WHAT YOU NEED TO KNOW ABOUT AI - PART 2

How exactly does generative AI work?

Generative AI enables tools to create written work, images and even audio in response to prompts from users.

To get those responses, several Big Tech companies have developed their own large language models trained on vast amounts of online data. The scope and purpose of these data sets can vary. For example, the version of ChatGPT that went public last year was only trained on data up until 2021 (it’s now more up to date).

These models work through a method called deep learning, which learns patterns and relationships between words, so it can make predictive responses and generate relevant outputs to user prompts.

How is generative AI different from AGI?

As impressive as some generative AI services may seem, they essentially just do pattern matching. These tools can mimic the writing of others or make predictions about what words might be relevant in their responses based on all the data they’ve previously been trained on.

AGI, on the other hand, promises something more ambitious — and scary.

AGI — short for artificial general intelligence — refers to technology that can perform intelligent tasks such as learning, reasoning and adapting to new situations in the way that humans do. OpenAI CEO Sam Altman has teased the possibility of a superintelligent AGI that could go on to change the world or perhaps backfire and end humanity.

For the moment, however, AGI remains purely a hypothetical, so don’t worry too much about it.

How much of the AI gold rush is just hype?

Anytime there’s an excess of buzz around a technology, it’s good to be skeptical — and there is certainly a lot of that here. Investor fascination with AI has helped push Wall Street back into a bull market, despite lingering economic uncertainty.

Not all AI tools are equally useful and many companies will certainly tout AI features and strategies simply to tap into the current hype cycle. But even in just the past six months, AI has already shown potential to change how people do numerous everyday tasks.

One of the biggest selling points around AI chatbots, for example, is their ability to make people more productive. Earlier this year, some real estate agents told CNN that ChatGPT saved them hours of work not only by writing listings for homes for sale but also looking up the permitted uses for certain land and calculating what mortgage payments or the return on investment might be for a client, which typically involve formulas and mortgage calculators.

Artificial intelligence is also much broader than ChatGPT and other generative AI tools. Even if you think AI chatbots are annoying or might be a fad, the underlying technology will continue to power meaningful advances in products and services for years to come.

WHAT YOU NEED TO KNOW ABOUT AI - PART 1

Business executives keep talking about it. Teachers are struggling with what to do about it. And artists like Drake seem angry about it.

Love it or hate it, everyone is paying attention to artificial intelligence right now. Almost overnight, a new crop of AI tools has found its way into products used by billions of people, changing the way we work, shop, create, and communicate with each other.

AI advocates tout the technology’s potential to supercharge our productivity, creating a new era of better jobs, better education, and better treatments for diseases. AI skeptics have raised concerns about the technology’s potential to disrupt jobs, mislead people, and possibly bring about the end of humanity as we know it. Confusingly, some execs in Silicon Valley seem to hold both sets of views at once.

What’s clear, however, is that AI is not going away, but it is changing very fast. Here’s everything you need to know to keep up.

What is AI?

In the public consciousness, “artificial intelligence” may conjure up images of murderous machines eager to overtake humans, and capable of doing so. But in the tech industry, it’s a broad term that refers to different tools that are trained to perform a wide range of complex tasks that might previously have required some input from an actual person.

If you use the internet, then you almost certainly use services that rely on AI to sort data, filter content and make suggestions, among other tasks.

It’s the technology that allows Netflix to recommend movies and that helps remove spam, hate speech and other inappropriate content from your social media feeds. It helps power everything from autocorrect features and Google Translate to facial recognition services, the last of which uses AI that, in Microsoft’s words, “mimics a human capability to recognize human faces.”

AI can also be successful in developing techniques for solving a wide range of real world problems, such as adjusting traffic signals in real time to manage congestion issues or helping medical professionals analyze images to make a diagnosis. AI is also central to developing self-driving cars by processing tremendous amounts of visual data so the vehicles can understand their surroundings.

So why is everyone talking about AI now?

The short answer: ChatGPT.

For years, AI has largely operated in the background of services we use every day. That changed following the November launch of ChatGPT, a viral chatbot that put the power of AI front and center.

