AI could perhaps diminish human closeness, as face-to-face contact becomes less frequent. The technology will likely automate millions of jobs. It may outsmart its creators and precipitate dangerous consequences, thanks to its ability to think and learn. AI creates convincing deepfakes that influence people to take erroneous actions.
As humanity designs safeguards against many such risks, it is also banking on AI to positively transform our lives.
Mark J. Penn is an American businessman, political strategist, and author. He is the Chairman and CEO of Stagwell Inc., a Nasdaq company, with employees in 35+ countries and over US$2.5 billion of annual revenue. Stagwell is an early adapter of AI. We invited Penn to share his expertise in this exclusive interview with TRENDS.
What is the ultimate economic and business impact of AI on humanity?
AI is the driving force in productivity and technology for the next few years. We don’t yet know the full extent of its consequences, such as how it could affect warfare, the military, crime, and other aspects of life. We assume people will use this technology in benevolent ways.
The biggest sector for AI will be manufacturing because it will bring in the next generation of automation. In marketing and advertising, it will revolutionize how images, words, and sounds are created, providing more sophistication to arts and communication fields.
Its deep learning abilities allow it to predict, analyze, and diagnose. It will support medical fields, helping find cures much more easily.
How do you see productivity evolving with AI?
The height of efficiency is represented by just-in-time manufacturing, and AI allows better coordination for all of the data inputs. Over the last few years, manufacturing a car would have taken up to 48 months, getting all suppliers in shape and assembling components. By the time it’s done, the car is out of date. AI will efficiently speed that up at all phases of manufacturing.
On the marketing side of things, it will better identify target markets at lower costs.
Consultancies will greatly enhance their abilities to advise clients thanks to AI’s ability to summarize and analyze large and varied data sets. AI will also free up more time to do more sophisticated tasks.
Can we quantify AI’s economic role in terms of GDP growth?
AI is a little bit of a case of the rich getting richer. Its impact on developed economies versus more agrarian societies is likely to be much greater. It will greatly develop industrialized and information economies, especially with job creation. I don’t think anybody could quantify AI’s impact on GDP growth, today. We’re seeing that NVIDIA is making the chips that tech companies are buying and installing in data centers. We know this is going to draw an enormous amount of computing power, generating new AI applications which are in their infancy, today.
The introductions of the PC and the phone democratized the ability of anyone, anywhere to connect, engage and do business at scale. But I’m not so sure that AI, at least initially, will have that same kind of impact because of all the support mechanisms that it needs.
Is there a role for small language models (SLMs) in a market dominated by LL Ms?
I think there’s a vast market for SLMs. There are many individual data sets or groups of information around which to build small models using AI.
We recently launched the RealClearPolitics.com site where one could ask any related question and it will effectively search that data set and provide the information. Many future data sets will be accessed in this fashion using custom-built models to make them easily accessible and much more usable than they’ve ever been.
How do you see virtual agents developing?
I think virtual agents are going to develop as the chief brand representatives or ambassadors of companies, powered with many human-like skills, dialects, cultural backgrounds, and languages. Companies will not just choose their logos, but also their emblematic chatbots, which are the primary interface consumers will select when dealing with these organizations.
How can regulators address challenges associated with deepfakes, privacy issues, and bias?
It starts with appropriate disclosure. People are usually confused about whether a website is sponsored or organic. They fail to clearly identify a sales pitch or ad from more important things for consumers like personal and medical information.
Can AI be used to counter or solve economic recessions, currency depreciation, climate disasters, and other calamities?
I don’t see AI as the cure-all for all of civilization’s problems. It is going to solve some problems but also create others.
AI will give tech innovators, the likes of Elon Musk, the ability to create the next generation of robots and homebots. That will be the future technological development that impacts our daily lives.
