10 Generative AI Predictions For 2024

SUMMARY

No technology is real and future-proof till enterprise adoption kicks in, and when it comes to GenAI, this is yet to happen, believe investors that are actively focussing on emerging AI models

‘AI For India’ is likely manifest as an extension of the existing digital public infrastructure push from the Indian government which has lifted India's digital quotient to a great extent in the past two decades

Investors watching the space believe Indian startups have a better opportunity to innovate in the infrastructure and application layers of GenAI but high capital requirements remain a big constraint

The end of 2023 was something of an anti-climax for AI. Especially, after a year, where you could pretty much not avoid generative AI, OpenAI, ChatGPT and everything else that came with being in the so-called next generation of technology. And of course, Indian startups jumped on to the generative AI bandwagon swiftly.“One of the things I say is that no technology is real and future-proof till enterprise adoption kicks in, and when it comes to GenAI, this is yet to happen. So watch out for this in 2024,” according to Naganand Doraswamy, founder of Ideaspring Capital adding, that enterprise adoption is bound to happen as data silos break down.In late 2023, the EU rolled out the world’s first legislation aimed at regulating the use of AI. In 2024, many nations would be eyeing the EU model to create nation-specific AI laws, similar to how GDPR was used as a model for personal data laws.In December 2023, the Ministry of Electronics and Information Technology (MeitY) rolled out a new advisory to all social media platforms to comply with existing IT rules and ensure that deepfakes (AI-generated videos) and any related misinformation are curbed. The IT ministry has directed intermediaries to ‘clearly and precisely’ inform users about what kind of content is prohibited.Ideaspring’s Doraswamy believes that unfortunately India still needs enriched data. Despite the internet growth of the past decade, India is still a data-poor nation, which makes it harder to make impactful models. “For AI to truly have an ethical impact, the key is health data, education data and social data. Financial data currently has low AI applicability, but without the key data pillars, AI development in India will remain on the surface.”“The India Stack’s natural progression would be when processes like eKYCs, signing up for schemes, applying to entrance exams, applying for permits/licences could be simplified by LLMs and generative AI. This could be enabled by public-private partnerships where fine-tuned models by private organisations can get data access for specific functions,” Bhagia added.“Think of it like Android vs iOS. Open-source AI models are growing in popularity as startups race to compete with highly capitalised companies such as OpenAI or Cohere or Anthropic,” said another Bengaluru-based early stage investor, adding that Indian companies which do not have access to large swathes of capital will likely rely on open source models.“Everybody’s already using these models or they will use Llama if Facebook is generous enough and sticks to the open source model. But Meta has to really, really support Llama in the long run. But even then that would be a US-imported technology, and the gap is already widening,” Accel’s Swaroop added.One example is Giga ML, founded by Varun Vummadi and Esha Manideep Dinne, which has raised funding from Y Combinator and Nexus Venture Partners. The platform lets companies deploy LLMs on-premise — essentially cut off from the wider world — which it claims helps cut costs and preserve privacy of enterprise data.Similarly, there’s Portkey.AI, a startup that has built tools to allow businesses to monitor their LLM Ops, connect to multiple LLMs to experiment, improve and manage prompts effectively. It works with OpenAI, Anthropic, Langchain, LlamaIndex, among other LLMs, and boasts of customers such as Postman, Jio Haptik and Springworks.“Open source models of Mistral are already outperforming GPT3.5 in a few metrics, however, while they manage general tasks well, they are inaccurate for specific tasks. Here, Indian developers and startups will build lower cost fine-tuned models on top of global large models for vertically specific niche use cases. This will enable AI for India with our own data, leveraging global resources,” added All In Capital’s Bhagia.“Indian startups have locally built and scaled SaaS for global markets. Similar patterns may play out in Generative AI’s application layer too. There will be 3Cs for GenAI apps by India for the world – Creative tools, Companionship and Copilots,” the All In Capital founder added.“It’s [generative video] definitely capital intensive as of today. But we see that tapering down as more and more innovations come in. Now Nvidia is releasing data centres specific for Gen AI. So kind of a lot of innovations are happening on the DevOps front that can reduce the costs in the long run,” Mariappan said.“Then there’s the digital entertainment space. The likes of Pocket FM, Kuku FM, Pratilipi and all could theoretically scale up content production by thousands with AI-generated audio. And they can add another layer of engagement if generative video also grows to a point where their stories can be automatically made into short videos,” the Accel partner added.One area where we expect to see a lot more activity is hiring of AI talent and particularly in leadership roles. Enterprise hiring will be the big signal here. “We are already seeing leadership hiring and positions like chief AI officer (CAIO). Budget allocation for people is going to rise in 2024, but companies will be hiring for AI-specific roles, because they realise that it’s not possible to run this as a side project. AI needs focussed effort,” added Doraswamy.

But by the end of 2023, perhaps everyone was just a tad tired of the trite takes or as one investor told us, the end of 2023 was the end of AI as a fad. After 12 months of the ‘best ChatGPT prompts’ and ‘look what Midjourney is capable of’, perhaps 2024 is the year that generative AI grows up.

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