Tech Trends 2024: AI and electric vehicle deals

In the realm of technology, 2023 will likely be remembered as the year when generative AI, a type of artificial intelligence that can create content such as computer code, artwork, and essays, became mainstream. Microsoft-backed ChatGPT was a pioneer in this field, launching in late 2022, and since then, numerous competitors have entered the market.

One of the most significant developments occurred this month when Alphabet, the parent company of Google, unveiled Gemini, a new AI system that will be incorporated into Google's products, including its chatbot and search engine. Alphabet asserts that Gemini surpasses the current version of ChatGPT in performance. However, OpenAI, the creator of ChatGPT, is not resting on its laurels. The company has announced plans to release a more powerful version of its software in the coming year.

The generative AI industry has attracted substantial investment, with venture capital firms investing $21. 4bn in generative AI start-ups by the end of September, according to PitchBook. This figure significantly exceeds the $5. 1bn invested throughout 2022. However, some industry observers, such as Ben Wood, chief analyst at CCS Insight, caution against excessive optimism. Wood predicts a 'cold shower' for generative AI in 2024, citing several potential obstacles that could hinder its short-term progress. He notes that developing and operating a generative AI system is costly, requiring substantial computing power and expensive computer chips, which are currently in short supply. To offset these costs, Wood anticipates a shift towards hybrid AI systems, where some processing is performed locally on devices such as laptops or smartphones. He also suggests that regulatory and legal challenges could temper the current enthusiasm for generative AI, potentially forcing companies to roll back some of their AI-powered services to comply with regulations.