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- Hottest Job in Corporate America? The Executive in Charge of AI
Hottest Job in Corporate America? The Executive in Charge of AI
Also: Microsoft, Google ride AI wave as revenues surge
AI KATANA
January 30, 2024
Hi!
In today's newsletter, we delve into the evolving landscape of artificial intelligence in the corporate world. The Chief Artificial Intelligence Officer (CAIO) role is gaining prominence across various sectors, tasked with leveraging AI to enhance operations and ensure data security. In financial news, Microsoft and Google report significant revenue surges, primarily attributed to their investments in AI and cloud services. Meanwhile, Google and Enterprise Singapore have teamed up to launch an accelerator for generative AI startups, signifying a boost for the AI startup ecosystem in Singapore. In mergers and acquisitions, the application of generative AI, though currently limited, shows promising growth potential. Tencent, facing challenges in its gaming business, is turning to AI for competitive advantage. Additionally, OpenAI's collaboration with Common Sense Media focuses on AI's safe integration in children's education, and Nvidia's investment in AI chatbot maker Kore.ai reflects a strong commitment to AI advancement in the venture capital sector.
Sliced:
🔥 Hottest Job in Corporate America? The Executive in Charge of A.I.
📈 Microsoft, Google ride AI wave as revenues surge
🦾 Google, EnterpriseSG launch accelerator for generative AI startups in Singapore
🧑💼 Generative AI in M&A: Where Hope Meets Hype
⚠️ Tencent chief says gaming business under threat, catching up in AI
The role of Chief Artificial Intelligence Officer (CAIO) is becoming increasingly prominent in various sectors like healthcare, finance, and education. These executives are responsible for leveraging AI technology to enhance business operations, ensuring data security, and managing AI's transformative impact. The Mayo Clinic, for example, appointed a radiologist as its CAIO to develop AI models for medical diagnosis. Other organizations, including law firms, insurance companies, and educational institutions, are also adopting similar roles, reflecting the growing integration of AI into corporate strategy and operations.
Microsoft and Google have reported substantial revenue increases, largely attributed to their investments in AI and cloud computing services. Microsoft's sales surged to $62 billion in the October-December period, an 18% year-on-year rise, driven by their Azure cloud services, which saw a 30% revenue jump due to greater computing needs for AI. This growth has propelled Microsoft past Apple in market capitalization. Similarly, Google, under its parent company Alphabet, posted a $20.7 billion profit on $86.3 billion revenue, with significant contributions from YouTube and its cloud unit. This performance is mainly attributed to ad revenues and AI advancements.
Google and Enterprise Singapore have launched an accelerator to support 100 Singapore-based generative AI startups over three years. These startups, at various stages from seed to Series B, will access Google Cloud’s AI technology, including pre-trained models, and receive mentorship from Google’s teams and startup-ecosystem partners. The first batch of 20 startups will participate in a three-month program and receive up to US$350,000 in Google Cloud credits. Additional support includes potential funding from EnterpriseSG’s Startup SG Tech grant, emphasizing the growing AI startup ecosystem in Singapore.
The use of generative AI in M&A is currently limited, but expected to grow significantly. Currently, 16% of M&A practitioners use generative AI, mainly for target identification and document review, with 85% meeting or exceeding expectations. The technology's adoption is anticipated to increase to 80% over the next three years. Despite these advantages, challenges such as data inaccuracy and understanding how to leverage generative AI for competitive advantage remain. Future effectiveness in M&A will depend on strategic use of generative AI, emphasizing the importance of data accuracy and proprietary insights.
Tencent, the world's largest gaming company, is facing significant challenges in its gaming business from competitors. The CEO, Pony Ma, acknowledged the need for catching up in AI development to maintain its leading position. Despite strong revenues from games like "Honor of Kings," newer products are underperforming. Tencent is focusing on integrating AI to enhance efficiency, rather than rushing AI-based products to market. There's also an emphasis on evolving their social network WeChat for new revenue streams, particularly in live-streaming e-commerce.
🛠️ AI tools updates
OpenAI has partnered with Common Sense Media to integrate AI in children's education and safety. This collaboration aims to create kid-friendly AI options and educate about AI use. It includes developing AI guidelines and educational materials and curating a family-friendly section in OpenAI's GPT Store, adhering to Common Sense's ratings and standards. The partnership, announced at a summit, addresses concerns around AI in education, with an emphasis on proper usage and the potential to elevate learning levels.
💵 Venture Capital updates
Nvidia has invested in AI chatbot maker Kore.ai as part of a $150 million funding round. This investment aligns with Nvidia's strategic focus on AI, given its reliance on their high-end chips. Kore.ai plans to utilize this funding to develop more virtual assistants for global brands. Its clientele includes notable companies like Coca-Cola, Airbus, and Roche Holding. The investment is a significant endorsement for Kore.ai, which is experiencing rapid revenue growth and plans for an IPO in about two years. Kore.ai's technology is automating 450 million daily interactions, impacting around 200 million consumers.
🫡 Meme of the day
⭐️ Generative AI image of the day
Before you go, check out 71% of musicians fear AI: study.
