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As the ChatGPT excitement fades away, the capital markets are beginning to wonder whether the LLM gold rush is a bust.
Over the past two years, Big Tech – Google, Meta and Facebook – have sunk hundreds of billions of dollars each in training LLM models and continue to burn hundreds of millions more in inference computing every week as hundreds of thousands of users freeload (or pay pennies) to flood the model with queries that are mostly borne out of curiosity or laziness with not real economic, quality or productivity value add. Further, hundreds of angels and VCs have pumped billions into thousands of AI-driven or AI-adjacent start-ups.
Although trillions of dollars have been invested in the LLM ecosystem, the business and economic case has yet to emerge.
In the B2B segment, corporations are busy building machine learning (ML) models that sit atop their proprietary datasets and whatever other data they can access. The ML models (the line between ML and AI) are, in essence, semantic until the day AGI emerges. Predictive pattern building based on complex, structured data and signals will be at the heart of these models. These models will access available LLMs but at the periphery to absorb unstructured data and speed up documentation.
In the academic and professional world of science and technology research, deep-learning-based ML/AI is an increasing reality. For example, AlphaGo is at the core of research into discovering and synthesising new proteins that will drive the cutting edge of genetics and drug discovery.
By contrast, the economic case for AI in the B2C arena still needs to be clarified.
The trillions being spent on creating LLM models and inference testing them by offering them free (or nearly free) to millions of consumers can be likened to the early days of optical-fibre-based bandwidth building, much before the emergence of the deluge of mobile Internet, video-sharing, and streaming. In the final years of the nineties and the early oughts, many wrote off the vast investments in the optical fibre network as white elephants.
History proved otherwise.
Device-based Edge AI will create an economically viable future for AI in the B2C arena. This future will be predicated on the investments being made today in LLMs, which have an exponentially increasing number of parameters, increasingly customised hardware and software, and a wide variety of specialist AI agents sitting atop increasingly capable LLMs. Breakthroughs in design will decrease the cost of specialist LLM cloud farms and their environmental impact through greater energy efficiency and better green energy solutions.
The contours of the device-based Edge AI that will drive the emergence of a viable B2C market for AIs are beginning to emerge.
Samsung and Google have launched smartphones that are touted to incorporate device-based AI. A slew of laptop brands are also touting AI credentials. However, by the use cases these brands tout, they are marketing gimmicks that harm instead of heralding the B2C AI era.
Apple’s Intelligence could be the actual start of the device-based Edge AI (EAI) B2C era.
The launch event of the iPhone 16 mentioned the phone’s AI capability but did not present any use cases. In all the usual slickness of the launch, what went almost unnoticed is that while the hardware and probably the operational software were on the phone, Apple Intelligence would be ready for the consumer to use only a few months down the lines. The reasons could be Apple’s philosophy of not putting out anything half-baked and even regulatory approval.
Reading between the lines, Apple Intelligence (AI) is the first AI engine focused on deciphering the individual, unlike the written/spoken word, visuals, and video at large that the LLMs are focused on.
Smartphones are rich repositories of an individual’s lifestyle, interests, attitudes, and behaviour–a finer-grained repository permanently etched. Further variables like smartwatches and fitness rings will continue to add vital data to this repository. With the individual’s permission, the on-device AI can capture more information from conversations, laptops, office computers, and the increasingly innovative IoT devices at home.
A smartphone-based Edge AI can then be the counterpart of the LLM – the Deep Personal Model (DPM) that is continuously trained to predict and anticipate. An individual needs to interact with her and the world to meet them. For example, if an individual is preparing for an educational test, the DPM could decipher her areas of weakness, alert her to them and provide specific inputs to overcome them. It could create a section of the DPM, her avatar as her professional – an architect, a journalist, a management consultant. This professional avatar could handle her professional communications and routine tasks.
Another use case is for the DPM to detect signs in her vitals and situational stress and correspond with her doctor’s professional DPM avatar to get remedial recommendations.
The DPM could take over the essential consumer functions of anticipating and ordering products within set limits and in interactions with market-facing AIs that allow her to access all relevant market knowledge.
Of course, the consumer will be in complete control of the DPM regarding what personal data it can access and what functions it can perform for the consumer. She would also have the option to turn off and turn on the DPM. She decides based on her perception of access and utility trade-offs.
The DPM will be charged as a service, much like Apple, at various subscription levels. A few years into the emergence of device-based DPMs, the device could come free with a subscription to a DPM, making the DPM market the largest B2C category in the world.
