Google Shows Step-Changes in AI Development

What happened?

Google released a host of new AI tools at its IO day. These tools represent a significant leap in capability, with the video generation tool, Flow, being the most impressive. As the video below demonstrates, Flow can now generate videos that are nearly indistinguishable from real images.

Why Does This Matter?

• AI development is picking up pace: AI is advancing rapidly from providing advanced search capabilities to performing real-world tasks. We have reached the steep part of the S-curve.
• Expect significant productivity gains: As with filmmaking, many industries will soon benefit from incorporating AI into their processes, sometimes dramatically.

What’s the counterpoint?

• The computing cost is exorbitant and not economical: Currently, AI models operate at a loss because enormous computing power is required for even the most basic tasks. However, it seems likely that these costs will decrease.
• AI will cause layoffs: AI is likely to reduce entry-level white-collar jobs, potentially leading to unemployment. However, past productivity increases have resulted in higher overall employment when economic gains are reinvested.