Will generative AI be bigger than the internet?
The global investment bank J.P. Morgan is following generative AI (GenAI) as a potential investment opportunity for its clients, which include many of the world’s wealthiest institutions and individuals. What they’re reporting, therefore, bears note.
In “Is generative AI a game changer,” J.P. Morgan writes, “The advent of generative AI is a seminal moment in tech, more so than the Internet or the iPhone.”
Whoa! Pause a minute to consider that stunning statement. Knowing how the internet and smartphones have impacted society at large, to say nothing of business and commerce, over the past 20 to 30 years, what does that say about the potential for GenAI?
The coming GenAI productivity boom
Quite a bit. In the words of J.P. Morgan, “We see the potential for a massive workforce productivity boom over the next one to three years, which could affect the shape of the economic cycle.” The firm’s research estimates generative AI could increase global GDP by $7–10 trillion, or by as much as 10%.
With so much on the line, large enterprises are under immense pressure to figure out how best to use GenAI to enhance their operations, expand their markets and revenue opportunities, and/or reduce their costs.
Northern Light is seeing this dynamic at work throughout our Fortune 1000 client base. Many are deploying generative AI first as an embedded add-on in established enterprise applications. One of these is Northern Light SinglePoint™, a knowledge management platform optimized specifically for market and competitive intelligence (CI) research. Using the generative AI-based question answering feature in SinglePoint, called AI Insights, users have dramatically reduced the amount of time (down from two hours to 20 seconds!) and improved the quality of their first pass at their CI research assignments… and, at the same time, demonstrated to their senior leaders the efficacy of generative AI as a valuable new technology.
J.P. Morgan’s assessment of generative AI’s initial “sweet spots” is consistent with other analysts. In their report, they identify marketing (28%), followed by legal services and insurance (21%), media (20%), data analytics (18%) and then consumer technology (13%) as the settings that represent the greatest near-term opportunity for GenAI in business.
Enterprise deployments will drive the GenAI market
Uptake of generative AI in business is sure to be a major demand driver for companies that provide both the software and hardware infrastructure AI deployment requires. So positive “early adoption” experiences by large enterprises will be vital to propelling the GenAI market forward and accelerating the growth (and profitability) of tech providers enabling the market.
Given how bullish J.P. Morgan is on generative AI as an investment opportunity, you can bet they’re rooting for Northern Light (and lots of other vendors) to prove the worth of GenAI technology at the world’s largest companies. We’re off to a strong start.