China’s tech giant Alibaba wants to get involved in the artificial intelligence business. At the same time, Beijing is preparing state regulations. But governments in the West must also ask themselves: How many regulations does the technology need?
It was a big announcement for the Chinese internet giant Alibaba. The cloud division of the online retail group today presented a competitor to the text robot ChatGPT: the voice software “TongyiQianwen”, which means something like “truth from a thousand questions”, which also uses artificial intelligence (AI). But shortly afterwards, the developers’ joy was probably dampened. At the same time, the Chinese internet regulator, the “Cyberspace Administration of China”, published the first draft of planned regulations for AI services.
In 21 points, the authority presents possible requirements that could soon be imposed on Chinese companies and developers of AI language models. According to Beijing’s wishes, the content must reflect the “basic values of socialism”. In addition, no information may be disseminated that could disrupt the economic and social order. When developing the algorithms, care should also be taken to prevent discrimination based on gender or age, for example.
Bot with “hallucinations”
One problem for developers is the rule that all content must be truthful. The development of AI language models is still at an early stage.In many cases, the software is still imprecise and prone to errors. Google made an embarrassing mistake when introducing its chatbot “Bard”,which gave an incorrect answer about the James Webb telescope in its first public appearance . Alibaba’s chatbot, on the other hand, is initially geared towards business life and is intended to write documents or emails, for example.
However, it remains to be seen how well the bot will fare in the race against the competition, says George Karapetyan, AI expert at the consultancy LPA, to tagesschau.de . “According to initial user reports, Alibaba’s bot has also already had ‘ hallucinations’, which ultimately means that it confidently gives incorrect answers.”
The Chinese regulator now wants to put a stop to such false content. Comments and suggestions on the catalog of regulations can be submitted until May 10. “As the Chinese government begins to regulate and dictate what these bots can and cannot say, this could represent an additional hurdle in balancing innovation with compliance,” said Karapetyan.
Is developing technology too quickly?
From the expert’s point of view, the early introduction of clear rules for companies can also be helpful in reducing the risk of unforeseen results. “If China succeeds in defining clear guardrails early on, this also presents opportunities.” However, it can be difficult to regulate a technology that is developing so quickly and is so intelligent. Every day there are reports of how Internet users are circumventing theprotective mechanisms for controlling bots.
Alibaba is just the latest example of a Chinese company with its own text robot. Just one day earlier, the Hong Kong-based AI company SenseTime presented its chatbot “SenseChat” in a live demo, to which the stock market reacted with a strong increase in share prices. And last but not least, the Chinese search engine Baidu also demonstrated its chatbot”Ernie Bot”, which, however, generated less enthusiasm and a falling share price.
“Chinese bots are currently lagging behind and are primarily focused on the Chinese language,” says AI expert Karapetyan. At the moment, ChatGPT, the software designed by the start-up OpenAI and supported by Microsoft, is the “clear market leader and the gold standard”among chatbots.
The rapid advances of artificial intelligence are causing both excitement and apprehension. An intriguing interview conducted by CBS News with Google’s AI executives examines both perspectives.
Artificial intelligence (AI) is progressing rapidly. One striking example of the impressive – and in some ways unsettling – advancement is Google Bard. This AI-based chatbot was created by Google in response to the success of OpenAI’s ChatGPT and was released in a limited capacity in March 2023.
Bard swiftly generates a rich human-like narrative with its own characters in response to a six-word prompt – all within seconds. Over several months, the AI has extensively studied the content available on the Internet, forming a model of language. Instead of searching, responses are derived from this language model, thanks to Bard’s microchips, which operate at a speed 100,000 times faster than the human brain.
On one hand, there is excitement regarding the current capabilities of AI and the anticipation of how it will further simplify our professional lives in the future. Conversely, there are concerns about the rapidly evolving professional landscape and the potential for AI to surpass humans, potentially causing more harm than good (key term: machine learning, ML).
The most significant transformations are expected to occur in work environments. According to James Manyika, senior vice president of Google, over two-thirds of individuals will likely witness changes in their job descriptions. These jobs won’t vanish due to the integration of AI and automation but will undergo transformation. We are on the brink of significant changes that will impact skill sets, requiring individuals to adapt to working alongside machines.
