How generative AI will work

In Ben Evan's latest newsletter, he lays down some criteria for what he believes will make generative AI and ChatGPT work. Firstly, the software needs to be embedded in a system that has lots of information about the user. Social networks, search engines and mobile operating systems all tick that box.

Then it needs to be run on small power-efficient devices paid for by the users. For example, an iPhone. Building massive offsite servers is very expensive. If the users are paying for the device, then the business model is viable.

Lastly, for an AI business model to work, the energy requirements also need to be absorbed by the mass market. Again an iPhone ticks this box. Currently, when a user asks AI to do something, a data centre uses a relatively large amount of energy to generate an answer, which gets expensive, particularly if the AI service is being offered for free.

This is Ben's conclusion: Apple is perfectly poised to offer this decentralised AI model through their massive network of devices, which all use the same operating system.

Apple spelled out its generative AI plans at the recent WWDC, which has been widely covered in this newsletter. We are very excited to experience and use the added features when it is launched towards the end of the year.