Decoding tomorrow's tech, today

Dear tech friends,

Welcome to the latest edition of BCG X Files, our monthly tech-focused BCG X LinkedIn newsletter.

Spotify took around 150 days to reach a million users, Instagram about half that time, and ChatGPT? A mere five days. This rapid uptake underscores the growing interest in AI, especially with the emergence of GenAI tools. ChatGPT, once an innovation, has now become a household name, reflecting the growing public fascination with AI.

In a world where AI-driven solutions are becoming increasingly integrated into our daily lives, it's essential for businesses and leaders to grasp not only the potential benefits but also the concerns of consumers.

Our recent survey of 21,000 people in 21 countries on how they really feel about GenAI sheds light on this dynamic, revealing surprising levels of knowledge and enthusiasm about AI.

An impressive 82% of respondents globally are aware of GenAI, with a quarter of them having already tried it out. But there's a difference in how they feel: while 70% are excited about using it in the workplace, only 43% feel the same about using it in their personal lives. Regionally, enthusiasm is higher in Asia and emerging markets, while those in mature markets like the US and Europe are a bit more cautious.

As leaders navigate the dynamic world of GenAI, it's crucial to focus on building trust, effectively managing the waves of misinformation, enthusiasm, and concern, while also seizing the potential in AI-friendly markets.

Delve deeper into the complex relationship between consumers and AI, and learn how leaders can effectively navigate this constantly evolving landscape here.

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Enjoy!

-Sylvain Duranton, Global Leader of BCG X

BCG Announces Collaborations with NASA and USRA to Launch a Generative Artificial Intelligence Lab for Science and Engineering | BCG - 2 min read

BCG, in collaboration with NASA Ames Research Center and USRA, is launching a Generative AI lab focused on advancing technologies in earth science. Leveraging extensive experience and a diverse range of expertise from industry, government, and academia, BCG X, NASA, and USRA will conduct research, development, testing, and evaluation of GenAI technologies, as well as analyze the growth of responsible GenAI technologies.

Looking for AI Use-Cases | Benedict Evans - 12 min read

Tech analyst Ben Evans highlights the struggle in applying LLMs like ChatGPT to real-world tasks, citing the difficulty in finding historical data even for seemingly simple queries. He emphasizes the need for specialized applications developed by a new wave of software developers to fully harness the potential of these AI models, rather than relying on them as one-size-fits-all solutions.

An AI Startup Made a Hyperrealistic Deepfake of Me That’s So Good it’s Scary | MIT Technology Review - 18 min read

“When the first one starts playing, I am taken aback. It's as painful as seeing yourself on camera or hearing a recording of your voice. Then I catch myself. At first I thought the avatar was me.” An MIT Technology Review piece on new technology from the startup Synthesia, and what big questions it raises about a world where we increasingly can’t tell what’s real.

Microsoft’s Phi-3 Shows the Surprising Power of Small, Locally Run AI Language Models | Ars Technica - 3 min read

Microsoft's new Phi-3-mini AI model, with 3.8 billion parameters, competes with larger models like GPT-3.5, showing that careful data curation can enable smaller models to perform similarly while using fewer resources. Phi-3-mini can run on consumer devices like smartphones and laptops, suggesting a move towards energy-efficient "small language models" for everyday tasks without heavy GPUs.

Beyond Neuralink: Meet the Other Companies Developing Brain-Computer Interfaces | MIT Technology Review - 5 min read

Several companies besides Neuralink are developing brain-computer interfaces, each with different approaches and levels of invasiveness. While these devices hold promise for restoring function for those with physical impairments, they are still primarily intended for medical applications and are not yet ready to "expand human capabilities" as Neuralink has claimed.

‘Artificial Sun’ Sets Record for Time at 100 Million Degrees in Latest Advance for Nuclear Fusion | CNN - 3 min read

Scientists in South Korea have set a new world record for sustaining nuclear fusion plasma at 100 million degrees Celsius for 48 seconds, an important step towards the development of fusion energy as a potential climate solution. However, commercializing nuclear fusion remains a long way off as scientists continue to work on solving complex engineering and scientific challenges.

AI-Related Risks Test the Limits of Organizational Risk Management | BCG & MIT Sloan Management Review - 9 min read

For the third year, BCG and MIT SMR gathered AI experts to study responsible AI implementation globally. This year, with the EU's AI Act in place, the focus is on how organizations handle AI risks, providing insights and recommendations based on findings and RAI initiatives.

What does AI Mean for a Responsible Business? | Financial Times - 20 min read

The rise of AI sparks enthusiasm and worries. 52% of FT Moral Money readers cite loss of consumer trust as the top risk of irresponsible AI. This underscores the urgency for companies to establish strong governance frameworks, tackling issues like data privacy, bias, and transparency. Doing so is vital to uphold public trust and achieve sustainability objectives.

How to Make AI Equitable in the Global South | Stanford Social Innovation Review - 8 min read

This piece outlines five key practices for international development practitioners to build more gender-equitable AI systems in the Global South, including working to build representative datasets, meaningfully engaging target users, tracking and controlling for gender in algorithms, prioritizing transparency, and conducting ongoing risk assessments.

Xaira, an AI Drug Discovery Startup, Launches with a Massive $1B, Says it’s ‘Ready’ to Start Developing Drugs | TechCrunch - 2 min read

A new AI-powered drug discovery startup, Xaira, has launched with $1 billion in funding to harness the power of generative AI and revolutionize the development of life-saving drugs. Led by a renowned scientist, Xaira aims to leverage cutting-edge AI to create treatments that were previously impossible, potentially transforming the lives of patients in need.

US Farms are Making an Urgent Push into AI. It Could Help Feed the World | BBC - 8 min read

American farmers are embracing AI to tackle labor shortages, boost yields, and enhance sustainability amidst climate change. Companies like John Deere are pioneering AI tools, like autonomous tractors and precision farming techniques, set to revolutionize productivity and environmental practices, nationally and globally.

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