After a year of fast and furious development of generative AI, the industry is at a crossroads. The technology is poised to deliver unprecedented productivity growth but may be hamstrung by limits to the technology as well as guardrails for its usage.. Interestingly, while AI continues to become mainstream, the study's authors observe that the investment wave and the need for AI development skills has waned.
There's no question that AI has become smarter and more powerful over the past 12 months. At the same time, the costs of building and maintaining large language models has increased astronomically, In addition, the industry still lacks standards for responsible AI best practices. At the same time, generative AI investment skyrocketed over the past 12 months."Funding for generative AI surged by a factor of eight, from 2022 to reach $25.2 billion. Major players in the generative AI space, including OpenAI, Anthropic, Hugging Face, and Inflection, reported substantial fundraising rounds."