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Microsoft secures nonvoting board seat at OpenAI

Also: How AI will change investment and research

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AI KATANA
November 30, 2023

Hi!

In today's newsletter, we delve into several pivotal developments in the AI sector. Microsoft has gained a nonvoting board seat at OpenAI, a move that formalizes their relationship, particularly after Microsoft's $13 billion investment in the AI firm. This development comes amid significant changes in OpenAI's board and the temporary dismissal of CEO Sam Altman. In the investment world, Juan Luis Perez highlights AI's transformative impact on financial markets, warning of potential risks while acknowledging its benefits in hypothesis testing and financial analysis. The labor market is also undergoing a shift with the advent of AI-powered 'digital colleagues', posing a threat to previously 'safe' jobs in various fields. On a cautionary note, Microsoft President Brad Smith dismisses the near-term emergence of super-intelligent AI, emphasizing the current focus on AI safety. Meanwhile, Mastercard introduces 'Shopping Muse', an AI-driven personal shopping assistant, showcasing AI's increasing role in consumer activities. In a significant investment move, Microsoft commits $3.2 billion to the UK, aiming to boost AI growth, amidst LinkedIn's venture into AI-enhanced profiles, which has received mixed reviews for its effectiveness and personalization. These diverse updates reflect the rapidly evolving landscape of AI and its multifaceted impact across different sectors.

Sliced:

  • 🧑🏽‍💼 Microsoft secures nonvoting board seat at OpenAI

  • 📈 How AI will change investment and research

  • 👷🏽‍♀️ AI-powered digital colleagues are here. Some 'safe' jobs could be vulnerable.

  • 🤖 Microsoft president says no chance of super-intelligent AI soon

  • 💳 Mastercard Debuts AI-Powered ‘Muse’ to Offer Shoppers Inspiration

Microsoft has secured a nonvoting board seat at OpenAI, as announced by the company. This move addresses some lingering questions about Microsoft's involvement with the startup, following a tumultuous period where OpenAI's controlling nonprofit board fired and then re-hired CEO Sam Altman. OpenAI's relationship with Microsoft has been significant, particularly after Microsoft's $13 billion investment into OpenAI and the integration of its AI models into Microsoft programs. The appointment of a Microsoft representative to the board, albeit in a nonvoting capacity, marks a formal recognition of this relationship. Additionally, OpenAI's board has undergone significant changes, with several members, including co-founder Ilya Sutskever, leaving the board. The reasons behind Altman's temporary dismissal remain unclear, but issues surrounding AI safety and development pace may have been factors. This development in corporate governance is a pivotal moment in the evolving partnership between OpenAI and Microsoft.

The Financial Times article, written by Juan Luis Perez, a former global head of research at Morgan Stanley and UBS, discusses the transformative impact of AI on investment and research. Perez emphasizes the power and potential risks of AI in financial markets. He argues that while AI, particularly generative AI, democratizes access to financial analysis, it also increases market uncertainty. AI can generate plausible analyses and data, potentially challenging traditional financial intermediaries' perspectives. However, overreliance on AI, as Perez cautions, could replicate past errors where powerful models were influenced by context, leading to significant financial misjudgments. He also notes that sophisticated firms could fall under the spell of AI models excellent at explaining the past but insensitive to new uncertainties. Despite these risks, Perez sees generative AI as a beneficial tool for testing various hypotheses at low costs. Yet, he acknowledges the need for substantial investment in infrastructure and diverse expertise to effectively leverage AI in large research outlets. Perez concludes by suggesting that the future ecosystem of investment and research will be vastly different, with imaginative professionals and large firms finding new ways to use AI, albeit with the necessary addition of new skills and disciplines.

This article article discusses the growing impact of AI-powered digital colleagues on the job market, highlighting that even jobs previously considered "safe" from automation are now at risk. The advent of generative AI tools like OpenAI's ChatGPT has accelerated this trend, with predictions that such technologies could boost global GDP by 7% while potentially replacing 300 million full-time workers. This shift is particularly significant in knowledge-work jobs, including creative fields like marketing, music production, and graphic design. The article features examples like Artisan AI's "Artisan" digital workers, which are designed to integrate seamlessly into human teams, automating tasks like sales and boosting productivity. This advancement in AI technology raises concerns about the future of white-collar jobs and the broader economic and societal implications, including the need for regulatory oversight and societal choices on AI integration in various industries.

Microsoft President Brad Smith states that there is no chance of creating super-intelligent AI, also known as Artificial General Intelligence (AGI), within the next year. He asserts that such an advancement in AI, where computers surpass human intelligence, will take years, if not decades. Smith's comments come in the context of Microsoft's involvement with OpenAI and the release of ChatGPT, which has sparked significant investment and concerns about AI's potential impact on humanity. Despite these concerns, Smith emphasizes the importance of focusing on safety in AI development now. The article also touches upon internal dynamics at OpenAI, noting that Sam Altman was briefly ousted from the company by its board but was quickly reinstated following public outcry from employees and shareholders.

Mastercard has launched a new generative AI tool called Shopping Muse, designed to act as a personal shopping assistant. Developed by Dynamic Yield, a unit of Mastercard, Shopping Muse aims to enhance the online shopping experience through personalization and AI-driven innovation. The tool is capable of understanding a user's colloquial language and converting it into personalized product recommendations, including suggestions for product combinations and accessories. These recommendations are tailored based on the consumer's profile, intent, and preferences, using keywords, visual cues, and individual affinity. This innovation reflects the growing use of AI in everyday consumer activities, including shopping, by offering a more immersive and tailored online shopping experience.

🛠️ AI tools updates

Microsoft announced a significant investment of £2.5 billion ($3.2 billion) in the United Kingdom over the next three years, marking its largest investment in the country to date. This move aims to spur growth in AI and comes despite earlier concerns expressed by Microsoft about the UK's tech industry environment. The funding will more than double Microsoft's datacentre footprint in Britain, vital for new AI models. The deal also includes bringing over 20,000 advanced Graphics Processing Units to the UK, crucial for machine learning and AI development. Additionally, Microsoft plans to implement a training program to enhance AI-related skills in Britain.

💵 Venture Capital updates

Launched in 2023 and powered by OpenAI's GPT-4 model, this feature assists premium subscribers in crafting headlines and "about" sections. Despite the tool's potential to ease profile writing, user feedback indicates that the AI-generated content often feels generic and sometimes factually incorrect. LinkedIn reports that about 70% of users who try the feature apply the suggested changes, either as-is or with modifications. However, users like Pete DeOlympio and Morgan Short express concerns about the AI's lack of personality and its tendency to create bland, sometimes inaccurate content. The article emphasizes the importance of users critically reviewing and editing AI suggestions to ensure accuracy and personal touch. LinkedIn acknowledges the need for ongoing improvements in the AI's tone and accuracy, and is exploring further AI applications, such as personalized feed summaries, writing posts, and job connection facilitation.

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