Artificial Intelligence Management Industry Update Q2 2023

• Hollywood and the broader entertainment industry involving the creative arts, such as gaming, will likely be a fast adopter of generative AI’s capabilities. Activities ranging from editing background images to generating high fidelity content have the potential to be accelerated forward from a timing perspective and reduced from a cost standpoint. As production budgets decrease with the increased use of AI, more stories will be able to be told across film and television, which should, counterintuitively, heighten demand for the writers and creators of stories.
• “Our partnership with CAA comes from focusing on using this technology in really interesting ways at the forefront of entertainment, but it’s also focused on how we can empower individual people. In this case, it enables actors to own and control their data from the real world—their hyperreal identities [the biometric AI model made of photographic information captured in extremely high definition.] … It’s really going to change the way in which we create content, period, because ultimately using generative AI is a hundred times cheaper than using 3D modeling and traditional VFX and CGI and all that. Ultimately, it’s going to be cheaper than setting up a camera.” – Tom Graham, (Co-Founder & CEO, Metaphysic.ai), Fast Company, “AI will destroy Hollywood as we know it,” 4/19/2023.

• Some elite venture investors, such as Chamath Palihapitiya, are also calling for the United States government to regulate AI.  Their view is that with development cycles that appear to be every few days, on a compounded basis, AI models interacting with each other will be have the potential for significant disruption in the hands of bad actors.

• “If you invent a novel drug, you need the government to vet and approve it (FDA) before you can commercialize it.  If you invent a new mode of air travel, you need the government to vet and approve it (FAA) before you can commercialize it. If you create a new security, you need the government to vet and approve it (SEC) before you can commercialize it. More generally, when you create things with broad societal impact (positive and negative) the government creates a layer of review and approval.  AI will need such an oversight body. The FDA approval process seems the most credible and adaptable into a framework to understand how a model behaves AND its counterfactual. Our political leaders need to get in front of this sooner rather than later and create some oversight before the eventual/big/avoidable mistakes happen and genies are let out of the bottle.” – Chamath Palihapitiya (Founder & CEO at Social Capital), Twitter, 4/11/2023.

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below. Footnotes and sources are noted in the deck.