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🍯 AI Adds a Whopping $4.4 Trillion Each Year

🍯 AI Adds a Whopping $4.4 Trillion Each Year

PLUS: AI startup raises over $100 million and EU inches closer to AI regulation

Honey Tree
June 16, 2023

Welcome to Honey Tree, the newsletter that makes learning about AI sweet and simple. The world of AI can be fast-paced and confusing, so we’re here to help.

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Here’s what what we got for today:

💰 AI Adds $4.4 Trillion Annually to the Global Economy
💸 Newborn AI Startup Raises Over $100 Million
🤖 EU Moves to Regulate AI
🤣 Sweet Memes
🍯 Honey Board

💰 Study Finds AI Could Add Trillions in Value

Not too long ago, Goldman Sachs reported that AI could drive a $7 trillion increase in global GDP over a 10-year period…and, it looks like that’s a bit conservative

…because a new report from McKinsey & Co. found that AI could add up to $4.4 trillion annually to the global economy

How much is that? Well, the UK’s entire GDP in 2021 was $3.1 trillion.

The Research: McKinsey used two methods to examine how AI could impact the global economy.

Analyzing 63 use cases in which AI could assist in specific business challenges — such as generating sales content like a personalized email for a customer or drafting computer code.
Evaluating AI’s potential impact on over 2,100 work activities required in 850 jobs — such as “communicating with others about operational plans or activities”.

The Findings: According to the report, AI will completely disrupt the workforce

Half of all work “could be automated between 2030 and 2060”.
Along with other technology, today’s AI could potentially automate 60 to 70 percent of employees’ work time.
Implementing AI just across four business functions (customer operations, marketing and sales, software engineering, and research and development) would yield 75% percent of the annual value generated from AI.

💸 Baby Startup Raises €105 Million

If you’re thinking of starting an AI company, here’s your sign: a four-week old startup (Mistral AI) based in France raised €105 million in Europe’s largest-ever seed round — valuing the company at €240 million.

Strategy is key: Lightspeed Venture Partners (an early investor in Snapchat, Epic Games, and StabilityAI) and Eric Schmidt (former CEO of Google) have invested in Mistral AI.

What’s the secret sauce? The secret sauce comes from the founders, a trio of former AI researchers from Google and Meta. Antoine Moyroud, a partner at Lightspeed believes “there’s a pool of 80 to 100 people globally who have the level of experience they have”.

Mistral AI is looking to cash in on the AI hype by creating an open-sourced LLM (which is the technology that powers AI chatbots like ChatGPT and Bard) — but they may need help with building their website (see below).

Yes, this is the entire website.

🤖 EU Moves to Regulate AI

The EU is moving quickly to regulate artificial intelligence, as the European Parliament approved the AI Act — which includes bans on biometric surveillance, emotion recognition, and predictive policing systems.

What happens now? Members of the EU still need to negotiate the final draft of the bill, and it’s likely an agreement will be reached by the end of the year.

Here’s the catch: OpenAI’s CEO Sam Altman had mentioned that a previous “draft of the EU AI Act would be over-regulating” — and so, there’s a possibility of the company removing ChatGPT access in the EU.

The EU Loves Regulating AI

The Irish Data Protection Commission (IDPC) has prevented Google from releasing its chatbot Bard which was supposed to launch in the EU this week.

Keep in mind, Bard is already available in over 180 countries around the world.