One of the key concerns in the continued progression of AI is likely how to develop AI systems driven by human values. Sundar Pichai, CEO of Google LLC and its parent company Alphabet Inc., has emphasized the involvement of not only engineers but also social scientists, ethicists, philosophers, and others in the development process.
However, he also noted that the societal decision-making process should unfold during the development of AI and should not rest solely on the choices made by any one company.
ChatGPT, a human-like AI chatbot, has gained widespread attention across social media in recent days. OpenAI’s ChatGPT has rapidly gained popularity, sparking widespread discussions across the internet. It is built on artificial intelligence and possesses the ability to respond to queries, engage in natural conversations, and much more.
In just five days, it has garnered millions of users. Developed by the AI research company OpenAI, this chat tool, supported by Microsoft and Elon Musk, utilizes the company’s GPT3 (Generative Pre-Trained Transformer 3) technology, enabling users to converse with the AI on a wide range of topics.
It stands out from previous AI chat tools due to its ability to deliver responses in natural-sounding language – to the extent that if one wasn’t aware, they could easily mistake it for a conversation with a real human being.
Individuals have showcased how the AI assists them in tasks beyond basic conversations, such as composing articles and academic papers, drafting complete job applications, and even aiding in coding.
At present, it is available for free trial upon registration using an email and phone number. However, OpenAI mentions that conversations are reviewed “to enhance our systems” and may be used to train AI.
How did ChatGPT attain widespread popularity so rapidly?
According to Adam Conner, vice president for technology Policy at the Center for American Progress, ChatGPT quickly gained popularity because it was among the first AI technologies of its kind to be publicly accessible in a manner understandable to the general public.
“What sets GPT apart is its generative nature – it produces outputs in a manner comprehensible to ordinary individuals as opposed to simply outputting code or data,” Conner clarified.
Unlike traditional search engines like Google, ChatGPT can engage in conversation, offering human-like responses and dialogue with users. Users can request ChatGPT to generate a resignation letter, prompts for class discussions, and even academic tests.
ChatGPT can be likened to a “virtual companion,” as described by Jim Chilton, CTO of Cengage Group, an education technology company.
“I replicated a similar action with a calculus example, ‘generate a calculus final exam for me.’ It not only created the exam but also provided solutions to all the problems. It systematically explained the steps for solving the calculus problems, reinforcing the principles throughout the process.”
While some advocate for a temporary or justified ban due to the widespread use of ChatGPT among students, experts and educators argue that bans are not effective or equitable in the long run.
Though Conner recognizes the purpose of bans on ChatGPT, he adds that “everyone acknowledges that it’s not a universal solution.”
Glantz highlighted one significant issue with bans, which is “equity and access.”
How do governments respond?
Microsoft and ChatGPT’s competitors in the tech industry are under pressure to push ahead with their artificial intelligence business, even if the product is still immature. At the same time, given the rapid development, pressure is growing on governments around the world to find answers to the question of how lawmakers should respond.
In the USA, the IT authority NTIA (“NationalTelecommunications and Information Administration”) today announced publicconsultations on possible government measures. “Just as food and cars only come onto the market if their safety is guaranteed, AI systems should also give the public, the government and companies the assurance that they are fit for purpose,” it said in a statement. The authority could ultimately recommend safety assessments or certification of artificial intelligence to politicians.
Italy sets a deadline for ChatGPT
The EU is also looking for government regulations for the new technology. Most recently, the Italian data protection authority caused a stir by temporarily blocking ChatGPT in the country . The main concerns were the massive collection of personal data and the protection of minors. Italy has given OpenAI 20 days to inform the company of its further measures. Otherwise, it could face a fine of up to 20 million euros or four percent of annual turnover.
Two years ago, the EU Commission presented a draft AI regulation that could come into force this year. Regulation is urgently needed in this area, says Paul Lukowicz, head of the Embedded Intelligence research area at the German Research Center for Artificial Intelligence (DFKI) tagesschau.de .The technology will change the world in ways that we cannot even imagine today.Therefore, we cannot simply let it run its course in the sense of”uncontrolled growth”.
