Yesterday, OpenAI (founder of ChatGPT) made announcements that have - again - wildly disrupted the market! Bottom line, many well-funded AI startups saw their business models evaporate and incumbents are threatened.
WHAT DOES THIS MEAN TO YOUR BUSINESS???
I'm traveling today so I don't have time to do a full deep dive, but I wanted to get you a view into the business impacts ASAP. The embedded picture was created by Sahar Mar and gives some quick insights into just some of those logos impacted by the speed and breadth of OpenAI's disruption. Below, I've included a list of the announcements and examples of how each capability can be used in business scenarios.
GPT-4 Turbo with a 128k context length
This means that AI can now digest and respond to much larger documents in a single go. Imagine a law firm that can feed an entire contract into an AI to analyze for risk or inconsistencies, rather than just sections of it.
Substantial price reductions
This makes AI technology more accessible for startups and small businesses. This continues the democratization trend that OpenAI unleashed when they made generative AI available to the masses for free last November.
Lower costs could lead to a local bakery utilizing AI for inventory predictions or a solo entrepreneur using advanced chatbots for customer service without breaking the bank.
New text-to-speech (TTS) model and API
Businesses can create more natural-sounding virtual assistants or audio content for their customers.
This could revolutionize the way a financial advisor shares market updates, turning dry newsletters into engaging audio clips.
Enhanced voice recognition can significantly improve the accuracy of voice-to-text services in noisy environments.
This could benefit busy restaurants taking reservations over the phone, ensuring accuracy despite the background clatter.
Assistants API and Retrieval
Businesses can build AI assistants tailored to their specific needs.
A medical clinic might use this to develop an assistant that can check patient symptoms against a database of illnesses for preliminary advice.
GPTs and the GPT Store, à la OpenAI’s App Store
This is a HUGE disruptor! This approach offers a monetization mechanism for creators and developers by giving them the ability to generate tools accessible through a store similar to the Apple App Store.
Imagine a home improvement company that wants to offer a DIY assistance app. Through the GPT Store, they could market an AI-driven app that helps users by providing personalized project guidance. The user could input the dimensions of their space, the type of work they're doing (like painting, flooring, or tiling), and the app could use AI to calculate material needs, recommend tools, and even guide them through the process with step-by-step instructions tailored to their specific project. This not only enhances customer engagement but also positions the company as a tech-forward leader in the home improvement industry.
DALL-E 3 API access with pricing starting at $0.04 per image
Allows developers to integrate the capabilities of DALL-E 3, an advanced AI image generation model, into their own applications. With this API, users can send prompts as text, and the model will generate original, high-quality images based on those descriptions. It's designed to be flexible and powerful, enabling a wide range of creative and practical applications, from generating artwork to creating visual content for businesses.
Imagine an online education platform that wants to create unique, engaging course materials. With DALL-E 3 API access, they could generate custom illustrations for their lessons at a low cost. For instance, they could produce unique images to accompany a history lesson, bringing historical figures and events to life in a way that resonates with students. This could help students better visualize and understand the content, leading to a more immersive and effective learning experience.
A new program from OpenAI offers selected organizations the chance to collaborate with researchers to create bespoke GPT-4 models that are highly specialized to their domains, ensuring exclusive access and privacy for their proprietary data
This offers a competitive advantage through tailored AI. A financial services firm could have an AI model that understands complex financial terminology and regulations, offering bespoke advice.
Companies can train the AI on their specific datasets, leading to more accurate and relevant outputs.
A retailer might fine-tune the model on past customer service interactions to improve its chatbot.
Now more efficient and accurate, with updates that enable the calling of multiple functions in a single message and enhancements that increase the likelihood of returning the correct function parameters.
This could streamline complex tasks like coding or data analysis, where multiple functions are often used. A tech company could use AI to debug software, calling on various functions to analyze and fix code more efficiently.
Higher rate limits
Doubling the current tokens per minute limit and allowing users to request rate increases.
Businesses that rely on heavy AI usage can now process more requests without bottlenecks. For instance, a social media management platform could offer real-time AI-generated content suggestions to thousands of users simultaneously.
Ensuring GPT returns valid JSON outputs
This ensures outputs can be directly used in applications without additional parsing. An e-commerce site might use AI to generate product descriptions that can be directly inserted into their website's code.
A new seed parameter
For consistent completions, facilitating debugging, comprehensive unit testing, and enhanced control over model behavior.
This aids in quality control and user experience consistency. An educational app could provide consistent AI tutoring sessions, ensuring students receive a uniform learning experience.
OpenAI will step in to defend and pay the costs incurred of any legal claims around copyright infringement for its users..
SUPER IMPORTANT! Microsoft, Google, IBM, Adobe, and others have also taken this step to protect their customers from legal concerns. This allows everyone to use these tools without fear of being sued later when questions about content being "stolen" for training models are settled in the courts.
In the wake of OpenAI's groundbreaking announcements, the landscape of competitive business has shifted overnight. For your business, this means an urgent call to evaluate and potentially recalibrate your strategic approach to AI adoption and application. The capabilities unleashed—ranging from GPT-4's extensive context understanding to dramatically lowered costs, and from highly sophisticated voice recognition to the potential for customized AI models—spell out a clear mandate: innovate or risk obsolescence.
The message is clear; the tools for transformative change are not just at your doorstep—they're already reshaping the market. The time for deliberation is over. Action is the new currency of progress. Whether it's rethinking customer engagement, streamlining operations, or unleashing new creative potential, the examples provided are just the tip of the iceberg of what's possible. The question is no longer if AI will be integral to business success, but how quickly you can integrate these advancements to propel your company forward.