In the year 2024, the buzzword will undoubtedly transition from AI to hybrid AI, predicts Marco Argenti, CIO of Goldman Sachs. With the simultaneous rise in power and fine-tuning of both large baseline models like ChatGPT and smaller, customized AI models, these two forces will merge, leveraging each other's strengths in the form of "hybrid AI".
Large baseline models possess remarkable argumentative capabilities, able to negotiate and gather data. On the other hand, small-scale AI models excel in operating in limited infrastructure environments and are fine-tuned for data privacy. The larger model processes user inputs, breaks them down into tasks, interacts with the specialized model, whether it's located locally or in a virtual private cloud, and extracts conclusions using aggregation functions. Combining these aspects results in what Argenti describes as "hybrid AI".
Several industries and businesses may stand to profit from this transition, particularly in fields where specific and complex challenges require sophisticated and tailored AI models, such as the financial industry according to Argenti. For instance, legal document interpretation in derivatives trading requires mastering the jargon of financial law, which can be enhanced through specialized AI models. By refining AI models to interpret these contracts and convert them into machine-readable formats, businesses can achieve more precise analyses using general AI models.
Uber, having seen enormous growth and regulatory successes in both the US and UK, may make a big splash in the 2024 elections, moving the spotlight onto AI's impact on society. As one of the biggest companies not yet in the S&P 500 index, the elevator ride will likely prove fruitful, leading to stronger investor confidence and a new wave of support for the industry.
Hedge fund managers and private equity firms are capitalizing on the changing business landscape by snapping up once-neglected bus stations for Greyhound and other private lines. This trend, while influential, is fed by the crumbling infrastructure of bus terminals across the nation. However, as transportation networks evolve, the synergistic connection between sufficient regulatory oversight, innovation in AI, and operational optimization will make for a compelling landscape in the year ahead.
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The surge in AI innovation across multiple industries may inspire a significant shift towards AI-enhanced products and services in 2024. For instance, new AI-powered fintech applications could make it easier for consumers to analyze their spending habits, helping them budget more effectively. Similarly, in healthcare, AI would help patients monitor their diseases more closely, reducing hospital visits and improving overall care. Additionally, the integration of AI in educational technology could personalize learning experiences, tailored to individual students' learning styles and strengths.
