What is Generative AI -- and How Could It Impact the Workforce?
Generative AI is a form of machine learning that can generate new content such as text, voice, video, images or code based on what it’s learning from existing data. What is most impressive is that this type of AI can create content in a way that is controlled by natural language, meaning that someone who has no specialized expertise in a subject matter can conversationally describe the desired output or outcome. For example, a novice songwriter can use generative AI to generate melodies, lyrics or even complete sections of a song.
Predictive AI
Generative AI
Mimics human logic
Mimics human creativity
Uses statistical algorithms to analyze data and make forecasts
Uses complex algorithms to produce new data and content
Lacks content creation capability
Has ability to produce original content that did not exist beforehand
Infers future events based on historical and current data
Learns combined patterns from existing data to create new and unique forms
Anticipate customer behavior
Accelerate innovation
Identify potential risks
Augment human workloads
Optimize operations
Enhance user experience
Inform decision-making
Solve complex problems
When we begin to think about a software platform with the ability to create customized content, it’s hard not to get excited about the possibilities. Especially when considering the ongoing global labor shortage. The list of generative AI-based platforms, like ChatGPT, OpenAI, Databricks and FotorAI, is expanding rapidly. If democratized, these tools could transform enterprise software products into “virtual assistants” that could help with everyday mundane tasks.
For example, ChatGPT can be used to develop chatbots designed to simulate conversations with end users. Talkbot technology has been around for decades; however, generative AI has taken these interactive agents to the next level and could eventually replace the role of the customer service agent. AI chatbots can do more than suggest common answers based on predetermined questions. They can provide automated and personalized responses and offer support in many different languages. An AI-powered bot can identify words from text or voice and in turn articulate intelligent responses. It’s even smart enough to provide follow-up support.
Other tasks that could easily be automated by large language models include marketing content, white papers, blog posts, social media messaging and email campaigns.
Companies will also begin to use large language models to create financial reports, assess credit risk, aid in fraud detection and file many of the regular routine reports created by financial services professionals.
Generative language-based AI can even expertly create computer programming that can be used for software development. It’s been known to successfully identify errors in application development and suggest more efficient methods for coding, making it an effective teacher to help humans improve their own coding skills.
The list of jobs impacted by AI systems continues to grow. Goldman Sachs economists Joseph Briggs and Devesh Kodnani published a report stating that the advancements being made in AI technology have the potential to automate two-thirds of US occupations, replacing 25-50% of their workload. The authors stated, “Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI.”
It’s important to call out that the advancements of generative AI will not replace humans completely. In fact, the roles affected will likely be impacted in a way that will increase productivity and performance leading to greater employee satisfaction and retention.
A 2023 study published by the National Bureau of Economic Research focuses on generative AI that specifically creates content like images, audio and text.
The study reviewed 5,000 customer service agents at a major software company and noted that AI assistance resulted in a 13.8% increase in the number of chats that an agent at a Fortune 500 software company completed per hour, and increased the performance of less skilled and less experienced customer service agents across all productivity metrics.
The researchers concluded, “Our overall findings demonstrate that generative AI working alongside humans can have a significant positive impact on the productivity and retention of individual workers.”
