ChatGPT IS THIS THE EUREKA MOMENT FOR ARTIFICIAL INTELLIGENCE? - FEBRUARY 7, 2023
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ChatGPT IS THIS THE EUREKA MOMENT FOR ARTIFICIAL INTELLIGENCE? 10-min read FEBRUARY 7, 2023
Artificial intelligence is now ready to help you – with texting,
editing, researching, coding, and much more besides
Breakthrough moment?
An estimated 4
million
call center agents
are employed
globally, and their
-80%
numbers are increasing
Experts estimate that
80% of their work
could be done
automatically
by ChatGPT very soon
2
Time to think – and act: Artificial intelligence is here to stay,
and you better get prepared for an AI-driven future now
Key action fields
ACCESS TO KNOWLEDGE WILL BE DIGITAL AND DATA-DRIVEN DECISIONS THE ABILITY TO THINK
SIMPLIFIED; IT WILL THUS BE WILL BECOME THE KEY MULTIDISCIPLINARY AND TO USE
DEMOCRATIZED AND INFUSED INTO DIFFERENTIATOR FOR ALL DIGITAL TOOLS SMARTLY WILL BE A
EVERY APPLICATION ORGANIZATIONS IN THE NEXT 5 YEARS CRUCIAL ASSET FOR EMPLOYEES
Digitalize your Transform your it into Train/upskill your
entire business a business enabler entire workforce
3
The ChatGPT chatbot is built on top of OpenAI's GPT-3.5 family of large language
models. It is finetuned with supervised and reinforcement learning techniques
Chat Generative Pre-trained Transformer (ChatGPT)
Launch: November 2022
HOW DOES CHATGPT WORK?
Time to 1m users: 5 days
Coming soon: $20/m premium subscription
(announced for Q1/2023)
Professional SaaS/API
through Microsoft Azure Cloud
(announced for Q2/2023)
Data: Roughly 300 times larger Analyze enormous Learn answers Define the Optimize
than Wikipedia amounts of from humans best answer answers
text data
"General Language "Supervised "Reward Model" "Reinforcement
Model: 2x more than the Model" = GPT-3.5 Training Model" Learning Model"
human brain has in neurons Baseline Model
Source: OpenAI, Microsoft, Wikimedia 4
Just the beginning: ChatGPT is the product of exponential progress in the field
of AI, with more use cases on the cusp of maturity
The evolution of GPT, model parameters/training data
Parameters [billion]
Create an augmented reality app for
2023? 1,000
indoor navigation of my floor plan
2022 175 Nowadays, AI can combine knowledge
and give human-like answers
2020 14
2019 8
2018 4
UP TO THIS POINT,
2017 3 CHATBOTS RETURNED
ONLY PRE-GENERATED
2016 2 INFORMATION
Source: Companies' press releases 5
Most tech giants are pushing their own solutions, with the underlying technology
increasingly becoming a commodity
Conversational AI technologies
COMPANY PRODUCT SEARCH HITS [m]
ChatGPT ~618 The big battle is between
WHY DOES
LaMDA 2; BARD ~129
Microsoft and Alphabet;
especially Microsoft and
its affiliate OpenAI with its
ChatGPT
LUIS ~26.5
current early mover advantage.
But the competition is just getting started. STAND OUT?
• It's the only one publicly
Lex ~22.1 available
Watson Assistant
– >1 m users in 5 days
~7.2
– >100 m within 3 months
Galactica ~1.4 • $11 bn in
funding
ERNIE 3.0 ~1.3 received
JARVIS ~0.8
Source: Companies' press releases, Searchmetrics, Roland Berger 6
Take the long view: This is not about who wins the race. It's
about who stays competitive in the new business reality
"The big It's more a matter of how
question is not well equipped any
who will win. company is to handle the
In these early potential implications of
days, that would be like introducing technology
asking, at the dawn of that will do work
the 19th century, who previously done by
will come out of the humans but that has
industrial revolution on neither the ability nor the
top. moral compass to check
the reliability of
its work."