People have already used ChatGPT, a tool created by OpenAI, to draft lawsuits, write song lyrics and create research paper abstracts so good they’ve even fooled some scientists. The tool has even passed standardized exams. And ChatGPT has sparked an intense competition among tech companies to develop and deploy similar tools.

Microsoft and Google have each introduced features powered by generative AI, the technology underpinning ChatGPT, into their most widely used productivity tools. Meta, Amazon, and Alibaba have said they’re working on generative AI tools, too. And numerous other businesses also want in on the action.

It’s rare to see a cutting-edge technology become so ubiquitous almost overnight. Now businesses, educators, and lawmakers are all racing to adapt.

IS CHATGPT COMING FOR YOUR MARKETING BUSINESS?

Two months have passed since the latest model of ChatGPT was released and it's fair to say that the media and creative industries are living in a moment of self-doubt. While AI is far from a new technology, its real-world applications were previously mostly limited to data-focused tasks such as analytics and process automation. The latest generative AI tools, however, have exceeded most of our expectations in their ability to produce creative content - something which, until very recently, was believed to be the sole preserve of humans.

Now that tools such as ChatGPT-4 and DALL-E have cast doubt on this assumption, concern is rapidly spreading across the media and marketing industries. On May 2nd the Writers Guild of America announced a collective strike, citing the "regulation of material produced by AI and similar technologies" as one of the key demands, while digital publications have been closing segments and axing jobs in efforts to remain profitable. 

These concerns are valid in many ways. The latest advances in AI are impressive and any industry needs to keep a close eye on trends to understand whether they pose serious threats. But letting a culture of fear dominate isn't wise either. This is not the first time that imposing new technology has put the future of whole industries under question. We might note, for example, that crypto is no closer to putting central banks and fiat currencies into obsolescence. 

Though we can't deny the reality that generative AI is going to have an impact on the way marketing and media companies operate, it's far from game over. By employing a "first principles" approach we can unpack the hype surrounding generative AI to get a more realistic picture of what the future will hold for the media and marketing industries.  

Applying the first principles approach 

For the purpose of this article we'll focus on three of the most prominent concerns that the media and marketing industries are currently grappling with in the wake of generative AI. These are: 

1. Editorial work can be outsourced to AI 
2. AI will outperform content marketers 
3. Digital media will become autonomous (or media will become unsustainable to run) 

Editorial work can be outsourced to AI

Let's start with editorial which, at the moment, is an area of the industry that many assume could be the worst hit by the latest advances in generative AI. ChatGPT has shown itself capable of producing articles of a consistently passable standard from just a collection of prompts at a speed that far surpasses human writers. What's more, the software is constantly improving, as machine learning is built to do, meaning that content will become more accurate and specific over time. That said, we don't believe it's wise for anyone to adopt this approach and outsource editorial content production to AI. 

If we come back to the first principles approach we need to remember the main reason why companies invest in editorial. For 81% of 'people', editorial is the most popular content format for SEO. Of course editorial coverage helps to raise the visibility of a company in more general terms, but a primary business objective is most often improving traffic from search engines.

However, Google's advocate John Mueller said that Google will count AI-generated content as spammy content. This means that companies relying on AI to produce editorial will be penalized, undermining the main business objective of the activity.

AI can certainly beat writers in terms of speed, but adopting this approach becomes illogical when we apply first principles reasoning to the fundamentals of the problem. And though it's true that the future of search engines has also come under question thanks to ChatGPT, it's unlikely it will result in a drastic shift in the way these operate. 

People like how search works -- and many don't like AI. 

This past month, Snapchat rolled out its new AI chatbot to all of its global users, after trying it on Snapchat Plus subscribers. Iit hasn't exactly been met with universal acclaim, according to reports tracking the app's ratings on the App Store. As spotted by TechCrunch, Snapchat's average U.S. App Store review was 1.67 stars, with 75% of those reviews being one star. 

Additional data from Apptopia showed that 'AI' was the most common keyword in reviews during the period.

AI will outperform content marketing 

Next, let's move on to marketing. The core purpose of marketing is always about driving new business. While there are certain tasks and elements that can be taught and replicated, such as a template on how to create a case study or produce educational blogs, the success of a campaign depends upon a detailed and nuanced understanding of the business and its position in the current market. 

