When considering the implementation of conceptual AI in practical scenarios, CFOs express legitimate concerns about potential risks. Andrew McAfee, the principal research scientist at MIT, issued a cautionary message to CFOs regarding this innovative technology: “Risk tolerance needs to change.” He emphasized the tangible risk of being inflexible in adapting to new technologies.
At the Fortune CFO Collaborative breakfast in Boston on November 9, hosted in partnership with Workday and Deloitte, McAfee engaged in a discussion with Fortune CEO Alan Murray. The event brought together 40 executives from major corporations to delve into the current priorities of financial leaders, revealing a continued interest in relational AI.
McAfee, who also serves as Google’s inaugural visiting fellow for technology and society, highlighted the pervasive nature of AI across various sectors of the economy. Drawing from the past 25 years of technological advancements, he predicted that AI would play a pivotal role in distinguishing successful entities from less successful ones, accelerating the progress of winners beyond expectations.
One of the primary concerns associated with generative AI, as McAfee pointed out, is the potential for hallucinations—responses that may seem plausible but are factually incorrect or contextually misleading. McAfee stressed that addressing these issues requires a deep-rooted technological approach, with software companies actively working to mitigate such risks.
Following OpenAI’s introduction of ChatGPT in November 2022, the surge in conceptual AI development gained momentum. OpenAI’s research, published in May, highlighted the efficacy of “process supervision” in reducing illusions by rewarding AI models for correct lines of reasoning rather than solely focusing on the outcomes.
McAfee encouraged businesses not to shy away from experimenting with conceptual AI due to the risks involved. He cautioned against a passive approach of waiting to emulate competitors, emphasizing that embracing AI innovation is essential for long-term viability and competitive advantage.
In his latest book, “The Geek Way: The Radical Mindset that Drives Amazing Benefits,” McAfee explores the unconventional yet effective strategies employed by tech enthusiasts in Silicon Valley. He underscored the importance of deep immersion, experimentation, and iteration in problem-solving, suggesting that traditional businesses could learn valuable lessons from the geek culture to maintain their competitive edge.
Looking ahead to 2024, McAfee projected that generative AI would remain a top priority for innovators. For further inquiries, please contact Estrada Sheryl at [email protected].
Leaderboard
Effective February 15, Ares Capital Corporation (Nasdaq: ARCC) appointed Scott Lem as CFO, promoting him from his previous role as key accounting officer, vice president, and treasurer. With a tenure at Ares since 2003, Lem has held various senior finance and accounting positions within the company’s capital and credit divisions.
Similarly, Steve McClanahan assumed the role of CFO at Martin Supply, leveraging his extensive experience from senior management roles, including CFO and COO, spanning 25 years at ANConnect (formerly Anderson Vendors).
Significant offer
A recent report from the Pew Research Center revealed a notable shift in the gender composition of high-paying professions, with women now constituting 35% of employees in the top decile of wage earners—an increase from 13% in 1980. The study analyzed data from the 1980 census and the 2021 American Community Survey, highlighting the rising presence of women in traditionally male-dominated fields such as medicine, dentistry, and actuarial science.
Despite these advancements, Pew noted that women remain a minority in nine of the top 10 high-paying professions, excluding pharmacists, where they represent 61% of the workforce. The report sheds light on the evolving landscape of gender diversity in professional occupations.
Going more in…
Morgan Stanley economists outlined the immediate implications of generative AI on the workforce and economy in their latest publication, “How Generative AI May Alter Work.” Seth Carpenter, the global chief economist at Morgan Stanley, projected that current generative AI technologies could impact up to a quarter of existing occupations, potentially augmenting or transforming them, with estimated associated labor costs reaching up to \(2.1 trillion. This figure could rise to 44% of affected jobs and \)4.1 trillion in labor costs within three years.
Overheard
In a notable development, Bill Gates, the co-founder of Microsoft Corporation, predicts a transformative shift in computer usage driven by AI advancements. Gates anticipates a paradigm shift where AI agents, capable of natural language interactions and multifunctional tasks, will revolutionize the technology sector, reshaping the way individuals interact with computers.
