Generative AI

S. Huang, P. Grady, and GTP-3, Generative AI: A Creative New World, Sequoia Capital (紅杉資本), September 19, 2022.

A powerful new class of large language models is making it possible for machines to write, code, draw and create with credible and sometimes superhuman results.

Human and machine cooperation to enhance productivity: 

Generative AI is well on the way to becoming not just faster and cheaper, but better in some cases than what humans create by hand. Every industry that requires humans to create original work—from social media to gaming, advertising to architecture, coding to graphic design, product design to law, marketing to sales—is up for reinvention. Certain functions may be completely replaced by generative AI, while others are more likely to thrive from a tight iterative creative cycle between human and machine—but generative AI should unlock better, faster and cheaper creation across a wide range of end markets. The dream is that generative AI brings the marginal cost of creation and knowledge work down towards zero, generating vast labor productivity and economic value—and commensurate market cap.

The fields that generative AI addresses—knowledge work and creative work—comprise billions of workers. Generative AI can make these workers at least 10% more efficient and/or creative: they become not only faster and more efficient, but more capable than before. Therefore, Generative AI has the potential to generate trillions of dollars of economic value.

Market Landscape