I can task AI to produce a 1,000-word report or deliver a schedule of social media posts, but creating the content isn't the end goal. The goal is to drive business. We know that generative AI has the ability to draw upon thousands of sources and create passable content at a phenomenal speed. Yet over time, brands using ChatGPT to create marketing content may begin to notice that its outputs lack depth. 

While the tool has access to a phenomenal amount of information, its training data only goes up to 2021. It doesn't have knowledge of more recent events, breaking news or the latest industry trends meaning that your content may fail to offer readers valuable insights or even deliver inaccurate advice, devaluing the impact of the content in the long run. Google's Bard model uses more real-time information, but currently delivers lower quality results.
In addition, high-quality brand marketing often relies on the power of real-life examples and lived experiences that demonstrate the expertise of a company and its team. Generative AI won't have access to business situations that take place offline such as meetings or conferences. Here, the tool risks falling short in terms of the creativity and personalization needed to build a high-performance marketing campaign. 

In short, AI may be able to output content at an unmatched pace of delivery, but it won't understand what matters to your audience when it comes to gaining new business leads and converting them into customers. 

Here, it's also important to consider IP and copyright. As with our previous point that highlights how AI-produced editorial is going to be bad for SEO, content marketing produced by AI will only ever be a clever reproduction of material that's already publicly available online. 

This means it won't be original, it can't be copyrighted and it risks falling foul of breaching IP rights from the original content creator. 

AI can save time on many tasks related to content marketing, but relying on it won't guarantee you results when it comes down to the original business objective of driving sales. 

Digital media will become autonomous 

Since the capabilities of ChatGPT became apparent a number of media companies have openly shared plans to adopt an AI-first approach. BuzzFeedquietly started publishing fully AI-generated articles that are produced by non-editorial staff and it's reported that CNET had already produced over 70 articles using AI. 

Again, we can't deny that AI is capable of producing news articles. But keeping our first principles approach in mind we need to consider the fundamental purpose of newsrooms: Providing trustworthy information, disseminated at scale. 

Yet when it comes to analyzing our third scenario it's important to remember that ChatGPT is just the latest in a long line of disruption stemming from technology. 

The transition from print to digital 20 years ago was a seismic, shift that forced news outlets to drastically reconsider the legacy business models. In order to monetize digital readership in this new era, publications largely fell into two categories: Those that generated revenue from paywalls and those that relied on ad revenue. 

Next came the trend of media sites constantly pivoting their content strategy to the will of Big Tech firms that had a dominant hold on online audiences. Rather than "finding a newsworthy story," the thinking changed to "find the SEO angle" or "find the Facebook angle." 

Here we can already have the evidence of how these trends played out. Writing headlines that performed well on social media didn't equate to loyal readers nor sufficient revenue from ads to be sustainable, as seen with BuzzFeed News closing, Business Insider axing 10% of staff and Vice having reached bankruptcy. In contrast, publications like the New York Times and Wall Street Journal that focused on paywalls and quality reporting have been able to retain millions of subscribers. 

Dan Abrams, chief legal correspondent for ABC and media entrepreneur behind Mediaite, says his company saw record engagement once it started to push away from social media and search distribution to focus on a content strategy that prioritized a specific readership.

AI may offer newsrooms a faster, cheaper option when it comes to publishing a regular cycle of content at unmatched speeds, but here it's crucial to remember some of the basic principles of economics: When supply is infinite, the price is close to zero. Newsrooms that rely on AI may be able to publish new articles at a record pace, but risk sacrificing demand-and value-as a result. 

Using first principles reasoning here actually offers the media industry a positive outlook. There's no point trying to compete with AI when it comes to efficiency; publications, rather, can compete by serving quality reporting to specialized audiences. 

What should company strategy for AI be?

Let's take a step back further from marketing to ask how does generative AI help your business improve? Iteratively. It has two purposes -- to add value on key goals, and to save time. And often the second is forgotten, when in fact, it's often the more important of the two. There's so much talk about adding value, particularly for longer-term work, and almost none about the fact that the work is adding time. 

The current hype surrounding generative AI is similar to the conversations around Big Data last decade. In 2011 McKinsey put forth that "Big Data will become a key basis of competition, underpinning new waves of productivity growth, innovation, and consumer surplus." 

