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Digital innovation & entrepreneurship
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Lecture notes of 13 pages for the course Digital innovation & entrepreneurship at UvA (final notes)
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TOPIC 6AI, GENERATIVE AI & ENTREPRENEUSHIP
Reading 1: Chat GPT and how AI disrupts industries
OpenAI recently unveiled ChatGPT, an AI capable of storytelling and coding, which threatens to
redefine human roles. It endangers jobs, but it also creates fresh opportunities and organizational
dynamics. While not perfect, AI may outperform human reasoning.
Adapting to this evolving landscape requires a reimagining of economic systems that fully involve
the workforce. Rather than merely shifting tasks between people and machines, we need system
solutions that disrupt traditional workflows, generating new ones. An example lies in AI-powered
maps, which initially enhanced taxi dispatch services. Uber and Lyft, however, revolutionized the
industry by leveraging these tools to create ride-hailing systems, expanding the workforce tenfold
and necessitating significant changes to the entire system. Similarly, generative language models
may soon take over the task of writing coherent paragraphs, equipping more individuals with
strong writing skills. This upskilling could affect job dynamics, transforming traditional roles that
rely on language proficiency.
These advancements can revolutionize graphic design and enhance presentations, reshaping the
economy in unforeseen ways. While these AI developments will bring economic challenges and
adaptation costs, the inexorable march of technology cannot be halted. Instead, society must
harness these capabilities to its advantage by envisioning new systems built with these innovative
tools. The future will be shaped by how we embrace and adapt to AI's transformative potential.
Reading 2: Managing the risks of generative AI
Generative AI technology holds significant potential for transforming learning, work, and
business interactions. Research reveals that 67% of senior IT leaders are prioritizing generative
AI for their businesses, with concerns about security risks and biased outcomes. Businesses must
adhere to industry-specific regulations and address the legal, financial, and ethical implications,
especially in enterprise settings.
Guidelines are essential for ethical and transparent generative AI use, focusing on five areas:
training AI models on reliable data, mitigating bias and toxicity, respecting data provenance and
consent, maintaining human involvement in decision-making, and minimizing environmental
impact by using smaller AI models.
, Safely integrating generative AI in business involves training models with zero-party and first-
party data, avoiding reliance on third-party data sources. Reviewing datasets for bias, toxicity,
and falsehoods is crucial for accuracy and safety. Human oversight is necessary to understand
context and prevent damaging outputs.
Responsible adoption of generative AI requires constant oversight, automated review processes,
ethical AI training, and mechanisms for employees to report concerns. Companies should engage
in open communication with impacted communities and stakeholders.
As generative AI evolves rapidly, businesses must adhere to a strong ethical framework to
navigate the transformation effectively and responsibly.
Reading 3: Discovering where ChatGPT can create value for your company
AI technology has the potential to revolutionize numerous aspects of business and society. Its
rapid impact challenges conventional innovation approaches, as it doesn't necessarily address
specific problems or pain points. Instead, harnessing ChatGPT requires "emergent thinking,"
which involves exploring its core functions to generate innovative ideas without a predetermined
problem. Three pathways for leveraging ChatGPT for innovation have been identified:
1. Exploiting a Current Value Proposition: Use ChatGPT to enhance an existing value
proposition. For example, Instacart incorporated ChatGPT to improve the speed and
efficiency of grocery orders.
2. Expanding the Value Proposition: Use ChatGPT to expand the value proposition by
addressing new problems that complement the current offering. For instance, Khan
Academy integrated ChatGPT to create a personalized AI tutor, Khanmigo, enhancing
the learning experience for students and teachers.
3. Exploring a New Value Proposition: Use ChatGPT to explore entirely new value
propositions that customers may not yet recognize. This approach, akin to Steve Jobs'
philosophy of showing people what they need, involves brainstorming various goals,
contexts, and target demographics to identify new opportunities.
While ChatGPT holds great potential, pursuing these pathways must be cautious, especially when
dealing with unknown customer needs and emerging technology. Identifying clear analogies and
maintaining open-mindedness are essential to guide the innovation process effectively and ensure
positive outcomes in this uncharted AI territory.
Reading 4: Open source language AI challenges big tech’s models
BLOOM is an open-source language model which aimed to break the model of big tech
companies on natural-language processing and reduce the potential harm caused.
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