Generative AI Gains Momentum Amid Hype, Funding & Job Loss Fears: Deutsche Bank Report

Artificial Intelligence as a technology in its current form is largely task-oriented and typically not capable of dealing with a situation where logic and reasoning are needed. But it is here to stay and it has of late become the talk of the town.

Generative AI, also referred to as GenAI is being adopted by companies and institutes, as it allows users to input a variety of prompts to generate new content, such as text, images, and videos, among others.

Deutsche Bank Research in a report this week, citing media reports, listed five clues as to why AI is exciting.

Five themes stand out from the headlines from the last week or so, giving strong clues about the future of AI as the world buckles down for the rest of the year.

From AI-related stocks doing well to AI companies receiving big-ticket funding to growing appetite for regulation, broadening use cases of the technology are indications that AI is garnering eyeballs the world over.

"AI is the elephant in the stock room; Data centres are AI Ground Zero; AI is still a magnet for funding; Political appetite is growing for AI regulation; Real-world uses have yet to emerge at scale," said Deutsche Bank Research.

Though AI is still in its early stages, many countries have been using AI technologies for better service delivery and to reduce human intervention but fears of job cuts remain as the technology evolves.

Dubbed the 'Magnificent Seven' stocks -- Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla, this group of stocks, as per the report, now account for 30 per cent of the S&P 500's total market capitalisation of almost USD 50 trillion.

"The rollercoaster ride of the S&P this year, with 14 per cent growth in the first half followed by a flat third quarter so far, has been driven by the big tech companies," the report said citing a news article.

With merit comes demerits, and this is exactly the fear amongst people globally, particularly for countries having unemployment issues.

"Fears about AI typically revolve around truth, jobs and safety, emerging both from intentional misuse and from dependence on novel, flawed and potentially - at some stage - autonomous technology," the report read.

"The regular person though does not doubt the greatest concern, with almost half of UK citizens surveyed this year saying that they fear that AI will take people's jobs," it added.

Speaking of India, given India's strong IT industry and a large set of data, AI-based utilities can leverage huge potential in the country, but possible job loss remains a concern. India generates about 20 per cent of global data.

On the use of AI, India's stance has always been that the internet and every other emerging technology should be deployed in a "safe and trusted" manner. (ANI)