When a school bans ChatGPT, it can only be utilized on school computers and WiFi. Although this benefits students without access to technology outside of school, many students have personal devices at home through which they can use AI technology. According to Glantz, when a program like ChatGPT is prohibited on school computers and WiFi, it impacts students who solely rely on school technology for accessing technology when they are at school. Glantz asserts that some students have resorted to using a school WiFi hotspot to bypass the ban.
It is also essential to teach students how to utilize ChatGPT as this kind of technology might be necessary for future employment. Glantz stated, “ensuring that we equip the students with the necessary skills to leverage technology will be crucial.”
The maneuvering around or with ChatGPT could be the initial step in defining the relationship between schools and AI technology.
Conner suggests that decisions regarding the incorporation of ChatGPT and AI in schools in the future will need to involve the company, educators, parents, and administrators to be made.
ChatGPT, the AI chatbot, swiftly gained immense popularity in just a few weeks—much faster than social media platforms such as TikTok or Instagram. Only two months after its late November launch, the chatbot had 100 million monthly active users by January, as per Similarweb’s data. A study by Swiss bank UBS pointed out that “in 20 years within the internet space, we cannot recall a faster ramp in a consumer internet app.” According to Digital-adoption.com, OpenAI, the owner and host of ChatGPT, recently joined the list of the 50 most visited websites globally.
To provide context, Instagram took two and a half years to reach 100 million, while TikTok achieved this milestone in nine months.
The rapid rise of ChatGPT underscores its utility in assisting with various tasks and the widespread curiosity about human-like machines. Experts are divided on whether this signifies the beginning of a new AI era or if the excitement will diminish as people reach the limits of ChatGPT’s current capabilities.
Here’s why ChatGPT gained widespread popularity quickly and what that implies for the future.
What is ChatGPT?
ChatGPT, a chatbot developed by the San Francisco company OpenAI, is categorized as a generative AI. It swiftly and clearly responds to almost any prompt. Unlike many chatbots that only know how to respond to specific keywords or triggers, ChatGPT can provide comprehensive, essay-length answers on virtually any topic.
ChatGPT accomplishes this by processing the vast amount of data on the Internet through powerful neural networks, which are software loosely modeled on the neurons in the human brain. While this technology has been in existence for several years, Yann LeCun, the chief AI scientist at Meta, recently argued that ChatGPT was “not particularly innovative” and largely relied on Google’s Transformer neural net technology unveiled in 2017.
Some experts are surprised about the explosive popularity of ChatGPT. Margaret Mitchell, the chief ethics scientist at the AI company Hugging Face, stated that “the technology wasn’t introducing any fundamental breakthroughs.” However, ChatGPT was the first major project to introduce such AI for public use, experimentation, and testing. Unlike other companies like Google, which held back due to the unpredictability of this new technology and the potential harms it could cause, such as the spread of misinformation or hate speech, OpenAI chose to hurriedly bring their product to the market this fall in the face of potential upcoming competition, as reported by the New York Times.
While ChatGPT is built on complex technology, its visual interface is highly user-friendly: users simply enter text into a text box, similar to using Google. This straightforward interface has enabled people of all ages and backgrounds to immediately interact with it. Another strength of ChatGPT is its adaptability. If a user is dissatisfied with its response to their prompt, they can modify their input, and the AI will adjust accordingly.
What are people doing with ChatGPT?
The initial reason for ChatGPT’s viral spread was its novelty. Users requested ChatGPT to create a biblical verse about removing a peanut butter sandwich from a VCR or to come up with fantasy weapons inspired by Elvis. In just seconds, the AI would generate options such as “Love Me Tender Dagger” and “Blue Suede Sword.”
However, ChatGPT’s use quickly expanded beyond memes and tricks, extending into professional applications. ChatGPT is capable of brainstorming ideas, writing articles, and coding. People began using it to compose entire job applications, curriculums, academic papers, and scripts in various programming languages. According to Similarweb’s data, programming and developer software have emerged as some of the main uses for ChatGPT.
