Macroeconomic & Geopolitical

Will ChatGPT Lead the AI Revolution?

March 2023 – 10 min read

It’s official—artificial intelligence (AI) is back! The hype surrounding the rise (then fall) of crypto currencies, Web 3.0 and the all-too-early excitement around the Metaverse had stolen the limelight from AI over the past couple of years. However, summer 2022 marked a highly significant return to the headlines for it.

A branch of AI research, called Generative AI, reached a tipping point for producing incredible results: generating images and writing text responses to user prompts that were beyond the sophistication and accuracy of anything produced by machines in the past. Automated image creation services such as Stable Diffusion and OpenAI’s DALL-E 2 were followed by OpenAI’s release of a free-to-use text chatbot, ChatGPT. Users ask it a question and the bot will return an answer based on its ‘understanding’ of the data corpus it has been trained upon. The results, ranging from answers to essay questions, to writing song lyrics in the style of Taylor Swift, have been nothing short of remarkable and, even if they are not always correct, have captured the imagination of both casual and professional users alike.

This paper follows our work on the disruptive potential and broad productivity gains from widespread adoption of technology generally, and AI specifically. We will discuss the incredible breadth of possible use cases for automating digital tasks, including querying any data for answers, writing reports, creating images, correcting computer code and even composing music.

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Matthew Ward

Managing Director, Global Equities—Technology

Colin Moar

Director, Global Equities—Technology

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