The Future of Gen AI
A Perspective on Deloitte's Latest Report
The digital landscape is evolving at an unprecedented pace, and at the heart of this transformation lies Artificial Intelligence (AI). Deloitte's recent report, "Generation AI: Ready or not, here we come!" offers a comprehensive look into the state of Gen AI in Australia. As someone deeply entrenched in AI/ML, I found the insights enlightening and thought-provoking.
Having co-founded REALas, an AI/ML startup later acquired by ANZ, I've witnessed firsthand the transformative power of AI. From startup to acquisition, this journey provided a unique vantage point to understand the intricacies of AI integration in both the startup ecosystem and the broader banking sector. As a Chief Product Officer in the management consulting industry, I stand at the crossroads where innovation meets strategy, making Deloitte's report particularly resonant with my experiences.
The Youth Leading the Charge
One of the standout insights from the report is the significant adoption rate of Gen AI among students compared to current employees. This isn't just a statistic; it's a testament to the future. Growing up in an era dominated by smart devices and AI-driven technologies, the younger generation is naturally more attuned to the digital realm. Their comfort with AI tools today will translate into a workforce tomorrow that's not just familiar with AI but expects it as a standard.
This means a dual challenge for businesses: adapting to this new workforce's technological demands while bridging the knowledge gap for the current employees. Continuous training, education, and upskilling will be paramount. The onus will also be on educational institutions to revamp curricula to ensure students are equipped with the skills needed for the AI-driven future.
Economic Implications and Opportunities
Deloitte's Gen AI Disruption Map is a stark visual representation of at-risk industries. While the potential disruptions are evident, I see this as a canvas of opportunities. Just as the rise of the internet led to the birth of entirely new sectors and job roles, so will the AI revolution. The key lies in proactive adaptation.
During my time at REALas, we leveraged AI to bring transparency to property prices, a domain traditionally riddled with opaqueness. Such ventures' success underscores AI's potential to disrupt and innovate even the most established sectors. This disruption isn't limited to just the private sector. From healthcare to urban planning, public sectors can gain immensely from AI integration, leading to more efficient services and better resource allocation.
ANZ's Pioneering Steps into Generative AI
ANZ, one of Australia's leading banks, has not been left behind in the race to harness the potential of generative AI. Generative AI is a subset of artificial intelligence that empowers machines to generate content, ranging from text and images to music and videos. As Tim Hogarth, Chief Technology Officer at ANZ, recently shared, the bank has been proactive in exploring the capabilities of this technology.
"There’s a race underway to understand how these technologies will disrupt and transform many industries – and financial services is no different.”
- Tim Hogarth, Chief Technology Officer, ANZ
ANZ's response to this technological wave is the development of Z-GPT, a chatbot powered by generative AI. Designed as ANZ's internal version of ChatGPT, Z-GPT is a 'private instance', ensuring its large language model remains exclusive to ANZ. This exclusivity allows the bank to safely explore generative AI, particularly in generating or understanding internal information.
The bank's AI Centre of Experimentation in India has been instrumental in developing Z-GPT. The centre, established in Bengaluru, focuses on AI explorations to position the bank optimally for the future. The team there has been extending the initial experiment to work across subsets of ANZ's internal data, making the business possibilities of AI more tangible.
One of the standout applications of Z-GPT is in the realm of information organisation. Hogarth elaborates on the tool's efficiency, explaining how it can build highly targeted searches for specific ANZ information using natural language questions. This capability streamlines processes, making tasks like generating reports more efficient by replacing many reporting-based tools with simple natural language interfaces.
However, ANZ's approach remains cautious and grounded. Hogarth emphasises, "We are still moving carefully and we won’t apply generative AI on a large scale until we have more confidence on the strengths and weaknesses." This balanced approach underscores the bank's commitment to ensuring that while they harness the power of AI, they do so responsibly and effectively.
Ethical Challenges
The report rightly touches upon the concerns surrounding Gen AI's use of personal and confidential information. Ethical considerations become paramount as AI systems integrate into our daily lives. Data privacy and transparency in decision-making are crucial. Furthermore, potential biases in AI algorithms, such as racial or gender bias, socio-economic bias, or cultural bias, can lead to unfair or discriminatory outcomes. These biases often reflect or amplify societal biases in the training data, underscoring the need for careful oversight and regular audits of AI systems.
Having navigated the regulatory and ethical landscape in the banking sector post the REALas acquisition, I believe that a collaborative approach between businesses, regulators, and AI practitioners is the way forward. Clear guidelines, robust checks and balances, and an emphasis on 'ethical AI' will be crucial. Furthermore, public awareness campaigns can be pivotal in educating the masses about AI's benefits and potential pitfalls, ensuring a more informed user base.
The Road Ahead
While Deloitte's report offers a snapshot of the current landscape, the future of Gen AI is vast and largely uncharted. As businesses, we must be agile, ready to pivot, and, most importantly, willing to embrace change.
In the management consulting domain, where I currently operate, the potential of Gen AI is immense. From data-driven insights to predictive modelling, the applications are endless. However, the true power of AI lies not just in automation but in augmentation – enhancing human capabilities rather than replacing them. This symbiotic relationship between humans and AI will redefine industries, leading to innovative solutions and unparalleled growth.
In conclusion, Deloitte's "Generation AI" report reminds us of our transformative journey. The Gen AI wave is here; we must ride it to its full potential. As businesses, leaders, and innovators, we have the tools, the knowledge, and the drive. Let's shape a future that's not just AI-driven but also ethically sound, inclusive, and forward-thinking. The next decade promises to be one of rapid evolution, and with the right strategies in place, we can ensure that this evolution benefits all stakeholders.