ChatGPT, the revolutionary conversational model released by OpenAI, was made public on November 30th, 2022. Since launching, it has shaken up different sectors, most notably the financial markets to their core. This power has spurred important, critical dialogue in the state about the vision for artificial intelligence (AI). Smart infrastructure The world is just about three years on from the birth of ChatGPT. Its long-term effects are still being determined, leaving industry professionals feeling both hopeful and fearful.
Described by OpenAI as “a model called ChatGPT which interacts in a conversational way,” the application has become synonymous with the rapid evolution of AI technology. The emergence of ChatGPT has already changed the way people and businesses can communicate with machines, opening new doors to more natural interactions. The times they are a changin’. That economic sea change did not escape the attention of policy makers. According to Bloomberg, ChatGPT has already moved the market in a big way.
The impact of ChatGPT goes far beyond just how people are using it, though—it has profoundly changed investor sentiment and market dynamics. The S&P 500 has made a quiet but dramatic sea change. Seven companies alone now represent 35% of its weighting, a dramatic increase from roughly 20% three years ago. We have previously commented on this heavy concentration and its implications for market stability, including the risks inherent in dangerous developments like this one.
Commenting on the volatile nature of AI investments, OpenAI CEO Sam Altman expressed concern during a dinner with journalists in August, stating, “Someone is going to lose a phenomenal amount of money in AI.” His comments highlight the difficult position many stakeholders are put in. They’re constantly working to stay a step ahead of the rapidly evolving world of artificial intelligence.
Industry analysts are just beginning to process the broader implications of ChatGPT’s meteoric rise. As Charlie Warzel from The Atlantic recently noted, we are now all living in “the world ChatGPT built.” He described this new reality as “defined by a particular type of precarity” and noted that people are “perpetually waiting for a shoe to drop.” Warzel’s op-ed is a compelling reminder that with all major technological breakthroughs comes plenty of unknowns and unintended consequences.
Looking forward, experts widely expect that the real ramifications of ChatGPT won’t be fully felt for years to come. In another three years, we will find out if the hope and promise we are all feeling about this technology was justified. To Bret Taylor, former co-CEO of Salesforce and a familiar name from many tech circles, AI is already changing the economy in radical ways. He stated, “AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future.”
The geopolitical ramifications of AI are starting to make headlines. Karen Hao has pointed out that AI has “already grown more powerful than pretty much any nation-state in the world” and is “rewiring our geopolitics, all of our lives.” These findings are evidence of the deep impact AI technology can have on communities.
As debates over ChatGPT’s long-term impact play out, experts in the field will be closely monitoring its growing presence in our society and economy. That conversation is an important step toward ensuring that any new innovation is pursued responsibly and with a clear understanding of where it can pose risk.
