Artificial Intelligence and its boom over the past year or so have resulted in discourses of various kinds and types. Apart from the ostensible benefits of the technology, many such conversations have often circled around the imminent and distant threats that this technological advancement poses to the human race.
Companies Concerned About AI
In the immediate sense, more than AI taking control of humankind and controlling human minds, it is the prospect of AI depleting myriad avenues of employment and competitiveness that has acquired many spaces of discussion.
According to a report from the Financial Times, more than half of the elite Fortune 500 companies see AI as a risk factor in their business. Previously, many professionals and organisations that represent them had expressed concerns about AI bringing about disruption in many professions.
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According to the report, in a study conducted by Arize AI, an AI company, about 56 per cent of Fortune 500 companies cited AI as a 'risk factor.' |
Now it appears that even corporations have started seeing the dark side of AI.
According to the report, in a study conducted by Arize AI, an AI company, about 56 per cent of Fortune 500 companies cited AI as a 'risk factor.' This is an astronomical rise from a meagre 9 per cent in 2022.
In their annual reports, these organisations mentioned cost savings, operational advantages, and increased innovation as potential benefits of the AI surge.
The annual financial report from Fortune 500 businesses highlighted increased competition as one of the AI concerns. Many of these businesses worry they might not be able to keep up with competitors that are more adept at using the technology.
One such recent example is that of Netflix. The streaming giant that is expected to deploy AI in the business is said to have an unmissable edge over its competitors. |
One such recent example is that of Netflix. The streaming giant that is expected to deploy AI in the business is said to have an unmissable edge over its competitors.
AI's Losing Momentum
Big corporations, therefore, are at an advantage, given the extensive resources required to sustain themselves in the AI race.
However, it also needs to be noted that the said investment may or may not keep the momentum that it has had so far. Already, there is a bit of a slowdown in the sector, as witnessed in the recent quarterly results of the second quarter. Here, companies at the forefront of the 'AI power show' have seen their prospects decline.
Even hedge funders like Elliot have stated that companies like Nvidia are in what is deemed to be a 'bubbleland'. |
This has induced fears in the minds of some investors. It has forced these investors to consider the salience of AI and its potential to be the revolutionary tech that it is touted to be. Some have deemed the current growth to be fragile. Even hedge funders like Elliot have stated that companies like Nvidia are in what is deemed to be a 'bubbleland'.
Therefore, it remains to be seen whether this apparent slowdown in the inflow of investment in the sector will assuage the fears of companies and professionals alike.
