DEEPMIND CO-FOUNDER WARNS OF AI HYPE AND GRIFTING

Is artificial intelligence overhyped? Demis Hassabis, co-founder and CEO of Google's AI research lab DeepMind, says the answer is yes. Hassabis told the Financial Times the science and research around the technology is "phenomenal," but the investor frenzy is bringing the type of attention and potential scams that plagued the cryptocurrency space. Substantial investment into generative AI startups "brings with it a whole attendant bunch of hype and maybe some grifting and some other things that you see in other hyped-up areas," he told FT. "In a way, AI's not hyped enough but in some senses it's too hyped." Investors have raced to get in on what they perceive to be an AI goldrush, particularly on the back of the launch of OpenAI's ChatGPT in 2022. Venture capital investment in generative AI surged about 270 percent to $29.1 billion in 2023, according to Pitchbook. Regulators have begun to scrutinize companies making misleading AI claims. Securities and Exchange Commission Chair Gary Gensler, for example, said at a December conference that companies "shouldn't AI wash." The agency is reportedly examining whether publicly traded companies are incorrectly claiming products use AI even as investors rush to funnel their dollars into publicly traded AI leaders including Nvidia, Microsoft and Google parent company Alphabet. Concerns about grift in the cryptocurrency space to which Hassabis drew a parallel with AI, were well-founded, as shown through the rise and dramatic collapse of crypto hedge fund and exchange FTX. As for the actual technology underpinning generative AI, Hassabis said it is well deserving of the excitement. "I think we're only scratching the surface of what I believe is going to be possible over the next decade-plus," he told FT. In terms of its application for businesses, Vanguard economists anticipate it could take time for companies to take full advantage of AI, but that the technology could potentially boost productivity in 80 percent of occupations by the second half of the decade, The New York Times reported. DeepMind, which is responsible for Google's generative AI model Gemini and other recent projects, aims to achieve artificial general intelligence, a goal shared by ChatGPT-maker OpenAI and its CEO Sam Altman. DeepMind recently announced a new organization focused on AI safety, according to TechCrunch. Hassabis was recently knighted in the UK for "services to AI," he confirmed in a tweet. BY CHLOE AIELLO, @CHLOBO_ILO