What corporations need to know about generative AI

AI is everywhere right now — but what does it actually mean for corporate strategy? This guide cuts through the hype to explain generative AI in practical terms: what it is, what it isn't, and how corporations should think about integrating it into their innovation roadmap.

In this series, TechNexus outlines ways corporations can stay innovative, defend against disruption, and better connect with startups.

Artificial Intelligence is all over the place right now. You can’t scan news headlines without seeing references to AI disrupting industries or someone using AI in a new and innovative way. But what exactly is AI? And what is generative AI? Most importantly, what do corporations need to know about how generative AI will impact their business? Read on for our second feature in our What Corporations Need To Know About series … this time, focused on Generative AI.

What is Generative AI?

Traditional artificial intelligence includes algorithms and models that analyze and classify existing data. Generative AI goes one step further, as it is designed to create (aka generate) new content, whether that be text, images, audio, or even code based on learned patterns. ChatGPT is currently the market leading and most well known GenAI tool; it was launched in June 2020 by OpenAI and immediately captured headlines based on its ability to quickly generate coherent and contextually relevant text.

GenAI models are trained on large datasets, including books, websites, and even user inputs for the technology to continuously improve its performance and output. The use cases for GenAI are broad – from writing content and blog posts to creating a meal plan and grocery list, and even putting together a high level business strategy.

What impact will GenAI have on corporations?

With broad applicability, GenAI will undoubtedly have a big impact on how work is done within big corporations. Experts can point to several areas where GenAI is already disrupting corporations: enhanced content creation, product and service innovation, improved customer service, data analysis and decision making, and AI powered training and coaching.

• Enhanced content creation: Tools like ChatGPT can significantly streamline the content creation process, and marketing departments are already incorporated this into their processes. Coca-Cola, for example, is using generative AI in its art and advertising, and it even hired a global head of generative AI to spearhead how the soda giant utilizes the new technology.
• Product and service innovation: GenAI can play a big role in product development and service innovation. By analyzing large amounts of data (including competitive analyses, market trends, and customer feedback), GenAI can suggest new product features or entirely new products, which can accelerate the innovation timeline and provide businesses with a competitive edge. Toyota uses generative AI to help design new cars, using the technology to help account for factors like drag, handling and ergonomics. More and more, corporations are also implementing AI capabilities into their own products; for example, Brunswick, a TechNexus partner, launched Boating Intelligence, an initiative to incorporate AI features into its products to deliver simpler, safer, smarter, and more sustainable boating.
• Improved customer service: We’ve all seen chatbots and virtual assistants powered by AI, and as the technology continues to improve, these tools become nearly identical to a human customer service representative. Companies like Mastercard use generative AI chatbots to reduce overhead costs and improve customer satisfaction.
• Data analysis and decision making: Data analysis is the bread and butter of AI. This next-level technology can be used to create synthetic data sets for training and refining models, which is particularly useful in scenarios where real data is scarce or sensitive. Predictive models are another huge asset of GenAI, and these can help business leaders make informed strategic decisions. BMW, for example, uses generative AI to analyze its enterprise data, helping its leaders make quicker decisions. 
• AI powered training and coaching: Onboarding and training new employees can be a huge commitment of both time and resources; many companies are looking to GenAI to supplement this process. For example, TechNexus portfolio company, LetterAI, leverages AI to help its customers accelerate revenue growth. The software can equip revenue teams with everything they need to close deals — from training & coaching to collateral to real-time help.

What’s the timeline?

The big looming question around GenAI is timing and adoption. Artificial intelligence, in general, and GenAI in particular require lots of computing power, which means advanced and expensive computer chips and data storage. As with any technology, adoption of GenAI also requires behavior and cultural change, as it will impact how employees work day to day. Additionally, GenAI is still a relatively new technology, so we have to evaluate the inherent risks associated with it. GenAI is not infallible; its outputs can be incorrect, misaligned, or just plain wrong. As such, the technology still requires a human operator, and it can be manipulated to emphasize biases or enable unethical or criminal activity.

With all of these unknowns and risks, corporations still need to lean in and embrace GenAI technology. Some of its impacts will be immediate, while others will come over the long term. We predict that the most successful corporations will prepare their businesses now for the role that GenAI can play in the future.

If you’re interested in learning more about what corporations need to know about GenAI, please reach out to Kaitlyn Doyle, VP at TechNexus.

By Kaitlyn Doyle at TechNexus Venture Collaborative