stub 2023 Was A Breakout Year for AI - What Can We Expect Looking Forward? - Securities.io
Connect with us

Artificial Intelligence

2023 Was A Breakout Year for AI – What Can We Expect Looking Forward?

mm

Published

 on

Securities.io is not an investment adviser, and this does not constitute investment advice, financial advice, or trading advice. Securities.io does not recommend that any security should be bought, sold, or held by you. Conduct your own due diligence and consult a financial adviser before making any investment decisions.

AI in 2023

The worldwide relevance of artificial intelligence, known by its acronym AI, is evident in front of us through numbers. And these numbers only show us that 2023 is the real inflection point in the growth trajectory of AI. It is the year from which AI will take off at a never-seen-before exponential speed. 

Some estimates suggest that the worldwide AI market will grow at a CAGR of more than 37% between 2023 and 2030. To elaborate as to how impactful AI's contribution in the future could be, 

PricewaterhouseCoopers estimates suggest that AI will contribute nearly US$16 trillion to the global economy by 2030, which would be more than the current output of India and China combined. It will positively impact labor productivity and help achieve enhanced levels of personalization, save time, and improve quality. 

It will benefit all parts of the globe. However, some regions will gain more than others. China may receive a 26% rise in GDP in 2030, followed by North America (14.5% boost), Southern Europe (11.5% boost), and the developed parts of Asia (10.4% boost). 

This magnificent rise of AI stems from and thrives on the innovations that this field has achieved over the past few years. We will look at some such breakout innovations in AI in the following segments.

ChatGPT by OpenAI

ChatGPT by OpenAI has probably been the most well-known AI product of 2023. It has helped fuel the imagination of ordinary people and freed the perception of AI from being thought of as something to be used only in technology-intensive workspaces and application scenarios. 

OpenAI, the entity behind developing ChatGPT, wants Artificial General Intelligence or AGI – a paradigm of AI systems that will be smarter than humans – to benefit humanity. ChatGPT is only the beginning of that journey. 

At its core, ChatGPT is a form of generative AI that can serve many purposes in a human-like fashion. As a chatbot, it leverages natural language processing techniques to come up with human-like conversational responses. It can respond to questions, compose elaborate written content, and offer images, text, or videos in response to text-based user prompts, which are similar to queries we input in a search engine. 

The acronym GPT stands for Generative Pre-Trained Transformer since the application has been trained with reinforcement learning through human feedback.

According to the latest available data, ChatGPT has more than 180 million users, while the website generated 1.7 billion visits in October 2023. 

While Netflix took around three and a half years to reach one million subscribers and Instagram had to wait nearly 2.5 months to acquire the same traffic, ChatGPT acquired 1 million subscribers within its first five days. 

According to the latest available information published in the last week of December 2023, Open AI was in preliminary discussions for a fresh funding round that could take the valuation of the company to US$100 billion, making it the second-most valuable US startup behind SpaceX. The company was also in talks with G42 for a billion-dollar investment in its Chip Venture. 

While speaking to TIME Magazine about AI's potential, Sam Altman, the CEO of OpenAI, said, “I think AGI will be the most powerful technology humanity has yet invented.” He specifically stressed AI's capabilities in democratizing access to information globally. 

Multiple LifeSaving Medical Inventions

While ChatGPT has helped AI gain massive traction, its revolutionary impacts have been realized by the medical field with greater intensity in 2023. AI has found its use in disease detection and diagnosis, personalized disease treatment, medical imaging, efficient clinical trials, drug development, and more such application areas. 

It has helped make patient care a more informed practice with reduced scope for errors. It has also helped reduce the costs of care by introducing customized virtual health assistance and preventing the process through which a healthcare system interacts with a patient. 

RETFound

In mid-September 2023, a group of medical AI researchers published about RETFound. They defined it as the:

“Foundation model for retinal images that learns generalizable representations from unlabelled retinal images and provides a basis for label-efficient model adaptation in several applications.” 

Trained on 1.6 million unlabeled retinal images, the RETFound can diagnose and predict eye diseases and systemic disorders such as heart failure and myocardial infarction. 

AI Better than Biopsy in Cancer Detection

In October 2023, researchers in the United Kingdom found that an AI algorithm could do better than a biopsy at grading the aggressiveness of the sarcomas. 