Source: Economist, January 25, 2023 7A jack of (almost) all trades: GPT-3.5 offers various functions that could be applied
to boost productivity in different business functions
Functions
SEARCH & DATA ANALYSIS PROGRAM GENERATION TEXT GENERATION CONTENT CREATION GENERAL REASONING
• Summarize search • Read code and respond • Write in attorney style • Create content • Provide explanations
• Augment information • Generate SQL code • Create full emails • Write Google ads • Solve logical tasks
• Set up spreadsheet • Generate Python • Rephrase sentences • Create job descriptions • Do math
Please generate a table of the Create a SQL statement to join Create an email to invite a friend Please rewrite in a catchy style: Please do a curve discussion for
release dates of GPT1 – GPT4 two tables for dinner GPT-3 can create marketing f(x)= 2x^2 +12x – 3
content, from product description
to blog posts
8ChatGPT and its foundation GPT-3.5 will affect all business functions substantially –
some sooner than others
IMMEDIATE/SHORT TERM MID TERM FUTURE
• Software development • Customer service • White spot analysis
• Process automation • Human resources • Influence business strategy
GPT will initially disrupt all service-related GPT will substantially affect business Although the individual impact will differ, all
business functions with a large share of functions that require analytical tasks and business functions will be affected by GPT
standardized, text-related tasks information processing usage
9Start now and implement the no-regret moves, and continuously evolve into the
more advanced uses cases
Sample use cases
USE AI-SUPPORTED SOFTWARE CUSTOMER SUPPORT WHITE SPOT
CASE DEVELOPMENT AUTOMATION ANALYSIS
Description Even the most skilled AI developer is Qualified answer anywhere, anytime White spot analysis – Evaluate areas for
saying that GPT can generate 80-90% of based on the customer's actual R&D where there is the lowest evidence
their code situation
Efficiencies • Factor of 2 on average • Halve customer support cost • Focus on exploring white spots
• Factor of 5 in specific cases • Improve customer satisfaction • Reduce failed investments
Prerequisites Have it available with next developer Modernize tech stack and prepare Get insights, prepare datasets and
tools release datasets finetune results
10Starting with the now publicly available ChatGPT, there will be options of different
complexity for companies to use language models
How to use
ChatGPT ChatGPT ChatGPT INDIVIDUAL USE TRANSFORM YOUR BUILD YOUR OWN
BETA PREMIUM WITH API CASE KNOWLEDGE MODEL
Model data Generic public model Generic public model Generic public model Finetuned public model Embedded content in Individual model and data
public model
Access Public via web Freemium via web Public via API Public via API Public via API Private, full access
Requirements N/A N/A Product owner Product owner Product owner Product owner
Data scientists Data scientists Data scientists Data scientists
Software developers Data engineers Data engineers Data engineers
Software developers Software developers DevOps engineers
Enterprise architects
Time to implement
Zero Zero Low Medium High Very high
(estimate)
Scalability Low, no SLA yet Low High High High High
Customization No No No Low Medium High
Cost assumption1) Free $20/month per user ~ $0.02 per request ~ $0.12 per request ~ $0.12 per request Exceptionally high
(kind of rebuilding
ChatGPT)
1) Used Davinci as comparable
11ChatGPT & GPT have exceptional capabilities in both communication and analysis,
but they are no silver bullet – complex and individualized requests remain difficult
Capability of the current model
WHAT is it good at? WHERE does it fall short?
• Understanding and generating text • Can produce biased or inappropriate
• Incorporates large-scale knowledge about responses
language • Lacks creativity
• Strong in contextual • Communicates only with words
comprehension/conversation • Is biased based on the input received
• Provides high-quality information in • Does not have an understanding of the
real time context
• Offers cost-effective service • Is of limited use for complex or abstract
• Approaches tasks in a customized/ concepts
finetuned way • Does not provide fundamental truths
12Not a tech topic: Readily available AI is a strategic topic.
Every CEO should be asking these questions
It's strategy, not IT
HOW
does this affect my competitive advantage now that knowledge is no longer exclusive to many domains?
WHAT
are the low-hanging fruit for efficiency improvements within my company, and how do I realize them?
WHICH
core competencies will remain and require further enhancements?
HOW
can I enable my teams to identify and leverage the potential in their areas?
HOW
must my business model strategy be further developed?
13There are many opportunities to be realized
How to unlock the value for you
DEFINE YOUR Impact of ChatGPT Use cases and pilot identification
OBJECTIVE • Heatmap per business function • Company-specific use cases • It is not a technical
• Effect on other technologies • Market relevance in the industry
challenge anymore
• General business case example • Competitor announcements if any
• It's a question of
IT and tech requirements Organizational requirements strategic positioning,
IDENTIFY GAPS
TO ACHIEVING IT • IT infra and data requirements • Define the target operating model focusing on core
• Maturity of API and applications • Define required expert knowledge competencies and
• (Hybrid) cloud setup to scale • Check with GDPR/compliance enhancing the
business strategy
SHAPE AND BUILD Business case Implementation plan
THE SOLUTION • Evaluate potential savings • Prioritize the most valuable topic
• Estimate initial and running costs • Define the epics and user stories
• Align the business case • Implement the most valuable topic
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