NXT ANIMAL Brings Tech and Biz to ART. So Creatives Gain an Edge.

NXT ANIMAL Brings Tech and Biz to ART. So Creatives Gain an Edge.

Artificial intelligence (AI) has become a hot topic in recent years, with its potential to revolutionize various industries. But when it comes to the AI value chain, who really wins? There are two types of AI threats to consider. The first is the doomsday scenario where a super-intelligent AI takes over the world, which is fun to think about but highly unlikely. The second threat, however, is more realistic and involves a small group of people making significant profits from AI advancements.

To understand the AI value chain, we must first look at its foundational model. This model combines computing power and data with advanced mathematical algorithms to create a machine that can do more than just follow instructions. It is a powerful tool that can be applied to various use cases. But if the foundational model is not sufficient for a specific scenario, it can be fine-tuned to meet the requirements. This fine-tuning process involves optimizing the model for a particular use case, ensuring its effectiveness and efficiency.

The end user access point is where the AI model is deployed in an application. Just like electricity, AI is a power that runs through an entire organization, but it is also a product with its own ecosystem of support. The compute layer in the value chain provides the raw power needed to run AI algorithms. However, it is not as simple as running AI on a specific type of chip. Some AI algorithms require the simultaneous use of hundreds or even thousands of GPUs.

Training AI models typically involves using a labeled dataset. However, recent advancements have shown that labeled data is not always necessary. By combining data, compute power, and advanced AI math, a model can be generated. This model can then be fine-tuned to meet specific requirements. For example, the author of this article used the Stable Diffusion foundational model and fine-tuned it with Google's Dreambooth model to generate a custom cover image.

Some companies choose to skip the creation of AI processes altogether and instead modify existing offerings. These companies utilize models like GPT-3 but add their own fine-tuning to meet specific needs. Their primary value lies in guiding users through the implementation of AI algorithms.

The integration of AI capabilities into existing products is another important aspect of the AI value chain. Companies like Microsoft have already started integrating AI models into their Office suite, enhancing the user experience and productivity.

Looking ahead, major consolidation is expected in all levels of the AI value chain, except for access points. Cloud providers like AWS, Oracle, and Azure are likely to develop their own custom AI workload chips, networking software, and in-house models for reference by users. The development of fundamental models will continue to improve rapidly, reducing the importance of fine-tuning. Instead, companies will focus on attracting top talent who can push the boundaries of AI capabilities.

One of the most successful AI companies in recent years is Bytedance, the parent company of TikTok. They understand that AI is not the product itself, but an enabling technology that allows for the creation of breakthrough products. The true value lies in building AI-native products from the ground up, understanding what the models can do, and meeting the needs of users.

In conclusion, the AI value chain is complex and multi-faceted. The key to success lies in understanding the various stages and finding opportunities to add value. Here are three actionable pieces of advice to consider:

1. Embrace fine-tuning: While foundational models are important, fine-tuning them for specific use cases can greatly enhance their effectiveness. Invest in the talent and resources needed to fine-tune AI models to meet your organization's unique requirements.

2. Integrate AI into existing products: Look for ways to incorporate AI capabilities into your current offerings. This can enhance the user experience and provide a competitive edge in the market.

3. Stay ahead of the curve: Keep a close eye on advancements in the AI industry. Major consolidation is expected, and being proactive in adopting new technologies and approaches can give your organization a significant advantage.

By understanding the AI value chain and taking strategic actions, businesses and creatives can gain an edge in this rapidly evolving field. AI is not just a buzzword; it has the potential to transform industries and unlock new possibilities. Embrace the power of AI and leverage it to drive innovation and growth.