Artificial Intelligence Will Have A Sobering 2024, Analyst Highlights Cost and Regulation Challenges

CCS Insight, an analyst firm, anticipates a reality check for the generative artificial intelligence (AI) sector in 2024 due to fading hype, escalating operational costs, and increasing calls for regulation. 

The firm's annual predictions suggest a cooling period for generative AI as the excitement surrounding it is tempered by the realization of the associated costs, risks, and complexities, CNBC notes. 

Companies like Alphabet Inc GOOG GOOGL Google, Amazon.Com Inc AMZN, Qualcomm Inc QCOM, and Meta Platforms Inc META have been at the forefront of the AI conversation. However, the operational costs, especially for smaller organizations and developers, are becoming a significant barrier.

Also Read: Microsoft, Google, And Adobe Navigate AI's Profitability Challenge

Generative AI models, including OpenAI's ChatGPT and Google Bard, require substantial computing power and advanced graphics processing units (GPUs), often supplied by Nvidia Corp NVDA. 

The expense of deploying and maintaining these AI systems is considerable. In response, tech giants like Amazon, Google, Alibaba Group Holding Limited  BABA, and Meta are developing AI chips to manage costs.

In the regulatory landscape, the European Union (EU) is leading the charge in AI legislation. However, CCS Insight predicts that the EU's AI regulations will encounter challenges and undergo multiple revisions due to the rapid advancement of AI technology, the report says. 

The legislation will likely be finalized by late 2024, prompting the industry to initiate self-regulation in the interim.

Furthermore, CCS Insight anticipates that a search engine will introduce content warnings for AI-generated material to address the issue of misinformation. 

The firm also predicts that by 2024, legal actions will be initiated against individuals committing AI-based identity fraud, highlighting the emerging challenges associated with the proliferation of AI technologies.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.