“We always overestimate the change that will occur in the
next two years and underestimate the change that will occur in the
next 10.” These wise words from Bill Gates remind us not to
let ourselves be “lulled into inaction.” This sentiment
rings especially true when considering the transformative potential
of artificial intelligence (AI) in the business world.
Just as the advent of personal computers and the internet
revolutionized many sectors, including law, AI is poised to do the
same. But the changes won’t be as instantaneous as some
predict. Today, as part I of this multipart series, we’ll
explore AI, and its recent developments.
AI: What Is It?
AI, in its simplest form, is a diverse set of technologies
designed to mimic human-like cognitive functions that started
coalescing in the early 1950s. It uses various methods to analyze
data, predict patterns and adapt to perform tasks more efficiently
over time. Machine learning and deep learning – subsets of AI
– focus on developing algorithms that learn from and make
predictions or decisions based on data sets.
These processes have evolved from supervised learning,
where humans label data inputs before processing, to
unsupervised learning, where systems learn autonomously
without intervention, and now to reinforcement learning,
where systems learn by trial and error.
Deep learning employs artificial neural networks to process
complex data sets, closely mimicking the human brain’s
functionality. According to OpenAI’s CEO, Sam Altman, the AI
model for its ChatGBT4 product is made up of an astonishing 100
trillion neural networks.
Despite AI’s long history spanning more than 70 years, it
has faced numerous challenges, including the requirement for
billions of data elements, limited understanding, interactive
capabilities and lack of transparency. However, recent advancements
like the Generative Pretrained Transformers (GBT AI) have
significantly overcome these hurdles.
GBT AI: The Game Changer
GBT AI models like ChatGBT are pretrained with massive amounts
of data, usually harvested from the internet, and then fine-tuned
using reinforcement learning. This enables the models to generate
responses, which are then filtered through a content moderation
module before reaching the recipient. Unlike traditional models,
GBT AI continues to improve as it is fed more data, offering a
breakthrough in the field of AI.
The substantial improvements in GBT AI over successive versions
is a testament to its revolutionary potential. The system learns
from incremental changes, refining the data inputs, which
collectively have a significant impact. This mirrors Jeff
Bezos’ 2017 assertion that AI is a quiet yet meaningful support
system that propels substantial operations.
Understanding GBT AI’s Limitations
While GBT AI has made remarkable strides – and captured
the recent widespread attention of the media and businesses alike
– it is essential to recognize its limitations. These include
“hallucinations,” where the system confidently gives an
inaccurate, often fictional response, and the lack of real-time
adaptability. The model can also potentially perpetuate biases
present in its training data, and its decision-making process
remains opaque, often referred to as the “black box”
problem. These limitations mirror philosopher Michael Polyani’s
“Polyani’s Paradox” in humans, where we know more
than we can explain.
Ethical and Legal Considerations
While AI has the potential to transform various industries and
businesses significantly, it is vital to approach its deployment
with both ethical and legal considerations in mind. Given the
inherent limitations and possible biases within AI technologies,
it’s essential to apply them judiciously across different
business sectors, with a careful eye kept on risk management.
The use and application of AI, and GBT AI especially, must
include maintaining human oversight and adhering to ethical
standards to ensure fairness, transparency and compliance with laws
and regulations. For example, in the human resources area, New York
City recently enacted a law that requires companies that use an
automated employment decision tool to perform bias audits within
one year of the tool’s use, make information about the bias
audit publicly available, and notify employees and job candidates
that the company is using such tools to evaluate them. (read more about AI’s impact on HR on our
humanresourceslawblog.com)
Federal agencies are also starting to pay close attention to AI
and its impact on businesses, consumers and the workplace. In April
2023, officials from the Justice Department’s Civil Rights
Division, Consumer Financial Protection Bureau, Equal Employment
Opportunity Commission, and Federal Trade Commission jointly committed to enforcing laws and
regulations applicable to their agencies as they relate to AI.
As AI becomes increasingly prevalent in day-to-day life, the
agencies pledged to “vigorously use [their] collective
authorities to protect individuals’ rights regardless of
whether legal violations occur through traditional means or
advanced technologies.”
AI: The New Frontier and its Impact in Business
AI’s development and application to business is a fluid and
ever-evolving area, paralleling the dynamic nature of modern
business itself. Recent successes, such as AI algorithms achieving
remarkable benchmarks in various tasks, attest to the technological
strides made in this area.
However, it is important to note that these advancements must
not overshadow the importance of ethical considerations and
regulatory guidelines surrounding AI’s application – many
of which are yet to come.
As we continue to observe the ongoing evolution of AI, we may
reflect on the need for proactive engagement and foresight:
Let’s not be lulled into inaction, but rather stay ahead of the
curve, preparing for the changes that are yet to come. With
preparedness, vigilance and an unwavering commitment to ethical
principles, individuals and business owners can harness the power
of AI to revolutionize business practices and create new
opportunities for innovation and growth.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
