CCS Insight predicts that the EU will indeed be the first to introduce specific regulations for AI.
CCS Insight, a leading technology research firm has made a bold prediction that generative Artificial Intelligence (AI) is in for a reality check in 2024, as the hype surrounding this transformative technology gives way to the practical challenges it poses.
The Cold Shower for Generative AI in 2024
According to recent reports, CSS Insight shared this prediction in its annual roundup of top predictions for the tech industry in 2024 and beyond stating that generative AI might “get a cold shower in 2024” as the reality of the cost, risk, and complexity involved “replaces the hype” surrounding the technology.
Ben Wood, Chief Analyst at CCS Insight, pointed out the stark difference between the hype and the reality of generative AI. “We are big advocates for AI. We think it’s going to have a huge impact on the economy and society at large; we think it’s great for productivity,” Wood stated. “But the hype around generative AI in 2023 has just been so immense that we think it’s overhyped, and there are lots of obstacles that need to be overcome to bring it to market.”
Generative AI models such as OpenAI’s ChatGPT, Google Bard, Anthropic’s Claude, and Synthesia rely on vast amounts of computing power to run complex mathematical models that enable them to generate responses to user prompts.
Companies must acquire high-powered chips to run these AI applications, with advanced Graphics Processing Units (GPUs), like those designed by US semiconductor giant Nvidia Corp (NASDAQ: NVDA), being the preferred choice for both large corporations and small-scale developers.
However, the trend is shifting. Tech titans like Amazon.com Inc (NASDAQ: AMZN), Alibaba Group Holdings Ltd (HKG: 9988), and Meta Platforms Inc ( NASDAQ: META) are reportedly taking matters into their own hands by designing specialized AI chips tailored to their specific AI workloads. While this approach might be sustainable for tech giants with deep pockets, it presents a significant challenge for smaller organizations and independent developers.
Analysts Forecasts on EU AI Regulation
Furthermore, CCS Insight predicts that the EU will indeed be the first to introduce specific regulations for AI. Still, due to the rapid pace of advancement in the field, these regulations are expected to be revised and redrawn multiple times. Wood points out that “legislation is not finalized until late 2024, leaving industry to take the initial steps at self-regulation”.
The urgency to regulate AI has been fueled in part by the buzz surrounding generative AI. Technologies like OpenAI’s ChatGPT, Google Bard, and others have captivated technology enthusiasts, venture capitalists, and corporate boardrooms alike with their ability to generate human-like text, images, and even music in response to text-based prompts.
However, this rapid advancement has also raised concerns, both among government officials and the public. Some fear that highly advanced AI systems like generative AI may lead to job displacement and ethical concerns. As a result, several governments worldwide have been calling for AI regulation.
In the EU, efforts are underway to pass the AI Act, a landmark piece of legislation that aims to introduce a risk-based approach to AI. Under this proposed regulation, certain technologies, such as live facial recognition, could be prohibited altogether.