According to TIME, Sean Ellul, one of the co-founders of Metaverse Architects, mentioned in an email that ChatGPT has significantly improved their productivity and creativity, and he uses it for various tasks such as brainstorming, coding, writing articles, and generating new project ideas. The technology has prompted several companies, including Buzzfeed, to modify their business models to incorporate it into their workflows, particularly for quizzes and personalized content.
As a result of concerns about AI-generated school assignments, school districts across the United States, including New York City, have banned the use of ChatGPT.
Due to a substantial surge in interest, OpenAI has been forced to reject numerous users, redirecting them to a message stating, “ChatGPT is at capacity right now.” A paid tier has been introduced to address this issue, providing access to users during peak periods.
Could this be just the beginning of the widespread adoption of generative AI technology?
Following the surge in interest in ChatGPT, competitors in the technology sector are hastily introducing their own versions. Google has responded to ChatGPT by announcing its own Bard AI, which is set to launch in the upcoming weeks. Similarly, the Chinese tech giant Baidu is preparing to release a comparable chatbot in March, and Anthropic, an AI company founded by former OpenAI employees, has secured hundreds of millions in funding.
Microsoft, an investor in OpenAI, is in the process of integrating ChatGPT into its Bing search engine and Teams messaging platform. Consequently, many everyday work processes are likely to be augmented by generative AI technology, often without users’ awareness.
However, there are potential risks on the horizon. AI has been involved in generating hate speech, spreading misinformation, and assisting in the creation of malicious code. According to Mitchell, as the initial excitement surrounding this technology wanes, criticisms of its problematic applications are likely to increase.
Mitchell is apprehensive about the potential impact of ChatGPT on individuals seeking mental health guidance. She believes that ChatGPT might offer toxic or bullying advice without understanding the consequences, as it lacks comprehensive knowledge of the world.
Furthermore, she is worried about its usage as a substitute for search engines, as ChatGPT may provide declarative but false information. It has even fabricated a detailed history of a “successful civilization” created by dinosaurs. Mitchell is concerned that people are more likely to accept automated responses as factual due to cognitive bias.
The current AI arms race sparked by ChatGPT’s rapid rise could lead its competitors to take shortcuts in order to gain market share. Mitchell is concerned about the potential consequences, as she believes that regulatory measures are often reactive and tend to follow significant negative events.
When asked whether artificial intelligence is developing too rapidly, a chatbot may avoid giving a direct response, whereas high-profile tech leaders and researchers may firmly assert that it is indeed growing too fast.
According to Bard, Google’s AI engine, there is no straightforward answer to this question due to its complex nature and diverse perspectives.
Nevertheless, prominent figures in the tech industry have expressed the need to slow down the development of AI. This could involve companies establishing standards and disclosing their current and future use of AI, as suggested by business leaders.
In a letter signed by over 1,800 individuals, including Elon Musk, the CEO of Tesla and Twitter, and Steve Wozniak, a co-founder of Apple, as well as researchers from renowned universities like Harvard and Oxford, the rapid adoption of AI without fully understanding its implications was highlighted as a major concern.
“In recent months, there has been a race among AI labs to create and deploy increasingly powerful digital minds that are difficult for anyone, including their creators, to understand, predict, or control,” states the letter.
The letter acknowledges the need for engineers to develop AI systems, but the concern is the absence of agreed-upon guidelines for the operation of models such as ChatGPT, GPT4, Bard, and other generative AI systems.
It urges the development of powerful AI systems only when there is confidence in their positive effects and manageable risks.
To achieve this, companies like SAP, the German software giant that assists businesses with financial reporting, inventory tracking, and human resources services, are establishing standards for their teams. Others like PwC, the global accounting and consulting firm, advise CEOs to be transparent about their integration of the technology.
Sebastian Wieczorek, vice president of artificial intelligence technology and global lead of AI ethics at SAP, stated, “AI is a rapidly evolving technology that presents new opportunities every day.”
“All businesses should ask themselves if they understand the actions of AI,” commented Wes Bricker, a vice chair at PwC.
“AI will revolutionize major aspects of business,” he added, while emphasizing the responsibility of business leaders to be transparent as they gain more knowledge about AI.
