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  • Anthropic announces its most powerful AI yet

Anthropic announces its most powerful AI yet

Also: Higher earners face greater AI exposure, study finds

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AI KATANA
June 20, 2024

Morning!

In today’s newsletter, we spotlight the latest advancements and strategic moves in the AI landscape. Anthropic has launched Claude 3.5 Sonnet, a cutting-edge AI model featuring real-time text and code collaboration capabilities, underscoring its bid to rival industry giants like OpenAI. Meanwhile, a new study highlights that higher earners in roles such as software engineering are more susceptible to AI’s disruptive potential, raising concerns about future job displacement. Embracer Group is integrating AI to empower game developers, aiming to enhance creativity and efficiency rather than replace jobs. On the financial front, Citigroup reports that AI could displace over half of banking jobs while boosting the sector’s profitability. Additionally, Target is rolling out an AI tool to assist store employees, and HeyGen and Daydream have secured significant funding to advance AI-driven video production and e-commerce search technology, respectively. These developments reflect AI’s transformative impact across various industries and its growing influence on the global economy.

Sliced:

  • 🦾 Anthropic announces its most powerful AI yet

  • 💵 Higher earners face greater AI exposure, study finds

  • 🎮 Embracer Group believes AI will ‘empower’ game developers

  • 🏦 AI Could Displace More Than 50% Of Banking Jobs, According To New Citigroup Report

Anthropic has unveiled Claude 3.5 Sonnet, its most advanced AI model to date, enhancing the capabilities of its Claude series. This launch follows the release of the Claude 3 models earlier this year and is designed to be faster and more versatile than its predecessor, Claude 3 Opus. Claude 3.5 Sonnet is available for free via the Claude website and app, with expanded features for Pro and Team subscribers. Notably, it introduces “Artifacts,” a feature enabling users to create, view, and edit text and code in real-time within a dynamic workspace. This innovation is aimed at applications across coding, legal document drafting, and business reporting. The development underscores Anthropic’s competitive stance in the rapidly growing generative AI market, vying with giants like OpenAI and Google. In addition to product advancements, Anthropic’s recent strategic hires, including Instagram co-founder Mike Krieger and OpenAI’s former safety leader Jan Leike, signal its aggressive push to solidify its position in a market forecasted to exceed $1 trillion in revenue within the next decade.

Recent research indicates that higher earners, such as software engineers and data scientists, face greater exposure to the impact of AI compared to lower-paid workers. A study published in Science analyzed over 900 occupations and found that nearly 18.5% of workers have more than half of their job tasks potentially affected by advancements in machine learning. This impact is more pronounced in higher-paying roles like blockchain engineers and financial analysts, whereas jobs like motorcycle mechanics remain largely unaffected. The study highlights the potential for AI to significantly alter labor markets, particularly in fields involving information processing. The International Monetary Fund has raised concerns about the potential for AI to exacerbate inequality, particularly in highly skilled sectors. The findings underscore the need for further research to understand the real-world implications of AI on employment and worker experiences.

Embracer Group, the company behind popular franchises like The Lord of the Rings and Tomb Raider, is embracing AI as a means to enhance game development. According to their latest annual report, Embracer’s “Group AI Policy” focuses on empowering game developers rather than replacing them. The company believes that AI can significantly boost efficiency in game production, enable more intelligent and personalized gameplay experiences, and open up game development to a wider audience by lowering technical barriers. Despite recent layoffs raising concerns about job security, Embracer insists that AI will be used to support and elevate its workforce. They stress the necessity of adopting AI to maintain competitiveness and mitigate risks in the rapidly evolving tech landscape. Embracer acknowledges potential governance challenges and emphasizes a human-centric approach to integrating AI, aiming to use the technology to foster creativity and innovation within their teams.

A recent Citigroup report has forecasted that over half of banking jobs could be displaced by AI in the coming years. This significant shift is expected to impact 54% of roles within the sector, particularly those involving routine and highly automatable tasks such as customer service, back-office operations, and certain analytical functions. The report also notes that an additional 12% of jobs could be augmented by AI, enhancing their efficiency and capabilities. Despite the potential for job displacement, AI presents substantial opportunities for growth and innovation within the banking industry. Citigroup anticipates that the adoption of AI could boost the global banking sector’s profit pool by 9%, translating to an increase from approximately $1.7 trillion to $2 trillion. The bank is actively integrating AI into its operations to maintain competitiveness and improve profitability. This includes leveraging AI for personalized investment recommendations and bolstering cybersecurity measures. As AI reshapes the industry, it also highlights the need for reskilling and adapting the workforce to thrive alongside new technologies.

🛠️ AI tools updates

Target is set to launch its new generative AI tool, “Store Companion,” in August 2024, aimed at enhancing the efficiency and effectiveness of its nearly 2,000 store employees. This AI-powered chatbot, developed in-house, will be accessible on employees’ handheld devices to assist with various tasks, from answering questions about store procedures and product locations to providing guidance on the Target Circle loyalty program. The tool is currently being piloted in 400 stores and will be rolled out nationwide later this summer. Target’s CIO, Brett Craig, emphasizes that the goal is to empower employees, not replace them, ensuring they can provide a superior guest experience. This move aligns with similar AI initiatives by other major retailers like Amazon, Walmart, and Best Buy, which are increasingly integrating AI to streamline operations and improve customer service amid rising labor costs and evolving market demands.

💵 Venture Capital updates

HeyGen, an AI-driven video generation platform, has raised $60 million in Series A funding to enhance and scale its visual storytelling solutions for businesses. Led by Benchmark, with participation from Thrive Capital, Google Ventures, and others, the funding aims to support HeyGen’s mission of making high-quality video production accessible and efficient. HeyGen’s technology allows users to create and localize videos in 175 languages without traditional production costs or timelines, using AI to generate content that maintains natural voice and lip sync. This innovation addresses the growing demand for engaging video content in marketing, training, and communication while overcoming the barriers of conventional video production. With a remarkable increase in annual recurring revenue from $1 million to $35 million in just over a year, HeyGen plans to further develop its product offerings, including new features in AI avatars and video translation. The company’s tools are already used by a diverse range of customers, from small businesses to global corporations, demonstrating its broad applicability and impact on the market.

Daydream, a startup founded by e-commerce veteran Julie Bornstein, has secured $50 million in seed funding to develop an AI-powered search engine tailored for the fragmented e-commerce landscape. Leveraging generative AI, machine learning, and computer vision, Daydream aims to revolutionize how consumers find products online by offering highly personalized search results. Initially focusing on the fashion industry, the platform supports natural language queries and image recognition, enabling users to describe their needs conversationally or upload images to refine searches. With over 2,000 brands like Net-A-Porter and Jimmy Choo already onboarded, Daydream is set to launch in the U.S. this fall. Backed by Forerunner Ventures, Index Ventures, Google Ventures, and True Ventures, the company plans to use its funding to expand its team and scale operations. Unlike traditional search tools that often rely on SEO and ad-based personalization, Daydream’s approach promises a more intuitive and user-centric experience, potentially setting a new standard in e-commerce search functionality.

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