Navigating the Generative AI Landscape: From Hype to Safety

Generative AI, the latest generation of AI technology, has the potential to add significant economic value across industries. While previous generations of AI focused on predicting specific outcomes, generative AI lacks reasoning abilities and is prone to hallucinations. It is most useful in democratizing knowledge and creativity through augmentation, boosting productivity in domains with a high tolerance for risk. However, when error elimination is the objective, generative AI can be a risky proposition. Leaders must understand when to rely on different technologies and their specific roles in substituting, augmenting, or transforming human work. The democratization of access to generative AI could help reduce inequality by increasing the productivity of talent with lesser skills.