Clark Parsons’ Post

In the rapidly evolving field of generative Artificial Intelligence (genAI), are we adequately addressing competitive dynamics to ensure safety & innovation? In my new Centrum für Europäische Politik study, co-authored with my colleague Dr. Matthias Kullas, we look at the entire value chain of genAI services and highlight the urgent need for vigilant competition policy and the strategic promotion of an environment conducive to innovation and diversity in this sector. Our investigation begins with the characteristics of the genAI infrastructure, highlighting the critical role of large datasets and massive computing power in the development and deployment of basic models. We identify significant barriers to entry, in particular the “winner-takes-most” market dynamics prevalent in the foundation model arena, where significant economies of scale and scope, as well as scaling laws (“emerging capabilities” of genAI), favour incumbents, stifling the vibrant competition essential for innovation and market diversity. In addition, we explore the downstream implications of genAI deployment, highlighting the challenges faced by new entrants in competing with BigTech firms with privileged access to cutting-edge models, scarce human capital, and cloud service space. The emergence of “app store” models for genAI, similar to those pioneered by OpenAI, could further concentrate market power. Our analysis goes beyond mere market mechanics, arguing for a holistic approach to EU competition policy that integrates resilience considerations and takes into account the broader societal, ethical, and security implications of genAI. These include potential risks to democratic discourse, the proliferation of deepfakes, and the recent use of genAI in malicious services, highlighting the need for a regulatory framework that balances competition with the protection of societal values. For a deeper dive into our findings and policy recommendations, which we submitted yesterday to the European Commission as part of its public consultation on “Competition in Generative AI”, access the full paper here: https://lnkd.in/eCfXz8-9 #GenAI #CompetitionLaw #DigitalResilience #EU

Just had a great interview with Andi Lüscher of SRF - Schweizer Radio und Fernsehen Börse at the World Economic Forum in Davos. We discussed how artificial intelligence (AI) is taking center stage at #WEF, and why Switzerland, as the world's most innovative country, is a global leader in concrete AI applications! At Microsoft Switzerland, we're driving the AI revolution with over 200 customers already leveraging our cutting-edge services. 🚀 Not to mention, we've DOUBLED our datacenter capacity in just the last two years! 📈 It's incredible to witness the impact of AI across various sectors in Switzerland. Exciting times ahead as we continue to drive innovation and empower businesses with the transformative potential of responsible AI! 💡 Have a listen: https://lnkd.in/exTdrr4H #MicrosoftSwitzerland #AIInnovation #TechLeadership

📢 Let's dive into the fascinating world of the AI start-up Mistral to uncover what lies behind the hype! Check out this captivating article published by WiWo, one of Germany's leading business magazines, to get an exclusive insight into Mistral's journey: https://lnkd.in/d7Ve5thb 💡 The article delves deep into Mistral's innovative approach, exploring how they are leveraging AI to tackle complex problems and transform various sectors. Discover the key factors that distinguish Mistral from other AI start-ups and learn about the strategies they employ to stay ahead in this fiercely competitive field. Are you excited about the opportunities AI start-ups like Mistral can bring? Join the conversation on the future of AI and share your thoughts in the comments below👇 #AI #StartUp #Innovation #Technology #ArtificialIntelligence #Mistral #WiWo

News! The Austria Wirtschaftsservice (aws) has announced new AI grants as part of their "AI Unternehmen und Wachstum" initiative, focusing on trustworthy Artificial Intelligence (AI) with an emphasis on climate protection. ℹ️ Details: AI-Start: Green: Up to EUR 15,000 for initial AI implementation AI-Adoption and AI-Adoption: Green: Up to EUR 150,000 for innovative AI projects AI-Wissen: Up to 20 aws consulting hours and up to EUR 20,000 for knowledge building, with a focus on human capital including AI training and certification. 📅 Save the Date: Join the digital Infohour on 9.2.2024, 11:00-12:00 to learn more about the AI-Adoption and AI-Adoption: Green programs. Register here: https://lnkd.in/dRTE7H5P Spread the word in your network and take advantage of these opportunities for AI-driven growth and innovation! For more information, visit: #AI #Grants #Innovation #Entrepreneurship #ClimateProtection #TUWien #i2c