Yet in 2023 we can see the promised benefits didn't materialize: only 26.8% of firms reported having forged a data-culture. 

AI may save time in the immediate, however it's important to remember that AI isn't generating new insights; it's a prediction engine that merely guesses the most likely next word. At the micro-level, it's helpful: "thank" is indeed often followed by "you." 

But at a macro level, its suggestions tend to homogenize, and they're only as good as the wisdom of the crowds, which is often the exact opposite of wisdom. 

Seeing through the hype 

Recent advances in AI have dominated headlines for most of this year. Though the technology is clearly impressive, it's also being surrounded by a great deal of hype. This is far from the first time that a new piece of software has been touted as a permanent game-changer and won't be the last. 

Given generative-AI's powerful content-producing abilities, it's natural that many of us across the media and marketing industries have been caught up in the hype. However, when taking a step back and looking at the situation using a first-principles mindset helps us see that ChatGPT won't spell the end for the industry. 

2023 IS ALMOST HALF OVER. HERE'S HOW LEADERS SHOULD CHECK ON THEIR KPIs

As June fades into July, 2023 will reach its halfway point. That means it's about time to check in on your key performance indicators.

KPIs are metrics used to measure business objectives and therefore a company's overall progress. Many revolve around financial performance--such as revenue, gross profit margin, and market share--while others concern areas like marketing, sales, and customers. Measurability is paramount across these metrics.

"You can't manage what you can't measure," says Joe Galvin, chief research officer at the executive coaching organization Vistage, quoting the adage often attributed to famed management consultant Peter Drucker.  

Instead of waiting until the end of the year to take stock, business leaders can scrutinize their KPIs at the midway mark to gauge what's working and what needs improvement. Here's how.

Crunch the numbers  

Financial indicators are, clearly, a focus for businesses hoping to grow. But small-business leaders have various other metrics to manage, oftentimes with little support, says Lilac Bar David, co-founder, and CEO of the small-business banking platform Lili. In particular, David says these leaders should focus on cash flow.  

"They have to understand if the cash that is coming from their business is sufficient. Do they need additional working capital? Do they need an additional cash flow product, whether it's credit or any other product?" David says. This may lead small-business leaders to realize that they need to renegotiate terms with customers or suppliers to expedite cash flow.

Or, if the business is doing well, they could consider investing that money back into the business, David adds.  

Small businesses should also think about reforecasting--refreshing predictions for how financial trends will impact KPIs--says executive coach Alisa Cohn. "What's their base case? What's their optimistic case? And what's their bear case?" she explains. Leaders should then have conversations at an executive level to make any adjustments, Cohn adds.  

Look beyond the dollar signs   

Numbers matter, but particularly now, leaders should not overlook KPIs related to personnel, Galvin says. Finding talent is a top concern for small businesses. Leaders can use the year's halfway point to evaluate head count needs, employee performance, and engagement, Cohn adds--the last of which declined for the first time in a decade in 2021 and then again in 2022, according to Gallup data.   

"A midyear check-in is also a good opportunity to reenergize everybody by asking the question, 'Where are we? How are we doing toward these goals?' and refocusing and reinvigorating people," Cohn says. 

Both Galvin and Cohn recommend making KPIs understandable and accessible to each employee now and throughout the year, and clarifying the part they play in their execution. "Workers want, fundamentally, two things: to know that their work is valued and important and that they're contributing to something bigger than themselves. And that's where those metrics come into play," Galvin adds.  

Resist the fear to shift gears 

Revisiting their KPIs, leaders may find that what they decided to measure at the start of the year needs to be altered or expanded. And if they see an opportunity to add or change a KPI, leaders shouldn't be afraid to do so, Galvin says.  

Though there's value in "stepping on the same scale year over year" to gather historical data, he adds that tracking something new could elicit new, useful insights. And, in adding or altering a KPI, leaders will "draw attention and focus to that item ... it forces and drives that level of thinking down through the organization," he says. 

Like all KPIs, any new additions should be specific, measurable, relevant, and achievable, and they should connect directly to the company's overall strategic plan, Galvin adds. "Ultimately, it's the leader who has to decide what he wants--what she wants the business to be focused on and where she wants to take it," he says. 

