Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on Nov. 15, 2022.
SeongJoon Cho | Bloomberg | Getty Images
Thanks to recent advances in artificial intelligence, new tools like ChatGPT are wowing consumers with their ability to create compelling writing based on people’s queries and prompts.
While these AI-powered tools have gotten much better at producing creative and sometimes humorous responses, they often include inaccurate information.
For instance, in February when Microsoft debuted its Bing chat tool, built using the GPT-4 technology created by Microsoft-backed OpenAI, people noticed that the tool was providing wrong answers during a demo related to financial earnings reports. Like other AI language tools, including similar software from Google, the Bing chat feature can occasionally present fake facts that users might believe to be the ground truth, a phenomenon that researchers call a “hallucination.”
These problems with the facts haven’t slowed down the AI race between the two tech giants.
On Tuesday, Google announced it was bringing AI-powered chat technology to Gmail and Google Docs, letting it help composing emails or documents. On Thursday, Microsoft said that its popular business apps like Word and Excel would soon come bundled with ChatGPT-like technology dubbed Copilot.
But this time, Microsoft is pitching the technology as being “usefully wrong.”
In an online presentation about the new Copilot features, Microsoft executives brought up the software’s tendency to produce inaccurate responses, but pitched that as something that could be useful. As long as people realize that Copilot’s responses could be sloppy with the facts, they can edit the inaccuracies and more quickly send their emails or finish their presentation slides.
For instance, if a person wants to create an email wishing a family member a happy birthday, Copilot can still be helpful even if it presents the wrong birth date. In Microsoft’s view, the mere fact that the tool generated text saved a person some time and is therefore useful. People just need to take extra care and make sure the text doesn’t contain any errors.
Researchers might disagree.
Indeed, some technologists like Noah Giansiracusa and Gary Marcushave voiced concerns that people may place too much trust in modern-day AI, taking to heart advice tools like ChatGPT present when they ask questions about health, finance and other high-stakes topics.
It’s unclear how reliable Copilot will be in practice.
Microsoft chief scientist and technical fellow Jaime Teevan said that when Copilot “gets things wrong or has biases or is misused,” Microsoft has “mitigations in place.” In addition, Microsoft will be testing the software with only 20 corporate customers at first so it can discover how it works in the real world, she explained.
“We’re going to make mistakes, but when we do, we’ll address them quickly,” Teevan said.
The business stakes are too high for Microsoft to ignore the enthusiasm over generative AI technologies like ChatGPT. The challenge will be for the company to incorporate that technology so that it doesn’t create public mistrust in the software or lead to major public relations disasters.
“I studied AI for decades and I feel this huge sense of responsibility with this powerful new tool,” Teevan said. “We have a responsibility to get it into people’s hands and to do so in the right way.”
Artificial intelligence robot looking at futuristic digital data display.
Yuichiro Chino | Moment | Getty Images
Artificial intelligence is projected to reach $4.8 trillion in market value by 2033, but the technology’s benefits remain highly concentrated, according to the U.N. Trade and Development agency.
In a report released on Thursday, UNCTAD said the AI market cap would roughly equate to the size of Germany’s economy, with the technology offering productivity gains and driving digital transformation.
However, the agency also raised concerns about automation and job displacement, warning that AI could affect 40% of jobs worldwide. On top of that, AI is not inherently inclusive, meaning the economic gains from the tech remain “highly concentrated,” the report added.
“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” it said.
The potential for AI to cause unemployment and inequality is a long-standing concern, with the IMF making similar warnings over a year ago. In January, The World Economic Forum released findings that as many as 41% of employers were planning on downsizing their staff in areas where AI could replicate them.
However, the UNCTAD report also highlights inequalities between nations, with U.N. data showing that 40% of global corporate research and development spending in AI is concentrated among just 100 firms, mainly those in the U.S. and China.
Furthermore, it notes that leading tech giants, such as Apple, Nvidia and Microsoft — companies that stand to benefit from the AI boom — have a market value that rivals the gross domestic product of the entire African continent.
This AI dominance at national and corporate levels threatens to widen those technological divides, leaving many nations at risk of lagging behind, UNCTAD said. It noted that 118 countries — mostly in the Global South — are absent from major AI governance discussions.
UN recommendations
But AI is not just about job replacement, the report said, noting that it can also “create new industries and and empower workers” — provided there is adequate investment in reskilling and upskilling.
But in order for developing nations not to fall behind, they must “have a seat at the table” when it comes to AI regulation and ethical frameworks, it said.
In its report, UNCTAD makes a number of recommendations to the international community for driving inclusive growth. They include an AI public disclosure mechanism, shared AI infrastructure, the use of open-source AI models and initiatives to share AI knowledge and resources.
Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution.
“AI can be a catalyst for progress, innovation, and shared prosperity – but only if countries actively shape its trajectory,” the report concludes.
“Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides.”
Altimeter Capital CEO Brad Gerstner said Thursday that he’s moving out of the “bomb shelter” with Nvidia and into a position of safety, expecting that the chipmaker is positioned to withstand President Donald Trump’s widespread tariffs.
“The growth and the demand for GPUs is off the charts,” he told CNBC’s “Fast Money Halftime Report,” referring to Nvidia’s graphics processing units that are powering the artificial intelligence boom. He said investors just need to listen to commentary from OpenAI, Google and Elon Musk.
President Trump announced an expansive and aggressive “reciprocal tariff” policy in a ceremony at the White House on Wednesday. The plan established a 10% baseline tariff, though many countries like China, Vietnam and Taiwan are subject to steeper rates. The announcement sent stocks tumbling on Thursday, with the tech-heavy Nasdaq down more than 5%, headed for its worst day since 2022.
The big reason Nvidia may be better positioned to withstand Trump’s tariff hikes is because semiconductors are on the list of exceptions, which Gerstner called a “wise exception” due to the importance of AI.
Nvidia’s business has exploded since the release of OpenAI’s ChatGPT in 2022, and annual revenue has more than doubled in each of the past two fiscal years. After a massive rally, Nvidia’s stock price has dropped by more than 20% this year and was down almost 7% on Thursday.
Gerstner is concerned about the potential of a recession due to the tariffs, but is relatively bullish on Nvidia, and said the “negative impact from tariffs will be much less than in other areas.”
He said it’s key for the U.S. to stay competitive in AI. And while the company’s chips are designed domestically, they’re manufactured in Taiwan “because they can’t be fabricated in the U.S.” Higher tariffs would punish companies like Meta and Microsoft, he said.
“We’re in a global race in AI,” Gerstner said. “We can’t hamper our ability to win that race.”
YouTube on Thursday announced new video creation tools for Shorts, its short-form video feed that competes against TikTok.
The features come at a time when TikTok, which is owned by Chinese company ByteDance, is at risk of an effective ban in the U.S. if it’s not sold to an American owner by April 5.
Among the new tools is an updated video editor that allows creators to make precise adjustments and edits, a feature that automatically syncs video cuts to the beat of a song and AI stickers.
The creator tools will become available later this spring, said YouTube, which is owned by Google.
Along with the new features, YouTube last week said it was changing the way view counts are tabulated on Shorts. Under the new guidelines, Shorts views will count the number of times the video is played or replayed with no minimum watch time requirement.
Previously, views were only counted if a video was played for a certain number of seconds. This new tabulation method is similar to how views are counted on TikTok and Meta’s Reels, and will likely inflate view counts.
“We got this feedback from creators that this is what they wanted. It’s a way for them to better understand when their Shorts have been seen,” YouTube Chief Product Officer Johanna Voolich said in a YouTube video. “It’s useful for creators who post across multiple platforms.”