The world of artificial intelligence (AI) is seeing a lot of activity and challenges right now.
We’ve rounded up some of the latest in AI. Here’s a quick sneak peak at what’s contained within.
Gartner recently reported that 30% of generative AI projects are likely to be abandoned after their initial phase by 2025.
At the same time, Meta has launched its AI Studio to creators in the U.S., allowing them to create AI-powered chatbots for tasks such as caption creation and meme generation. This tool aims to boost user engagement on platforms like Instagram, Messenger, WhatsApp, and the web
The U.S. Commerce Department has backed “open-weight” AI models like Meta’s Llama 3.1, suggesting they are beneficial for small businesses and researchers. However, they recommend new ways to monitor these models for potential risks.
In another development, John Schulman, a co-founder of OpenAI, has left the company to join Anthropic, a competitor.
Let’s dive in together!
Report Predicts 30% of Generative AI Projects Will Be Abandoned After Proof Of Concept
Generative AI technology is the latest hot ticket in VC and beyond. But a new report is calling financial viability of these ventures into question.
Recently, Gartner released a report indicating about 30% of generative AI projects in enterprises will be abandoned after the proof-of-concept phase by the end of 2025. The report highlights several reasons for this high abandonment rate, including poor data quality, inadequate risk controls and escalating infrastructure costs.
We recently wrote about Magic, a generative AI startup currently working to bring their idea to market targeting a $1.5B valuation.
Suffice to say interest in this technology is quite high at this very moment.
But embracing generative AI on an organization-wide scale comes with substantial costs.
Gartner estimates that such initiatives can range from $5 million to $20 million. For instance, a simple coding assistant can cost between $100,000 and $200,000 upfront, with recurring costs of around $550 per user per year. More complex tools, such as AI-powered document search solutions, can cost up to $1 million upfront and between $1.3 million and $11 million per user annually
These high costs make it challenging for corporations to justify the investment, especially when the benefits are difficult to quantify and may take years to materialize—if they ever do.
Gartner’s analysis underscores the need for companies to carefully evaluate the potential return on investment (ROI) and the long-term value of generative AI projects.
Despite the substantial initial outlays, organizations that successfully implement generative AI have reported improvements in revenue, cost savings and productivity
Meta Rolling Out AI Studio for US Creators
Meta announced the rollout of its AI Studio to all creators in the U.S., allowing them to create personalized AI-powered chatbots.
Initially introduced last year and tested with select creators starting in June, the AI Studio is now broadly available.
Creators can use their own prompts or suggested templates to build chatbots for various purposes, such as caption creation, post formatting, or meme generation.
These chatbots can be utilized privately or shared publicly, working seamlessly across Meta properties like Instagram, Messenger, WhatsApp, and the web.
The AI Studio also enables creators to develop AI versions of themselves for fan engagement. These AI personas can quickly answer common direct messages and story replies, share facts about the creators, and link to favorite brands or past videos, enhancing interaction and engagement with fans. Creators have control over the topics and links the chatbot addresses and can turn auto-replies on or off, determining who the AI responds to
Mark Zuckerberg has emphasized the potential of these AI avatars to help creators meet their business objectives.
He believes that AI systems reflecting creators’ values and goals can significantly enhance community outreach and engagement
US Commerce Department Endorses ‘Open’ AI Models
The U.S. Commerce Department recently issued a report endorsing “open-weight” generative AI models like Meta’s Llama 3.1 while recommending the development of new government capabilities to monitor potential risks associated with these models.
The report, authored by the National Telecommunications and Information Administration (NTIA), emphasized that open-weight models democratize access to generative AI, benefiting small companies, researchers, nonprofits, and individual developers.
Consequently, the report advises against imposing restrictions on access to open models without first investigating the potential market impacts of such restrictions
This stance aligns with comments from FTC Commission Chair Lina Khan, who supports the idea that open models foster competition by enabling smaller players to bring innovative ideas to market. Alan Davidson, Assistant Secretary of Commerce for Communications and Information and NTIA Administrator, highlighted the dual importance of open AI systems for competition and innovation, while also calling for active risk monitoring.
“NTIA’s report recognizes the importance of open AI systems and calls for more active monitoring of risks from the wide availability of model weights for the largest AI models. Government has a key role to play in supporting AI development while building capacity to understand and address new risks” – Alan Davidson, Assistant Secretary of Commerce for Communications and Information and NTIA Administrator
This report comes at a time when both U.S. and international regulators are contemplating new regulations for AI.
For instance, California is nearing the passage of bill SB 1047, which would require companies training models using more than 1026 FLOPs of compute power to enhance cybersecurity measures and develop shutdown mechanisms for model copies.
In Europe, the AI Act imposes new rules on copyright, transparency, and AI applications.
Meta has expressed concerns that the EU’s AI policies may hinder the release of some open models in the future. Similarly, several startups and large tech companies have opposed California’s proposed law, arguing that it imposes excessive burdens.
The NTIA’s governance philosophy on AI models is not entirely laissez-faire. The report recommends that the government establish a continuous program to gather evidence on the risks and benefits of open models, evaluate this evidence, and take appropriate actions, including possible restrictions if necessary.
The NTIA suggests the government should research the safety of various AI models, support risk mitigation research, and develop risk-specific indicators to inform policy changes.
Open AI Co-Founder Schulman Exits, Brockman Takes Extended Leave
John Schulman, a co-founder of OpenAI, has left the company to join rival AI startup Anthropic. OpenAI also confirmed that its president and co-founder, Greg Brockman, is taking an extended leave until the end of the year to “relax and recharge” after nine years with the company.
A spokesperson from OpenAI expressed gratitude for Schulman’s contributions, highlighting his role in advancing alignment research and building a strong foundation for future innovations.
Schulman himself posted on X, explaining that his decision was driven by a desire to deepen his focus on AI alignment—the science of ensuring AI behaves as intended—and engage in more hands-on technical work at Anthropic. He expressed confidence that OpenAI and the teams he was part of would continue to thrive without him.
Schulman, who completed a PhD in electrical engineering and computer sciences at UC Berkeley, played a pivotal role in developing the AI-powered chatbot platform ChatGPT by leading OpenAI’s reinforcement training organization.
Following the departure of AI safety researcher Jan Leike, Schulman headed OpenAI’s alignment science efforts and was a member of the company’s safety committee.
Despite ongoing controversies surrounding OpenAI’s approach to AI safety research, Schulman clarified that his departure was not due to a lack of support from the company. He stated that OpenAI’s leadership has been committed to investing in alignment research and that his decision was based on personal career goals.
With Schulman’s exit, only three of OpenAI’s 11 original founders remain: CEO Sam Altman, Greg Brockman, and Wojciech Zaremba, who leads language and code generation.
Altman publicly thanked Schulman on X, praising him as a brilliant researcher, a deep thinker, and a great friend and expressed that Schulman would be missed.
Final Thoughts on AI News
These events highlight the fast-paced and complex nature of the AI industry, where new technology, regulations, and key personnel changes are shaping its future.
We’re living during an exciting time for AI, but it’s really just the beginning.
Meta’s answer to open-source AI just launched, which will have a major impact on the marketplace if Zuckerberg’s prediction of becoming the number one assistant in a year’s time holds true.
Exciting AI-based startups like Magic, Poolside and Placer.ai are raising a lot of money right now, even if Gartner’s prediction sheds uncertainty on the future.
What do you think about this AI roundup? Let us know in the comments below.
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