CEOs Embrace Generative AI as Productivity Jumps to the Top of their Agendas

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In today's roundup, a global study by IBM reveals that 50% of CEOs are integrating generative AI into their digital products and services, with productivity now the top priority, marking a shift from its sixth place ranking in 2022. Startup accelerator, Y Combinator, reports that 35% of its latest cohort are AI-focused companies, reflecting the technology's escalating importance. Meanwhile, Japanese banking giant Mizuho is providing all its employees with access to Microsoft's Azure OpenAI service, while Baidu's Ernie Bot is claimed to outperform OpenAI's ChatGPT and GPT-4 in several critical areas. In brand news, AI is transforming advertising and branding, pushing the traditional model towards more personalized connections with customers. On the tools front, Booking.com has launched a new AI Trip Planner utilizing OpenAI’s ChatGPT API, promising to enhance the travel planning experience. In funding updates, AI startup Reka has raised $50 million for its specialized AI models and Gleamer, an AI software provider for radiologists, raised $29.5 million.

Let’s get slicing shall we?

• 👨🏻‍💼CEOs Embrace Generative AI as Productivity Jumps to the Top of their Agendas

• 👩🏻‍💻Y Combinator’s latest batch is 35% AI startups

• 🇯🇵 Mizuho Rolls Out Generative AI to All 45,000 Bank Staff in Japan

• 🤔 AI is the end of the brands as know them

👨🏻‍💼 CEOs Embrace Generative AI as Productivity Jumps to the Top of their Agendas

A new global study by IBM's Institute for Business Value, in cooperation with Oxford Economics, interviewed 3,000 CEOs from over 30 countries and 24 industries reveals that half (50%) of the CEOs surveyed are integrating generative AI into their digital products and services, while over half (57%) express concerns about data security and bias. Productivity, driven by technology modernization, emerged as the highest business priority for nearly half of the CEOs surveyed, a significant jump from its sixth place ranking in 2022. The study also highlights a disconnect between CEOs and their teams regarding AI readiness, with only 29% of executive teams believing they have the necessary in-house expertise for adopting generative AI. This AI technology is driving changes in the workforce, with 43% of CEOs reporting workforce reductions or redeployments due to generative AI, and an additional 28% planning to do so within the next 12 months.

👩🏻‍💻 Y Combinator’s latest batch is 35% AI startups

Y Combinator, a renowned startup accelerator, has announced that 35% of its most recent cohort are AI-focused companies, highlighting the growing importance of AI in the startup scene. The latest batch saw a record 24,000 applications, with under 1% being accepted. About half of the accepted startups incorporate AI into their business model. Garry Tan, the president and CEO of Y Combinator, emphasized the significance of AI during a recent interview. Additionally, the accelerator will require all founders to participate in-person in the Bay Area, marking a return to pre-pandemic protocols. Y Combinator runs two annual programs, pledging to invest $500,000 in each selected startup and offering a three-month course on running a company.

🇯🇵 Mizuho Rolls Out Generative AI to All 45,000 Bank Staff in Japan

Mizuho Financial Group Inc., a Japanese banking giant, is providing all its employees in Japan with access to Microsoft's Azure OpenAI service, making it one of the first financial firms in the country to adopt this transformative generative artificial intelligence technology. The bank will allow its 45,000 workers at its core lending units to test the service, with employees already submitting numerous pitches to leverage the technology even before the software is installed. The move has sparked enthusiasm among the staff, many of whom are already familiar with ChatGPT in their personal lives. While some global banks have restricted the use of AI like ChatGPT for employees, Japanese financial firms seem to be taking a more liberal approach.

🤔 AI is the end of the brands as know them

AI is driving a transformative shift in the world of advertising and branding, as highlighted at the recent Cannes Lions International Festival of Creativity. This shift revolves around various principles. First, AI promotes 'functional speed', enabling brands and individuals to rapidly produce and scale projects, as exemplified by Adobe and Design Army. Secondly, AI moves the customer interaction focus from transaction to conversation, increasing the value of friendly and knowledgeable services. Thirdly, brands are transitioning from Unique Selling Propositions (USPs) to Points of View (POVs), creating personal connections with customers, as seen in Ayako Tanaka's success. Finally, while AI can generate creative concepts, the final 'human touch' remains crucial for truly great work.

🛠️ AI tools updates

Baidu claims its Ernie Bot beats OpenAI's ChatGPT on key A.I. tests

Baidu announced that its artificial intelligence model Ernie 3.5 has outperformed OpenAI's ChatGPT and GPT 4 in several critical areas. Unveiled in March and publicly tested in China, Ernie Bot is based on Baidu's foundational AI model, Ernie. The Chinese search engine stated that Ernie 3.5 surpassed ChatGPT in various benchmark tests and also outperformed GPT 4 in Chinese language tests. One of these tests involved standard admission and qualification exams required for college entry or qualifying as a lawyer, with Ernie 3.5 surpassing both ChatGPT and GPT 4 in Chinese.

Booking.com Launches New AI Trip Planner to Enhance Travel Planning Experience

Booking.com, a leading digital travel platform, has announced the launch of its new AI Trip Planner, which is set to enhance the travel planning experience by providing a conversational interface for trip planning. The AI Trip Planner, which leverages OpenAI’s ChatGPT API, allows users to ask general or specific travel-related questions at any stage of their trip planning process. This includes exploring potential destinations and accommodations, seeking travel inspiration tailored to the individual traveler's needs and requirements, and creating itineraries for specific regions.

💵 Venture Capital updates

AI model startup Reka raises $50 million led by DST Global Partners

Reka, an AI startup founded by former researchers from Alphabet's DeepMind, has raised $50 million in a funding round from investors including DST Global Partners and Snowflake, valuing the company, which has no revenue yet, at about $300 million. The company specializes in developing large and specialized AI models for enterprise customers and has announced a partnership with Snowflake that enables users to run third-party models like Reka within their Snowflake accounts.

Gleamer, which provides AI software for radiologists, raises $29.5M

Gleamer, a French startup founded in 2017, which develops AI software to assist radiologists in diagnosing conditions like bone trauma lesions, has raised €27 million ($29.5 million) in a Series B funding round. The company's main product, BoneView, serves as an AI companion for bone trauma x-rays and directs radiologists to potential anomalies in scans. They also have ChestView for detecting pulmonary pathologies.

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