The fast-paced nature of AI and its unforeseen consequences are well known. Consider Bing’s Sydney AI chatbot or Goldman Sachs’ announcement that AI could potentially boost annual world GDP by 7%.
Wieczorek described SAP’s approach as an ongoing evolution, emphasizing continuous improvement and the steps taken to utilize available data. “What benefits can we achieve?” “What is the accuracy we can attain with current technologies?” These are the questions SAP teams are addressing.
Bricker stressed the need for business leaders to enhance the regulations governing AI systems and processes. “Do we have clear governance guidelines to understand and prevent misuse or overuse?” he inquired, emphasizing the importance of AI being “understandable and explainable.”
AI extensively utilizes sensitive data, and according to Bricker, businesses have a duty to safeguard this data. He further added that it is vital to understand how AI might impact experience or security.
Businesses and consumers have various reasons to be enthusiastic about and embrace AI. Wieczorek mentioned that AI could help address common business challenges related to internal and external communications, finance, HR processes, promotions, training, and retirement planning.
SAP focuses its AI development on improving and standardizing everyday business processes. Wieczorek highlighted the necessity for engineers to train the programs on different types of data, such as images, and noted that these models, although seemingly basic, are currently limited in comparison to human capabilities.
According to Wieczorek, any AI ethics policy should prioritize human support in decision-making. For every use case, SAP requires a series of risk assessment questions, particularly relating to the processing of personal and sensitive data.
Bard also reflects on the potential impact of AI. “I recognize that AI has the potential to pose risks, but I am optimistic about its potential for good and believe that it can be developed in a way that minimizes risks and maximizes benefits.”
Artificial Intelligence (AI) has evolved from a theoretical concept to a disruptive force that is transforming industries globally. Recent years have seen a rapid acceleration in AI development, leading to discussions and speculation about the reasons behind this progress.
Having dedicated considerable time and effort to understanding the complexities of AI through programs such as INSEAD and various others, I have observed the impressive speed at which AI has advanced.
In this piece, we will analyze the primary factors propelling the acceleration of AI, offering valuable insights into this transformative phenomenon.
1. Technological Progress:
– The growth in computing power, driven by Moore’s Law and advancements in hardware architecture, has unlocked unprecedented capabilities for AI systems. For example, NVIDIA’s latest A100 GPU provides up to 20 times the performance of its predecessor, the K80 GPU, in deep learning activities.
– Specialized AI accelerators like Google’s Tensor Processing Units (TPUs) and Intel’s Nervana Neural Network Processors (NNPs) have further expedited AI computations, delivering performance gains surpassing traditional CPU architectures by significant margins.
– Innovations in algorithms, particularly in deep learning, have transformed AI applications in various domains, such as natural language processing and image recognition. For instance, breakthroughs like the development of Transformer models like BERT and GPT (Generative Pre-trained Transformer) have markedly enhanced AI’s ability to comprehend and generate human-like text.
– Advancements in Natural Language Processing (NLP), including the introduction of pre-trained language models like OpenAI’s GPT series and Google’s BERT, have led to substantial performance enhancements in NLP tasks, making state-of-the-art capabilities more accessible.
Ref.: NVIDIA’s annual GPU Technology Conference (GTC) presentations, OpenAI’s research publications, academic papers from conferences like NeurIPS and ICML.
2. Abundance and Quality of Data:
– The widespread use of digital devices and IoT sensors has generated vast volumes of data, which serve as the lifeblood of AI algorithms. It is estimated that by 2025, the global datasphere will expand to 175 zettabytes, presenting significant opportunities for AI applications.
– Improved data collection methods and data cleaning techniques have raised the quality and relevance of datasets, facilitating the development of more accurate AI models. According to a McKinsey report, organizations that utilize data-driven insights are 23 times more likely to acquire customers and six times more likely to retain them.
– The adoption of cloud computing has further accelerated the data abundance trend by providing scalable storage and computing resources. For instance, Amazon Web Services (AWS) offers services like Amazon S3 for storage and Amazon EC2 for computing, enabling organizations to store and process large datasets in the cloud with flexibility. This scalability and flexibility empower businesses to handle fluctuating data volumes and conduct complex AI analyses without substantial upfront investments in infrastructure.
