of its board going against the CEO, Sam Altman.
It was an unprecedented move that got markets worried.
The board of OpenAI fired Sam Altman for reasons that aren’t still completely clear.
He was then quickly reinstated to its position with the support of Microsoft as a major investor.
After all, Microsoft supported OpenAI with billions of dollars. It has a lot of sway over what’s going on at OpenAI.
While the company stays laser-focused on AI tech, its further development scenario has been uncertain for a brief moment.
Investors don’t like uncertainty… they see it as a risk.
After the departure of anti-Altman directors, OpenAI enhanced its board with:
- Bret Taylor, who was Twitter’s chairman before it was sold to Elon Musk. Mr. Taylor is a current board member of the e-commerce platform Shopify and former co-CEO of Salesforce.
- An ex-Treasury secretary and president of Harvard University, Larry Summers.
- Adam D’Angelo, previous board member of the company and current CEO of the Quora platform.
The new super-star board is well-aligned with the management team. It could speed up the development process at OpenAI.
The Global Economy Needs AI
According to the latest annual McKinsey Global Survey, one-third of the respondents use AI tools in their daily tasks; this applies to 25% of executives. Moreover, 40% of the surveyed said their company plans to increase investment in AI tools.
The most recent data says that regular use for work is still relatively infrequent, ranging from 5% to 14%, depending on the industry. On top of that, somewhere between 37% and 50% of workers tried AI tools at least once.
It is clear that AI tech is getting mass adoption. But it’s still in the early stages and is not ready to completely take over the workforce.
So far, the most common use of AI tools is marketing and product development. This is where various companies found AI tools to be the most helpful.
However, the biggest concerns for AI are inaccuracy and security.
This is what AI developers are focused on these days: improving the algorithms.
Artificial intelligence still has room to grow and improve. It will see higher adoption rates when it becomes safer and more reliable. For now, it’s a helpful tool that improves operations to a degree, but it is not yet a substitute for a human worker in most cases.
Its time is yet to come.
We believe the companies leading the AI space will benefit the most over the next months and years. The trend continues, and it will offer more investment opportunities this year and in 2024.
Thank you for your loyal readership,
The Financial Star team