The State of Artificial Intelligence at the End of 2023

The state of artificial intelligence (AI) in 2023 is characterized by significant developments, both in terms of technological advancements and the broader implications for society and industry:

Generative AI Advancements: The field of AI has seen explosive growth in generative AI tools, with wide adoption across various business functions. This growth has led to a surge in organizational investment in AI, driven largely by advancements in generative AI technologies. These tools are most commonly used in marketing, sales, product development, and service operations​​.

Impact of Large Language Models (LLMs): Large language models, like GPT-2 and PaLM, have significantly scaled up in size and expense, reflecting the rapid advancement in AI capabilities. However, this has also raised concerns about the high environmental costs associated with training these large models​​.

AI Controversies and Ethics: There has been a noticeable increase in AI-related controversies and ethical concerns. The AI, Algorithmic, and Automation Incidents and Controversies repository reports a significant rise in reported issues, highlighting the growing awareness and scrutiny of AI's societal impact. Correspondingly, there's been an increase in research and academic papers focusing on AI ethics and fairness​​.

Labor Market and Corporate Investment: The demand for AI skills has risen across all sectors, with a notable increase in AI job postings. While corporate investment in AI dipped slightly in 2022 from 2021 highs, it has grown significantly over the past decade. This trend underscores AI's growing influence across various industries​​.

Global AI Developments: China has emerged as a leader in robotic installations, representing a significant portion of industrial robotic installations worldwide. In academia, there's an increasing trend of AI PhDs choosing industry jobs over academia or government positions​​​​.

Legislation and Government Investment: Various countries are passing AI-related legislation, with the U.S. leading in the number of laws passed. The U.S. federal budget for non-defense AI research and development has also seen a steady increase, reflecting the government's growing focus on AI​​.

Diversity in AI: There has been progress in diversity within the AI field, with more women graduating with computer science degrees and a broader ethnic diversity among graduates. Additionally, more women are being hired as faculty in North American universities in computer science, computer engineering, and information fields​​.

In summary, 2023 has seen substantial advancements in AI technology, particularly in generative AI, alongside growing concerns about ethics, environmental impact, and the need for legislation. The AI industry is also influencing the labor market and experiencing increased diversity among professionals and academics.

Christopher Sanchez

Christopher Sanchez is an accomplished technologist, entrepreneur, investor, author, and advisor. He serves as a Senior Advisor to G7/G20 Governments, top academic institutions, institutional investors, startups, and Fortune 500 companies. He has been featured in WIRED, Forbes, the Wall Street Journal, Business Insider, MIT Sloan, and numerous other publications.

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