3. Economic Conditions:
– During times of economic weakness, businesses might seek to enhance efficiency and productivity through the adoption of AI. According to reports from major firms such as Gartner, Forrester, and McKinsey, AI technologies present opportunities for optimizing resources and mitigating risks, which could be especially valuable in times of economic decline.
– The anticipation of tangible financial returns on AI investments is a significant driving force behind the increase in AI adoption. Businesses are increasingly realizing the potential of AI technologies in driving revenue growth, reducing costs, and gaining competitive advantages. Investments in AI are motivated by the expectation of concrete benefits, including enhanced operational efficiency, improved customer experiences, and better decision-making capabilities.
4. Government and Public Investment:
– In order to foster economic growth and competitiveness, governments worldwide are progressively investing in AI research and development. For example, China’s “New Generation Artificial Intelligence Development Plan” strives to lead global AI innovation by 2030, particularly in strategic sectors such as healthcare, transportation, and defense.
– Through public-private partnerships such as Canada’s Pan-Canadian AI Strategy and the U.S. National Artificial Intelligence Initiative, significant resources are dedicated to AI research, talent development, and infrastructure, promoting collaboration between academia, industry, and government agencies.
– Singapore has taken the lead in AI investment and innovation, committing more than $500 million to its national AI strategy. Initiatives like AI.SG, a program initiated by the government, unite stakeholders from academia, industry, and government agencies to advance AI research, talent development, and adoption across various sectors.
5. AI Platforms and Innovations:
– The growth of AI platforms has been significant in recent years. Reports from the industry indicate that there are now over 500 AI platforms available, a marked increase from just 100 platforms two years ago. These platforms, such as Sora, Dall-e, and Claude, offer advanced AI capabilities like natural language processing, computer vision, and generative modeling, catering to a wide range of use cases and industries.
6. Current Crisis and Wars:
– AI technologies are being utilized in current conflicts worldwide for surveillance and targeting purposes. For instance, AI-enabled drones are being used for reconnaissance and targeted strikes, while social media platforms leverage AI algorithms to manipulate public opinion and spread misinformation.
– In the realm of cybersecurity and cyber warfare, state and non-state actors are increasingly employing AI-powered tools for offensive and defensive purposes, conducting activities such as espionage, sabotage, and cyber attacks. Autonomous malware, AI-driven phishing attacks, and adversarial machine learning techniques pose significant threats to national security and critical infrastructure.
BUT….Limitations of AI and the Importance of Responsible AI:
– While AI offers great potential, it also presents limitations and ethical considerations. AI systems can demonstrate biases, lack transparency, and be vulnerable to adversarial attacks. Moreover, the deployment of AI in critical domains like healthcare and criminal justice raises concerns regarding privacy, fairness, and accountability.
– The development of responsible AI involves addressing these challenges through robust ethical frameworks, transparent algorithms, and inclusive decision-making processes. Initiatives like the AI Ethics Guidelines by the European Commission and the Responsible AI Institute are aimed at promoting ethical AI development and deployment practices.
Conclusion:
The recent rapid advancement of AI represents a convergence of technological, economic, and societal factors, pushing us into an era of unparalleled innovation and disruption. As AI continues to progress and infiltrate every facet of our lives, it is crucial to remain mindful of its implications and effects. While the potential benefits of AI are immense, including exhaustive productivity, efficiency, and economic growth, we must also address its limitations and ethical considerations.
Realizing the full potential of AI demands a collaborative effort from stakeholders across industries, academia, governments, and civil society. Through cultivating a culture of responsible AI development and deployment, we can mitigate risks, ensure fairness and accountability, and maximize the societal benefits of AI technologies.
In summary, the acceleration of AI is not solely a technological advancement but a societal transformation that requires thoughtful consideration and strategic action. By harnessing the driving forces behind the surge in AI while upholding ethical principles and inclusivity, we can pave the way toward a future where AI serves as a powerful tool for positive change and human progress.
The Chinese technology firm Alibaba launched over 100 new open-source artificial intelligence models and text-to-video AI technology on Thursday, ramping up its efforts to compete in the rapidly growing field of generative AI. The new open-source models come from Alibaba’s Qwen 2.5 family, which is the company’s latest foundational large language model that was released in May.
