Artificial Intelligence (AI) is transforming the way we live and work, and it has the potential to revolutionize the entire knowledge economy. The development of AI algorithms and systems has been rapid and impactful, leading to the creation of new and more advanced AI systems, such as OpenAI's ChatGPT. ChatGPT stands as an exceptionally advanced AI language model with the capacity to comprehend and produce text resembling human language. It ranks among the most formidable AI systems currently accessible. As AI continues to progress, it will have a profound impact on the way we acquire, process, and use information. In this blog post, we'll explore the potential of AI to disrupt the knowledge economy and discuss how organizations and individuals can prepare for the change.
We didn’t write the above paragraph. Nobody did. It was written by ChatGPT. Unless you’ve been living in a cave for the last few months, you’ve probably heard about this disruptive technology. It appears that ChatGPT has become the “killer app” for Artificial Intelligence (AI).
For those of you who aren’t familiar with the term “killer app”, it is defined by Merriam-Webster as “a computer application of such great value or popularity that it assures the success of the technology with which it is associated”. For example, some of you may remember how, in the late 90’s, programs like Napster and Google transformed the internet from an upstart technology into the unavoidable part of life that it is today. Similarly, social networking apps like Instagram made everyone want smartphones with cameras.
ChatGPT appears to be the killer app for AI. It’s making waves across the media landscape, the school system, and pretty much everywhere. Consequently, we decided to chime in on the conversation. We’ll cover ChatGPT itself, the underlying AI technology, and then we’ll opine on how AI will transform the economy in the very near future.
What Is ChatGPT?
ChatGPT was built by a private San Francisco-based think-tank called OpenAI. OpenAI was founded by a handful of Silicon Valley heavyweights (Elon Musk, Peter Thiel, Reid Hoffman, et al) as a research lab aimed at creating next-level applications for deep learning and artificial intelligence. Their first major achievement was the development of the Generative Pre-trained Transformer language, or “GPT”. The goal of GPT was to teach computers to create human-like text. How did they go about doing this?
The way GPT works is that it compiles a LOT of text into a database. They took as much text as they could from all the websites in existence, plus 196,000 digitized books. This totaled 175 Terabytes of data, which equates to 14.5 billion pages of text. From this data, they compiled a probabilistic model that determines which words are most likely to follow a given phrase.
For example, if I were to type in “My head hurts because last night…”, the program would:
Look through all 14.5 billion pages of text to find all the times that the words “My head hurt because last night…” were used.
Take the phrase that follows it, and put it into a data table.
At the end, see which phrase came up the most,
Then return it as the most likely next phrase in that sentence, which, in our example, would most likely be something like “… I drank too much.”
Of course, this is a simplified example. The actual GPT model considers many more factors, but it relies on the same fundamental concept of generating natural-sounding language based on historical written text.
ChatGPT, as you can probably deduce from its name, is an experimental chat application powered by GPT technology. The idea is that a user could type in anything, and the program would write as much on that topic as the user wants. It was launched on November 30, 2022, and was an immediate hit. It grew to 57 million users in the first month. No application in internet history has ever grown that fast.
How Has ChatGPT Changed The World So Far?
It’s probably safe to say that everyone has an opinion about ChatGPT. AI coming of age thrills tech enthusiasts. For example, tech entrepreneur Aaron Levie recently tweeted, “ChatGPT is one of those rare moments in technology where you see a glimmer of how everything is going to be different going forward.”
On the other hand, this powerful new technology has made certain people very nervous. Many institutions have either banned it, criticized it, or otherwise discouraged it. Here are some examples:
Governments
ChatGPT is currently unavailable in countries such as China, Russia, Venezuela, Iran, and several others. While these governments have not publicly banned the technology, it is noteworthy that ChatGPT's unavailability in these regions may not be a mere coincidence. In countries where political dissent is restricted, such as China and Russia, authorities may seek to restrict access to information or to discussions that challenge their control or official narratives.
Schools
Many public school districts across the country, including New York, Los Angeles, and Seattle, quickly banned ChatGPT. Educators were quick to see that it could very easily provide students with a way to cheat on their homework. Why spend hours writing a book report when ChatGPT can make one in seconds?
In response, OpenAI has announced that it will provide free access to a tool that will enable teachers to identify anything written by ChatGPT.
Politics
Conservative news outlets such as The National Review, Fox News, and The Daily Wire have accused ChatGPT of having a left-wing political bias. These conservative commentators allege that the developers at OpenAI have intentionally programmed their personal political beliefs into the algorithm.
At CodeStringers, we prefer to stay out of political debates, so we'll refrain from offering our opinions on this matter. However, allegations have been made, and you can research the matter on your own to decide whether you agree.
Law
Anyone who has ever hired a lawyer can tell you that it is often a frustrating and bank-breaking experience. Lawyers charge lots of money, by the hour, and a lot of those hours are spent writing boilerplate legal documents. Wouldn’t it be great if, instead of paying, say, $2,000 for 4 hours of legal work on a contract, you could pay $500 for ChatGPT to write the contract, and the lawyer could just look it over and make a couple of edits?