QUESTIONS THAT CAN DETERMINE IF YOUR STARTUP WILL BE SUCCESSFUL

Not a day goes by without someone telling me that they have an idea for the next big thing. Now, it could very well be that those people are right. But nine times out of 10, they haven't done any research to actually determine if their idea is doable. Here are five questions for founders to ask themselves when deciding whether to move forward with a startup idea.

1. Has anyone done it before?

I've spoken about this countless times, but before you write one line of code, do market research.

Figure out if someone has done it before you. Were they successful? Can your idea compete with theirs?

Many entrepreneurs like to skip competitive analysis, but without it, the chances of success are zero. Your million-dollar idea might be awesome enough that many people have already done it.

2. Who is your target audience?

Great, so you have an idea. Now, who needs this product? If you can't identify and define your target audience, you won't be able to decide on features or how to market the product later on.

An idea is just an idea until you build it and someone buys it. 

3. Is it a must-have or a nice-to-have? 

This one is crucial. If you're building something that's just nice to have, by definition, it'll be less successful than something that is a must-have.

That's not to say that people don't buy things for convenience. They do. But perhaps consider slightly pivoting to add something to your product that people feel they can't live without.

4. How big is the market?

So, you've determined that the market is not too saturated and that there is a target audience for your product. Great. Now ask yourself how big that audience is.

It's simple math. Think about the unit economics here. How many products do you need to sell to achieve profitability? Is that a number you can achieve? If not, perhaps consider going back to the drawing board.

If you find that the market is too small and not enough people will buy this thing, well, you know what to do.

5. How much capital will I need? 

This one is debatable. Think about your costs and your burn rate. How much money do you need to transform this idea into a business?

It's a chicken-and-egg situation here. You need money to build a product, but you need a product to raise money.

So ask yourself, can you build a minimum viable product with little capital? If not, you might find yourself struggling to keep your head above water with both time and money wasted. 

An idea is just an idea. If you think you can just run with it without preparation, you're in for a wake-up call.

WARRENT BUFFETT SAYS PRACTICING THESE 3 GOOD HABITS WILL BE A DIFFERENCE MAKER

Warren Buffett, the legendary investor and one of the richest people in the world, is renowned for his financial acumen and profound insights into life and success.

One such gem of wisdom from Buffett revolves around the underestimated power of habits. He once said:

I think that people underestimate -- until they get older -- they underestimate just how important habits are, and how difficult they are to change when you're 45 or 50, and how important it is that you form the right ones when you're young.

Buffett's observation about the difficulty of changing habits as we grow older is a profound truth that many of us come to realize later in life. The challenge lies in identifying the right habits to cultivate as we age. Not all habits are created equal. Some habits propel us forward, enabling personal growth and achievement, while others hold us back, leading to stagnation and dissatisfaction.

The key is to identify the habits that align with our values and long-term goals, and consciously nurture them. Here are three to consider:

1. The habit of living with integrity

Living and working with integrity has numerous benefits, both personally and professionally. When you work with integrity, people trust you. They know you are reliable and ethical and won't cut corners. This can help you build stronger relationships with colleagues, clients, and customers. Also, when you work with integrity, you are more likely to have a positive reputation, which can open up new opportunities for you and help you advance in your career. Buffett once said, "In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first one, the other two will kill you."

2. The habit of a growth mindset

Buffett is a strong advocate for lifelong learning. One famous Warren Buffett rule he follows religiously: Go to bed a little smarter each day. He calls it the Buffett Formula. He says, "That's how knowledge builds up. Like compound interest." Buffett knows that the mind is the most powerful weapon to succeed in business. He is famous for his voracious reading habit, spending up to 80 percent of his day reading. He has famously said, "The more you learn, the more you'll earn."

3. The habit of a simple lifestyle

Despite being one of the wealthiest individuals, Buffett has a frugal lifestyle. He advises against excessive spending and unnecessary debt, suggesting that individuals live within their means and focus on saving and investing for the long term. Instead of accumulating more wealth for personal gain, Buffett has made substantial contributions to various philanthropic initiatives, particularly in the areas of education and health care.

Warren Buffett's timeless wisdom serves as a reminder for all generations to appreciate the profound impact of habits. By embracing the power of habits and consciously cultivating the right ones, we can set ourselves on a path to success, fulfillment, and a life well-lived.