Similar to their U.S. counterparts, Chinese tech companies are heavily investing in generative AI, with businesses racing to create strong product portfolios and diversified offerings. While rivals like Baidu and OpenAI have largely taken closed-source approaches, Alibaba has adopted a hybrid strategy, investing in both proprietary and open-source developments to expand its AI product range.
These new models vary in size, ranging from 0.5 to 72 billion parameters, which affect an AI model’s capabilities and performance, and they offer proficiency in mathematics, coding, and support for over 29 languages, according to a statement from Alibaba.
The models are designed to serve a wide variety of AI applications across different sectors, including automotive, gaming, and scientific research. On Thursday, Alibaba also introduced a new text-to-video model as part of its Tongyi Wanxiang image generation family, entering a market that an increasing number of Chinese tech firms are exploring. This move places Alibaba in direct competition with global entities like OpenAI, which is also interested in text-to-video technology.
During J.P. Morgan’s 20th annual Global China Summit in May, Alibaba Group Chairman Joe Tsai emphasized the value and potential unlocked by artificial intelligence.
At the conference in Shanghai, over 2,700 delegates from 1,300 companies across 33 markets gathered to gain insights from sectors like tech, healthcare, and renewables.
In Tsai’s fireside chat, AI was a prominent topic of conversation.
“AI is an extremely important field where you can’t just choose one path,” noted Tsai, who spoke next to Kam Shing Kwang, Chairwoman for North Asia and Vice Chair of Investment Banking for Greater China at J.P. Morgan.
“We are the only company [in China] that operates a leading cloud business while remaining competitive in AI,” he remarked. “The combination of AI and cloud services is crucial.”
During a 30-minute dialogue with Kwang, Tsai elaborated on how AI is propelling growth in the company he co-founded 25 years ago, influencing both Alibaba’s core e-commerce operations and its cloud services.
“We see immense potential in AI… and that’s why we’re fully committed.”
“To understand AI as a layperson is akin to educating a child: you guide them through middle school, high school, and college until they ultimately earn PhDs… When individuals compare LLMs and claim ‘mine is superior to yours,’ they are essentially stating ‘my child has three PhDs and is knowledgeable in biology, math, and psychology.’”
“As a technology company and a pioneer in this field, we firmly believe in the ongoing progression of machine intelligence and that machines will continually improve.”
“It is vital for us to apply AI in a diverse range of vertical applications… Our e-commerce use cases are astounding.”
“Anyone utilizing our AI will need to leverage cloud computing power… Users of open-sourced AI in our community will also require computing resources. That’s how we can enhance our cloud computing revenue.”
“AI is too significant of a field to merely follow one path. It’s reminiscent of a saying from Yogi Berra: ‘when you reach a fork in the road, take it.’”
“Alibaba is focused on growth. We are about technological innovation. We are dedicated to integrating our technology into our core business to generate value for our customers and, ultimately, our shareholders… A growth mindset is essential when competing, and that’s where we stand.”
In September 2024, Alibaba launched over 100 open-source artificial intelligence models and enhanced its proprietary technology to intensify competition against rivals.
The newly introduced models, known as Qwen 2.5, are intended for use in various applications and fields such as automotive, gaming, and scientific research, Alibaba stated. They exhibit more advanced capabilities in mathematics and coding, the company added.
The firm, based in Hangzhou, aims to heighten competition with domestic competitors like Baidu and Huawei, as well as with U.S. giants like Microsoft and OpenAI.
AI models are developed using vast datasets. Alibaba claims its models can comprehend prompts and generate text and images
Open-source means that anyone—whether researchers, academics, or companies—across the globe can utilize the models to create their own generative AI applications without the need to develop their own systems, thus saving time and resources. By making the models open-source, Alibaba hopes to attract a larger user base for its AI.
The Chinese e-commerce giant initially introduced its Tongyi Qianwen, or Qwen, model last year. Since then, it has rolled out enhanced versions and claims that, to date, its open-source models have been downloaded 40 million times.