GEN AI: TOO MUCH SPEND, TOO LITTLE BENEFIT? Goldman Sachs warns that despite huge investments in generative AI, companies are yet to demonstrate a killer application. Will the AI bubble burst soon? Tech giants, other companies and utilities are investing an estimated $1 trillion in data centers , GPUs , network expansion and other AI infrastructure in the coming years , writes investment bank Goldman Sachs in a new report . But so far, this spending has yielded little, aside from reports of efficiency gains among developers. "So the key question is: What $1 trillion problem will AI solve?" says Jim Covello, head of research at Goldman Sachs. "Many people try to compare AI today to the early days of the Internet. But even in its early days, the Internet was a low-cost, technological solution that enabled e-commerce to replace costly incumbent solutions." Given the high barrier to entry and the price trend of key components such as GPUs, Costello is skeptical that the cost of AI will ever drop enough to make automating a large portion of tasks affordable. "The market is too optimistic about the likelihood of cost reductions," he says. His colleague Kash Rangan has a longer view: "Every IT cycle follows a process known as IPA - infrastructure first, platforms second, and applications last. The AI cycle is still in the infrastructure build-out phase, so it will take some time to find the killer application, but I believe we will get there." What do You think? https://lnkd.in/dpYt8HSc #GoldmanSachs #GenAI #CostBenefit #KillerApplication #Bubble #IPA

📰 Today in NZZ https://lnkd.in/e-TbaRYV, I highlighted Microsoft Switzerland's AI-driven innovation journey, envisioning a shift in how we work and live. AI opens doors to solutions for previously unsolvable challenges, placing people at the core of this transformation. 🤖 Copilot, our game-changing AI assistant, is revolutionizing work dynamics. According to new data http://aka.ms/WTI23, 77% won't part with it, reporting increased productivity (70%) and improved work quality (68%). Users were 29% faster overall in experiments. 🌐 Notably, over 75 major Swiss companies and more than 100 Microsoft for Startups are already utilizing our Microsoft Azure OpenAI solutions, a testament to the transformative power of AI in Switzerland. 🔍 Ethical AI development is our cornerstone—privacy, transparency, and fairness guide us. We're committed to seamlessly empowering users. Catch me speaking more on this topic at the Swiss Innovation Forum this Thursday! #MicrosoftInnovation #CopilotAdvantage #DigitalTransformation #SwissInnovationForum 🚀

The German AI hope should have never been Aleph Alpha. My comments in today’s Frankfurter Allgemeine Zeitung. Don’t get me wrong in many ways they have been front runners in the Age of AI but ever since OpenAI’s ChatGPT they are losing out more and more not being able to compete with the resources and the talent of the big ones. They have used to story of being the German AI hope to their advantage and slowly people are getting impatient and worried. The voices in the world of AI grow ever more vocal being disappointed about the performance of their models. And I can understand them the last time a startup was similarly hyped, this close to politics and failed to meet the expectations it hurt the German tech image and the respective startup scene a lot. This should not repeat but if companies do not want to invest in AI anymore because expectations are not met and trust is lost than hope turns to menace and this should be avoided. The true race of AI is not so much who can built the best LLM but how to use them or AI in general to create sustainable value something the German economy needs much more. The economy is our real AI hope not any startup. Just think about the pressure this creates but when you use this story line for lobbying and fundraising I do not wonder that people like to watch closely. With the AI Act many features Aleph Alpha marketed as competitive advantage will become minimum requirements with the AI Act. So the new model better be good or Aleph Alpha will face a hard time. Luckily they managed to secure very good partnerships and investors that they now have to start to leverage and create real value for their end users. Let’s wait for the next weeks but the pressure is mounting. Thanks for the great article and analysis of the market Maximilian Sachse and great to see the insights of Elisabeth L'Orange

🚀 AI revolution at Axel Springer 18/n 🚀 Today, Welt hosted its first AI summit, held under Chatham House Rules. However, several participants and speakers have given us permission to share some quotes. Here is our first report: https://lnkd.in/dg8SkeBe

🗞️ Jeannette and Viet were featured in Handelsblatt - check out what they have to say about our recent Series A investment in Mistral AI. As quoted in the article, "The new funding gives us [Mistral] the opportunity to shape the AI revolution from Europe". Dive into the full story here 👇