Goldman Sachs Exchanges

Generative AI: hype, or truly transformative?

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Jul 18, 2023
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INSIGHT

Generative AI's Distinct Capabilities

  • Generative AI differs from previous AI by creating various content formats like text, video, and images using natural language.
  • It uses natural language commands, unlike traditional AI, which focuses on simulating human behavior and predicting outcomes.
INSIGHT

Accessibility of Generative AI

  • Unlike prior AI, generative AI doesn't require users to write code or collect extensive training data for specific tasks.
  • Foundation models are pre-trained on massive datasets, making diverse capabilities accessible via APIs and ushering in 'Software 3.0'.
ANECDOTE

AI's Impact on Legal and Creative Industries

  • Conviction invested in a legal tech company using AI to analyze thousands of contracts simultaneously, replacing junior legal teams' initial work.
  • They also invested in image generation and analytics automation companies, expanding software's scope beyond traditional boundaries.
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