The company also announced that it has improved its exclusive flagship model known as Qwen-Max, which is not available as open source. Instead, Alibaba markets its features through its cloud computing solutions for businesses. The company indicated that Qwen Max 2.5-Max outperformed competitors like Meta’s Llama and OpenAI’s GPT-4 in multiple areas, including reasoning and language understanding.
Alibaba introduced a new AI-driven text-to-video tool that creates a video based on user prompts. This is akin to OpenAI’s Sora.
“Alibaba Cloud is investing with unprecedented zeal in AI technology research and development, along with building its global infrastructure,” stated Eddie Wu, CEO of Alibaba.
Wu, who assumed the CEO position at Alibaba last year during a significant reshuffle, has been working to revive growth at the tech giant amidst challenges like increasing competition and a sluggish Chinese consumer market.
Alibaba holds a prominent position in China’s cloud computing market, but globally, it lags behind Amazon and Microsoft. The company hopes that its latest AI innovations will attract customers both within and outside of China, enhancing a division that has struggled but showed early signs of growth in the June quarter.
Alibaba’s Latest AI Model Improves Weather Forecasting Accuracy Amidst Growing Climate Risks
In reaction to the increasing threats posed by climate change, Alibaba’s research division, DAMO Academy, has introduced an innovative AI weather forecasting model named “Baguan.” This model is engineered to forecast weather conditions up to ten days ahead with hourly updates and seeks to redefine accuracy in meteorology, assisting industries in adapting to climate changes and mitigating environmental impacts.
Recent instances of extreme weather, like severe flooding in Spain, landslides and flooding due to heavy rainfall in Nepal, and a tropical storm in the Philippines affecting millions, underscore the pressing dangers presented by climate change.
A report titled “United in Science” by the World Meteorological Organization (WMO) indicates that climate change effects and extreme weather threaten both human well-being and the planet. However, artificial intelligence and machine learning have the potential to provide essential assistance, as these advanced technologies facilitate quicker, cheaper, and more accessible weather modeling, particularly for lower-income countries with limited computing resources.
Baguan is inspired by the ancient Chinese practice of integrating various perspectives for a holistic understanding. It utilizes cutting-edge AI technology to boost the accuracy and efficiency of weather predictions. This model offers forecasts and hourly updates with unmatched precision, covering time ranges from one hour to ten days, with a high spatial resolution of one-by-one kilometer grids.
“Baguan signifies a notable leap in our commitment to leveraging technology for societal benefit,” remarked Wotao Yin, Director of the Decision Intelligence Lab at Alibaba DAMO Academy. “Its advanced technology not only advances climate science but also supports sustainable practices across various sectors including renewable energy and agriculture.”
Utilizing the innovative Siamese Masked Autoencoders (SiamMAE) design and a groundbreaking autoregressive pre-training technique, Baguan excels in processing and interpreting intricate atmospheric data. A global-regional modeling strategy further enhances the model’s effectiveness: it incorporates ERA5, the European Centre for Medium-Range Weather Forecasts (ECMWF) atmospheric reanalysis of global weather from 1979 onwards, supplemented by localized weather data such as temperature, wind speed, and solar irradiance.
Baguan’s functionalities extend past basic weather forecasting. In the renewable energy field, the model’s precise and detailed weather predictions are crucial for optimizing energy generation, leading to more stable and efficient power management. The model’s accuracy was evident during a sudden temperature drop in Shandong Province, China, where Baguan correctly predicted a 20% decrease in electricity demand, achieving high accuracy at 98.1% in load forecasting. This enabled improved grid operations, lowering costs while enhancing energy distribution efficiency.
The ambitions of DAMO Academy reach beyond immediate weather predictions. Drawing from years of expertise in mathematical modeling, time-series forecasting, and explainable AI, DAMO aims to create a high-precision weather forecasting model that will benefit a variety of industries and improve adaptability in regions facing diverse climate challenges.
“We will persist in improving performance for crucial weather indicators such as cloud cover and precipitation, developing innovative technologies for various climate scenario analyses, and supporting additional applications like civil aviation meteorological warnings, agricultural production, and preparations for sporting events,” added Yin.
