Introduction
In the past couple of years, we have seen a phenomenal rise of artificial intelligence (AI), with a focus on lifelike generative models. With the gradual progress made in the fields machine learning (ML) algorithm development and deep learning (DL) techniques, we can now finally reap the benefits of generative artificial intelligence (GAI). Top business leaders such as Bill Gates and Elon Musk has talked about the benefits of GAI in reshaping our work and daily lives, but how? Today, in this article, we will explore what generative AI is and find out how it impacts businesses.
What is Generative AI?
Generative AI is a technology that offers the ability to generate a range of content including images, video, audio, and text. The creation journey dates back to 1960, with the introduction of generative adversarial networks (GANs) and large language models (LLMs) which marked the significant rise of GAI. The most common use cases of GAI are seen in text-generative AI models and text-to-image-generative AI models.
Text Generative AI Model: One of the most advanced text-generating models that we have now is “ChatGPT,” which can produce human-like answers. Since it was first released on November 30, 2022, it has taken a storm. Within a week, it hit a million milestones, and by now, more than 100 million people use AI. ChatGPT can effectively handle tasks related to creative writing, essays, content summarization, and coding-related stuff. Per a recent survey conducted in the US, it turns out that almost half of the companies are using ChatGPT, and 93% are still planning to expand the use of ChatGPT.
Thus, ChatGPT can provide tremendous help for businesses, especially those that have e-commerce. By using chatbots as their automated services, they handle customer queries effectively. Chatbots are instantaneous with their prompt answers, quickly search for the information that customers need, and provide faster services than their human counterparts. Also, it can run and be accessed 24/7 without any difficulties or hassle. Simultaneously, it can take care of emails, presentations, and search engine optimization for businesses. Therefore, using automated service businesses can greatly reduce costs while streamlining the customer experience.
Text-to-Image Generative AI Model: This type of model is similar to text-generative models, but their database consists of only images, not text. But still, the model requires some additional text data to comprehend the text inputs to generate the image form. Although this model can generate images, its images are still similar to the style and content of the images that are present in their training dataset. Some of the prominent text-to-image generative AI models that are used today are Vector Quantized Generative Adversarial Network (VQGAN), Contrastive Language-Image Pre-Training (CLIP), and Stable Diffusion.
Pros and Cons of Generative AI
| Pros | Cons | Creative Solutions for Business: It is an extremely beneficial tool for generating innovative ideas and creative solutions such as creating logos, out-of-the-box product ideas, and crafting personalized messages that resonate with customers. | Biased and incomplete data: Generative AI fully depends on its training data. Due to this, it sometimes generates incomplete and false answers. This can harm the trustworthiness of businesses; thus, it is required for businesses to ensure the integrity and representativeness of their training datasets. |
|---|---|
| Valuable Insight: We can swear by Generative AI’s insights and predictions. It uses historical data to analyze and make accurate predictions. Businesses can effectively use it to opt for their strategies, predict demand, recognize trends, and make impactful decisions. This overall improves efficiency. | Requires Expertise: When it comes to using Generative AI in your business, one must have profound knowledge and expertise in AI. Because training, implementing the necessary infrastructure, and maintaining data security can be complex and challenging. |
| Automates Various Tasks: GAI will minimize time and manual creation work. Especially in supply chain management and manufacturing. This saves valuable time and costs with a focus on quality work. | Misinformation and Privacy Concern: GAI can have an unprecedented problem regarding copyright problems and ethical questions regarding privacy and misinformation. Nowadays, we can see many malicious uses, such as deep fakes of many prominent stars and common individuals. Therefore, when leveraging this GAI, businesses should carefully navigate these threats. |
| Utmost Customer Satisfaction: It will only take more than 5 minutes for GAI to analyze extensive data. In order to understand the performance and behaviors of a customer, businesses can leverage GAI to personalize their products or services. By doing so, not only customer experiences will improve, but the satisfaction of customers can lead to business growth. | Poses Challenges: Although GAI can provide limitless creative possibilities, there are challenges in maintaining the generated content. Not all the AI model-generated answers are right. In most cases, it gives unexpected or undesirable outputs that need human intervention or verification. |
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How Does Generative AI Impact Businesses?