Sarcomas is a rare form of cancer that grows in our connective tissues, including fat, muscle, and nerves. The technology could grade the aggressiveness of the tumor accurately up to 82% of the time, a significant improvement to biopsies that were accurate 44% of the time. 

The tool also successfully differentiated between leiomyosarcoma and liposarcoma in 84% of the cases, while radiologists could correctly ascertain in 65% of cases. 

Christina Messiosu, the consultant radiologist at the Royal Marsden and professor in imaging for personalized oncology at the ICR, said:

“In the future, this approach may help characterize other types of cancer, not just retroperitoneal sarcoma. Our novel approach used features specific to this disease, but by refining the algorithm, this technology could one day improve the outcomes of thousands of patients each year.”

IBM Bringing Cutting-Edge AI to Healthcare

One of the tech giants involved in Healthcare AI is IBM. Its WatsonX Assistant AI healthcare chatbots can help skilled medical professionals efficiently focus on the core problem while helping patients – on the other side of the spectrum – to get a fast and stress-free healthcare experience. It was in 2023 that IBM announced the WatsonX platform. 

At a functional level, the platform can help partners train, tune, and distribute models with generative AI and machine learning capabilities. In short, it can manage the life cycle of foundational models that serve as the basis of generative AI. 

finviz dynamic chart for  IBM

For the third quarter of 2023, IBM registered a revenue of US$14.8 billion, up 3.5 percent at constant currency. The gross profit margin was 54.4 percent (GAAP), up 1.7 percent. 

Overall, by the middle of 2023, 692 AI devices had received approval from the United States Food and Drug Administration for clinical use, a 33% increase from 2022. 

The achievements of AI were so significant in 2023 that Matt Mohebbi, the head of AI and research at Brightside Health in New York, not only termed the year a ‘blockbuster' but went on to say that the: 

“Clinicians who embrace these technologies will very likely replace the clinicians who don't.”

Click here to learn about the growing synergy between AI and neuroscience. 

AI Breakthroughs in Automotive

Another industry space where AI scored significantly well in 2023 was the automotive industry. The automotive industry leveraged a range of AI capabilities to improve their safety standards, efficiency, and autonomous driving standards. These capabilities included machine learning, natural language processing, and computer vision. 

One of the most revolutionizing impacts of AI in the automotive industry was in the form of Advanced Driver Assistance Systems or ADAS. ADAS features thrived on AI. AI algorithms and sensors helped monitor the vehicle's surroundings and identify potential dangers so that drivers could move and park their cars with minimized risk of collisions. 

AI-powered predictive analytics also helped in vehicle maintenance. The AI algorithms could identify patterns and anomalies to predict potential failure or breakdowns.

AI also helped sellers and dealers to offer a better customer experience with personalized driving features and voice assistants that could adjust the vehicle temperature, inform the driver about fuel or gas levels, make calls, and even change radio stations. 

Apart from improving in-vehicle safety and customer experience, AI also benefited the automotive manufacturing industry. It helped consolidate the supply chain and bring more efficiency to it by introducing robotics and automation. It also helped in quality control and defect detection. 

The automotive design and development sectors leveraged AI's capabilities, such as generative design and optimization features, simulation and virtual testing, and rapid prototyping and iterative development. 

AI and Robotics in Automotive by Tesla

One of the major players in deploying AI in the automotive industry has been Tesla. Tesla has not only kept innovating but also managed to achieve scale with those innovations. 

By the end of 2023, the AI and Robotics portfolio of Tesla included Tesla Bot, FSD Chip, Dojo Chip and Dojo System, Neural Networks, Autonomy Algorithms, Code Foundations, Evaluation Infrastructure, and much more. 

The company, for instance, has built AI inference chips to run its self-driving software. It has built AI training chips to power its Dojo System, from the silicon firmware interfaces to the high-level software APIs meant to control it. 

According to Ashok Elluswamy, the director of Autopilot Software at Tesla: 

“Tesla cars running the FSD (Full Self Driving) software – which currently numbers about 400,000 customers – will be able to make more intelligent self-driving decisions with the hardware upgrades, which will improve the company's overall AI capabilities.”

Currently, the company has an AI system that can gather real-time visual data from eight cameras to produce a 3D output to identify and help make decisions on overcoming obstacles, controlling and optimizing vehicle motion, effective driving through lanes and roads, responding to traffic lights, and more. 

The company, at present, banks on its AI system powered by 14,000 GPUs in its data center that can tap into 30 petabytes of video cache. Soon, it will grow to 200 petabytes, an enormous support of processing power and storage. 

