Rethinking AI Strategies: Diminishing Returns and Potential Tariffs

OWITH.ai - Only What's Important to Hear around AI and Tech

Good morning from OWITH.ai: the podcast that gives you only what's important to hear in AI and tech world.Gary Marcus has been warning for years that the current approach to AI, specifically Large Language Models (LLMs), is reaching a point of diminishing returns. Recent statements from industry insiders like Marc Andreesen are confirming this, with concerns that improvements in LLMs are slowing down. The high valuations of companies like OpenAI and Microsoft, based on the idea that LLMs will eventually achieve artificial general intelligence through scaling, may not be realistic. The economics of continued scaling are grim, with diminishing returns leading to increased costs and potential price wars in the market. Despite warnings from scientists like Marcus and others, the media and US AI policy have largely been driven by hype around LLMs, potentially putting the country at a disadvantage if other approaches are not explored. Marcus suggests that it may be necessary to rethink AI strategies to achieve reliable and trustworthy AI in the future. The acknowledgment that LLMs have reached a limit is a step towards making real progress in the field of AI.Since the election of Donald Trump as the 47th President of the United States, the U.S. stock market has been rallying, but in Europe, business leaders are less optimistic. Concerns are rising about potential Trump tariffs on imports, which could have a significant negative impact on European industries like steel, food, beverage, and agriculture. Swiss-American economist Richard Baldwin warns that Europe could face tariffs not seen since the 1930s, and China's retaliation could also harm European markets. There are also worries about potential geopolitical crises induced by Trump's actions. Despite these challenges, some European businesses may benefit from deregulation and lower taxes by moving operations to the U.S. Meanwhile, Fed Chair Jerome Powell stated that he would not resign if asked by President-elect Trump, and Goldman Sachs predicts a 20% increase in M&A activity under the incoming Trump administration. Sam Altman made a significant purchase involving OpenAI shares. The Fortune Global Forum will discuss the "new global order," with speakers including Mike Pompeo. This email from Deloitte highlights the evolving learning and development needs of today's workforce, emphasizing the importance of blending human and tech skills for future success.

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