According to the study by McKinsey Analysis, chatbots have the potential to replace more than 20% of customer service representatives. Chatbots are not yet at that level of advancement where they can solely handle all customer service inquiries, especially in some areas that need a sort of specialization. Nevertheless, it can still reduce enormous response times by an average of three times more than their human counterparts. During this time, human agents can get enough time to serve customers with more specific issues. This shows businesses can have chatbots as effective agents to handle their customers with the utmost service for inquiries. The following are some of the positive impacts of Generative AI business.
Effectively Generates Sales: Chatbots are useful for businesses, especially for boosting sales. These chatbots can analyze customers’ interests and habits, and out of this, they can create personalized offers based on customer interests. Businesses are including this chatbot for sales purposes, according to the research data from Intercom. Support chatbots are slightly behind at 37%; 17% of bots are pretty much used in marketing. The remaining 5% are unspecified use cases. Ultimately, these chatbots have incredible potential to drive sales, with an average of 67%.
Promote Branding: Generative AI can be a beneficial tool for companies that want to promote their branding with cool and innovative ideas. Businesses can also leverage this generative AI for brand content creation, scriptwriting for advertising, crafting engaging product descriptions, social media posts, and many more. Images are the most important thing for branding, using generational AI text-to-image models to create realistic images of products and logos.
A Great Tool for SEO: For those businesses that want to maintain their online presence, generative AI can be a beneficial tool. It can effectively maintain your SEO organic ranking through keyword research, automating technical parts of the SEO process, creating static XML sitemaps, and creating new title and description tags.
Perfect for Marketing: Generative AI’s ability to analyze data and get innovative ideas from it. Moreover, it can generate ideas, generate concept art, create images, and automate sluggish tasks like filtering out multiple texts like customer reviews. Using it as a marketing tool will also reduce the overall time required to find the most compatible solution.
Does Generative AI pose a threat to businesses?
A recent survey conducted by Cisco across 12 countries revealed that more than one in four organizations have prohibited the use of Gen AI due to concerns related to privacy and data security risks. The primary apprehensions revolve around the potential threats posed to an organization’s legal and Intellectual Property Rights, as well as the risk of public information disclosure.
According to Harvey Jang, Vice President and Chief Privacy Officer at Cisco, privacy plays a critical role in fostering customer trust and loyalty. This underscores the importance of addressing privacy concerns associated with Gen AI implementation.
These vulnerabilities are particularly accentuated within the financial sector. The survey also highlights that aside from the risks of financial fraud, Gen AI may introduce solvency and liquidity risks to financial institutions.
Experts emphasize the necessity for financial institutions to meticulously evaluate and mitigate these risks to ensure the responsible and secure integration of Gen AI into their operations.
In Conclusion
Generative AI models are one of the most groundbreaking advancements in human history. It has now become an integral part of businesses in every sector. Among the major benefits businesses can reap are a reduction in labor costs, a minimum amount of time spent on creating new content or analyzing existing data, the ability to handle mundane tasks with automated tasks, and customer service. But generative AI also leads to privacy and data safety concerns. So, leveraging it wisely is the need of the hour.
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FAQs
Generative AI is mostly used in scientific research and health care to conduct research and aid in diagnosis. Besides, it is widely used by the entertainment industry, government, education, climate science, and automotive industries.
It is used to generate any kind of marketing copy for job descriptions for the company. Also, used to scrutinize the text and turn out into detailed social listening. Apart from that, it can be used for data entry, analyzing large datasets, tracking customer queries, and writing software.
Businesses can reap the following benefits by using generative AI:
- Increase labor productivity with low costs.
- Provide automatic, personalized customer experience
- Speed up the R&D process through innovative design ideas.
Some of the prominent real-life examples of generative AI are content creation, image generation, personalized content creation for social media, feeding standard messages to chatbots, and virtual assistants.
Although generative offers various advantages to businesses of all sorts, there are some challenges that they may encounter, like ethical concerns, biased data, copyright concerns, false information, and security concerns.