NINE TOP DESIGN TRENDS THAT END DESIGN FATIGUE AND HELP YOUR BUSINESS STAND OUT

Maximilian Fleitmann, an Entrepreneurs' Organization (EO) member based in Berlin, Germany, is the managing partner of Wizard Ventures and co-founder of Magic Design, a monthly design subscription that helps startups and small to medium-sized businesses with all their graphic design needs. We asked Max which design trends will get your brand noticed. Here's what he shared:

In our ever-changing world, businesses must adapt quickly, especially when it comes to brand design. Yes, design fatigue is a thing. It's up to you as the leader to ensure that your company creates a unique and memorable customer experience, which requires creating and consistently updating numerous visual assets. Companies that prioritize design as an integral part of their DNA and remain up-to-date on the latest trends outshine competitors and attract new customers. 

These are the top design trends that your business can utilize to its advantage right now:

1. Asymmetrical Layouts

Increasingly more brands are using asymmetrical layouts instead of traditional grid-based structures. The advantages are clear: Such configurations offer a unique, eye-catching design that conveys a sense of creativity and individuality.

Do be aware of the challenges with asymmetric layouts. Use them with care since there is a risk that the design may feel chaotic or difficult to navigate.

2. AI-Generated Design Assets

As you scroll through your newsfeed, it's hard to dodge AI headlines. AI will change the creative industry forever, and I expect this year to mark a significant step forward in the automated creation of images, designs, and even full user interfaces.

If the technology delivers what it promises, AI-generated designs will help businesses scale their graphic design more efficiently and consistently. 

3. Bold Typography

There's never been a better time for your company to use bold typography to make a statement. Businesses with a strong brand identity stand out, and bold typography can help solidify your visual hierarchy. Furthermore, it lends a sense of confidence and authority--a benefit to most brands.

4. Custom Illustrations

Why not make your brand more recognizable and set your business apart by using custom illustrations? As long as they align with your other design assets and company values, you can use custom illustrations across all marketing materials--including websites, social media, and even packaging. I expect more brands to leverage the power of custom illustrations to tell their story and create a cohesive visual identity.

5. Dark Mode

There has been a steady rise in dark mode design over the last few years, and it's not going away anytime soon. They are especially attractive to younger consumers, who seem to have an affinity toward a dark format's elegance, sleekness, and sophistication. As a collateral benefit, dark mode can provide a better user experience in low-light environments. However, assessing whether a dark design suits your brand is imperative, as it may not be ideal for displaying your specific content.  

6. Minimalism

Another popular trend in the last couple of years is minimalism--and it's here to stay. Good design is about leaving out as many elements as possible and simplifying to feature only core components. Minimalism helps users navigate the design format and, as a result, makes it more effective.

7. Authentic Photography

In a time when stock photos and AI-generated images are everywhere, users notice real people and authentic photography. As more brands lean toward AI images, I expect a strong countermovement in support of traditional and minimally edited photography. 

Similarly, the time for stock images is over. Users are fed up with seeing the same impersonal images scattered throughout company websites and socials. If you continue using stock images, your customers may eventually lose trust in your business.

8. Global Outsourcing of Design

One of the most significant trends in the design realm is outsourcing your company's design work. Superior design is not limited to San Francisco, New York, or London--it can be found worldwide. Talented up-and-coming designers are plentiful, and businesses can profit massively from working with the global freelance workforce. Your business will save time, money, and resources because you won't need to hire and train in-house designers. Instead, search the global talent pool to identify the best designers for your specific needs. 

Outsourcing design is easier than ever and is becoming a viable option for businesses of all sizes. There are also increasingly more startups that help businesses outsource design without the hassle of traditional design agencies.

9. Gradient Effects

Gradient effects are a popular digital design trend that is becoming even more relevant. Gradients add depth and dimension to various design assets, including backgrounds, typography, and illustrations. As we move forward, look for a brighter and bolder color palette--especially the augmenting of pastel colors.

If your company's design has grown stale, refresh it with one--or several!--of these timely trends. Keeping up with design trends and selectively implementing a few new looks can bring major advantages. Thoughtful well-executed design has the power to attract and retain customers, build brand loyalty, and keep your business ahead of the competition.