Software
Indeed, ChatGPT and similar AI models can generate functional software code. You can request ChatGPT to create a website or a basic plugin in your preferred programming language within minutes. In recent months, there has been a surge in extensions that integrate ChatGPT into popular code editors like VSCode. These integrations offer programmers valuable features such as bug detection, code optimization, and code explanations.
This is giving a lot of anxiety to software developers. Will companies be able to downsize their expensive software development resources as a result of this powerful new technology?
Business
ChatGPT and similar AI technologies are causing concerns among many companies. Google, with a market value of $1.2 trillion, owes much of its success to the near-monopoly status of its search engine. However, this monopoly is now at risk because AI solutions can provide users with precise, natural-language answers to their queries, bypassing the need for a list of possible solutions.
Google, however, isn’t the only company that is nervous. The entire knowledge economy is at risk, for the first time in history. So how are businesses responding? Not surprisingly, the big players are either trying to buy it (Microsoft), or launch their own (Google and Baidu).
What Should We Do Now To Futureproof Ourselves?
It appears that we are on the precipice of another tech revolution; however, there is no need to panic. Human beings have proven ourselves to be adaptable. However, it's important to learn how to work with these new technologies; otherwise, they may replace you.
We can leverage AI to better support our work across many fields. For example:
Programmers should focus less on simple code writing and more on innovative structures, algorithms, etc. They should also familiarize themselves with open source AI products and use AI tools for error checking, testing, and basic code writing.
Lawyers should use AI to write boiler-plate contract terms, and should spend more time on negotiations, innovative deal structures, and client development.
Marketers can focus on researching, understanding customer insights, and coming up with breakthrough ideas. AI will probably be better suited to tasks like creating media plans and awareness campaigns.
Journalists can spend more time on investigative work and can use AI to write formulaic stories like crime reports and local government meetings.
Educators can use AI for grading, plagiarism detection, and to help assemble curriculum plans. Then they can spend more time teaching!
Even high-level jobs like CEOs can use AI to support their thinking and decision-making. A CSB article reported that "nearly 30% of US experts say they have used AI in their work."
Keep in mind that AI can only create based on past accomplishments. It cannot innovate. So, a good rule of thumb is to consider using AI for repetitive or derivative projects so you can spend more time innovating.
Final thought
In conclusion, AI has the potential to revolutionize the way we work and live in the coming years. While it may disrupt some industries, it also presents opportunities for growth and innovation. As we embrace the changes brought about by AI, it is essential to continue upskilling and reskilling to remain relevant in the knowledge economy. Individuals and organizations open to adapting and embracing AI will position themselves better for future success. The question is not whether AI will disrupt the knowledge economy, but rather whether we are ready to harness its potential.
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Frequently asked questions.
Which knowledge jobs are most exposed to AI disruption?
The most exposed work is routine, text-based and formulaic: boilerplate contract drafting, standard code, first-draft marketing copy, formulaic reporting, data entry and summarization. Roles built mainly on producing that kind of output face the most change. Work that depends on judgment, negotiation, relationships, investigation and accountability for outcomes is less exposed, because an AI model can draft but cannot be responsible. In most professions the effect is a shift in what the job consists of rather than the job vanishing.
How should a business prepare for AI disruption?
Start by mapping which tasks in each role are formulaic and which require judgment, then move the formulaic ones to AI tools with a person reviewing the output. Invest in training so staff know how to direct and check these tools. Clean up the data and processes the tools will depend on, since a model working from fragmented records produces confident errors. Decide what the tools may do without review. Businesses that make these moves early turn the disruption into capacity rather than losses.
Will AI replace software developers?
AI models already write functional code, detect bugs and explain unfamiliar code, which changes the job rather than removing it. The routine parts of development, such as boilerplate, standard integrations and first-pass tests, are increasingly produced by tools. The parts that remain with people are deciding what to build, designing the structure and data model, judging trade-offs, reviewing generated code for correctness and security, and owning the result in production. Developers who use the tools well become more productive; those who only write routine code face the most pressure.
What is the knowledge economy and why is it vulnerable to AI?
The knowledge economy is the part of the economy where value comes from producing, processing and applying information rather than from physical goods: law, software, finance, consulting, marketing, journalism, education and administration. Earlier waves of automation replaced physical and clerical work and left these fields largely untouched. Large language models produce text, code and analysis directly, which is the core output of knowledge work. That is why this wave reaches professions that previously assumed they were insulated from automation.
Is AI disruption a threat or an opportunity for small businesses?
Both, depending on how quickly a business adapts. The threat is that competitors use AI to produce content, code, analysis and customer service at lower cost. The opportunity is that the same tools let a small team do work that previously required departments: drafting contracts, generating first-draft campaigns, building simple software, summarizing research. Small businesses can often adopt faster than large ones because they have fewer processes to change. The deciding factor is whether people learn to work with the tools rather than around them.