Its innovations and the capability to be in sync with the latest technologies have helped Tesla see consistent growth in revenue earned over the last three consecutive years. In FY 2022, FY 2021, and FY 2020, Tesla earned revenues of more than US$67 billion, 44 billion, and 24 billion, respectively. 

finviz dynamic chart for  TSLA

While companies like Open AI, Tesla, IBM, and many more such companies and research institutions have broadened the horizon for AI in a big way, the road ahead looks even more promising and exciting. 

What Can We Expect Looking Forward to?

Artificial Intelligence will revolutionize many fields. It is better to say that there won't be any area of application shortly that would not leverage the benefits of AI. Research and development efforts towards AI have increased significantly over the past few years. 

According to the Artificial Intelligence Index Report 2023, published by Stanford University's Human-Centered Artificial Intelligence (HAI) Center, the number of AI research collaborations between the United States and China has increased nearly four times since 2010. The total number of AI publications has more than doubled during the same period. 

Increased volume of research will open up many new frontiers for AI to succeed shortly. 

Image Generation: Google Imagen 2

In mid-December 2023, Google made it public that they were making the next generation of Imagen. 

Shortly, Imagen will alter the field of visual representation radically by helping to create emblems, letter marks, and abstract logos and also facilitating their overlaying onto products, clothing, business cards, and other surfaces. It will surpass Amazon's Titan Image Generator by rendering text in multiple languages, including Chinese, Hindi, Japanese, Korean, Portuguese, English, and Spanish, with more to come in 2024. 

“If you want to create images with a text overlay — for example, advertising — you can do that.” 

– Google Cloud CEO Thomas Kurian said while elaborating on the benefits of the latest version of Imagen 

It will expedite the pace and help save costs in many industries, including advertising, designing, printing, packaging, and much more. 

AI In Education: More Solutions like Gradescope

Generative AI solutions like ChatGPT have already altered the traditional patterns of disseminating and receiving knowledge. In the future, more changes will come. 

The United States Office of Educational Technology published a report in May 2023 titled Artificial Intelligence and the Future of Teaching and Learning. The report said that, shortly, AI would drive more changes in the way we currently offer inputs to these AI solutions, how they process it, and the output they end up providing. 

For instance, the current input mechanisms involve:

  • Typing.
  • Clicking and dragging, and touching and gesturing, which will soon change to speaking.
  • Drawing and analyzing images and video. 

Now, the edtech AI solutions help display information and tasks, sequence learning activities, and check student work. And in the future, it will assist students and teachers by helping them plan and adapt activities and reveal patterns in student work.

The output that comes now in the form of text, graphics, multimedia, and dashboards will come in the form of conversations, annotations and highlights, suggestions and recommendations, and assistance in organizing and guiding. 

More solutions like Gradescope will come. Adapted by more than 2,600 universities and applied to more than 700 million questions by more than 3.2 million students, Gradescope helps grade all of your assessments, whether online or in class. It has helped more than 140,000 educators so far to get a clear idea of their students' performance. 

AI in Climate Change Mitigation and Space Exploration

From advertising and packaging to education, the range of AI is as wide as it can get. And if that is not enough, it is helping address matters as complex as climate change and space exploration. 

In the future, industry analysts expect AI to help more intensively in the areas of weather prediction and disaster management. It will help optimize energy consumption and minimize the emission of greenhouse gasses by empowering smart grids and other types of optimized energy consumption algorithms. There is also the notion of AI-powered precision agriculture on the horizon that will improve crop yield, make farming sustainable, and reduce wastage.

In space exploration, companies like SpaceX and Blue Origin are making substantial AI investments so that they can help identify potential еxoplanеts and analyze their suitability for human habitation. Space will become increasingly commercialized in the future, and AI will help shape the nature of that. 

AI has to Be Ethical

With AI occupying more and more of our lives each passing day, ethical considerations on how to leverage this technology are becoming more and more critical. It must not increase the existing inequalities. Rather, it should try to bridge the prevailing gaps to make the world a more equitable space in the future. It must not intrude into our private lives and should be secure, fair, transparent, and unbiased. 

Governments, councils of unions, academia, and businesses should all put their energies together to ensure that the future of AI is a safe, reliable, and truly uplifting one. 

Click here to learn all about investing in artificial intelligence.

Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.