The crucial aspect of a DPM’s success is the assurance of privacy and control for the individual. That’s why the DPM must reside on the device, not the cloud. Equally important will be trust in the brand offering the DPM. Apple with its brand positioning on privacy and its track record on that aspect has a leadership advantage in that area
PS: I first wrote about a concept called “Concierge Intelligence” in my first MxMIndia column published on Jan 6th 2022; thirty-two short months later, the idea of what I now call DPM seems to be around the corner.
Travelling with pets in India is a challenge. There are limited options for transport and accommodation. Planning a getaway often means leaving your furry friend behind or struggling to find pet-friendly facilities. Tata IHCL Seleqtion is a new experience in pet-friendly accommodation.
Pet Travel
In local travel, most cabs on hire refuse to allow pets. Drivers of Ola and Uber scoot and refuse the ride the moment they see a pet. I don’t know why they cannot add a pet button in their app so drivers who are comfortable with pets pick the service. The cars you hire do not want your pet friends. The pet transport services available in limited cities are too costly. While three-wheeler autos in Mumbai tend to be more accommodating, they’re okay for short rides and are restricted to the suburbs. The only viable option for outstation travel is the First AC on trains, which is restrictive and often unavailable. And then you have to have the whole cabin or the coupe, or you could be denied travel at the last minute of any passenger objects. I have first-hand experience with it, and here is how to travel with Pet on the train. And there are simple steps to make it even better.
Pet Accommodation
When it comes to finding a hotel that welcomes pets, it’s like searching for a needle in a haystack. The situation is improving with time, and there is a definite business field there for pet-friendly accommodation.
The Tata IHCL Seleqtions Hotels have changed the canvas. This pet-friendly chain across the country has opened doors to a new travel experience, and my recent stay at their Mumbai property, The President, was nothing short of exceptional.
Welcoming the Furry Pet Friends
From the moment we checked in, the hospitality extended to the family and my pet, Milo Kotnala, a 7-year-old Beagle, was heart-warming. We got the room on the top floor with the brilliant view of the bay and port because of Milo—as there were two other rooms where pets had checked-in and maybe pet-friendly rooms are on the upper floors.
Our room had a special ‘PAW SPOTTED HERE’ tag on the door, letting the service staff know a pet was inside. A small but thoughtful detail set the tone for the experience ahead. Inside the room, my pet was greeted with his own set of amenities—a pet bowl, pee pads, a complimentary meal pack, a poo bag, and even a cosy pet bed. The little touches announce loudly that pets here aren’t just tolerated but genuinely welcomed.
Pet-Friendly Spaces and Dining
What stood out further was the allowance for pets in designated lobby areas, where we could enjoy breakfast and meals together. It was a relief not to have to worry about leaving my pet behind while dining, a common challenge at other hotels. Watching other pet owners with their furry companions share this unique experience was heartening. It’s rare to find such spaces in India, but Tata IHCL Seleqtions sets a brilliant example of what pet-friendly hospitality should look like.
Taj President has Herb-House, a poolside pet-friendly bistro that offers a curated menu for pets, pet brunches, and hi-tea. It also has pet minders, a special menu for pets, and more – though in our short stay, we could not experience them all.
The Pet-friendly Room Experience
The superior room, though small—a characteristic of Mumbai’s space constraints—was perfect for a couple and a small pet (under 20 kg). The layout was functional, the bedding was plush, and the ambience was comfortable for humans and pets alike. For larger pets or more spacious settings, there were other rooms that one could check in. However, other Tata IHCL Seleqtions properties across the country promise even bigger and more open spaces. But given that we were in the heart of Mumbai, this size at President IHCL Seleqtion was more than satisfactory.
Expanding Horizons for Pet Owners
IHCL Seleqtions has paved the way for stress-free travel with pets, a much-needed respite for pet lovers across India. Their network of pet-friendly properties is growing, and with it, the hope is that travelling with your pets will no longer be an obstacle ( at least for accommodation) but a joy. If you’re a pet owner looking to explore without leaving your furry friend behind, Tata IHCL Seleqtions hotels are a fantastic option.
NETNET
In a country where pet-friendly accommodations are few and far between, IHCL Seleqtions is a breath of fresh air—a chain that accommodates and celebrates the bond between pet and owner. It covers many cities like Agra, Ajmer, Chikmagalur, Coonoor, Goa, Jaipur, Mumbai, New Delhi, Ooty, Pune and Varkala, and the list will only increase. These are for ‘Pawfect Pawcation’. There is an additional charge for the pet- but that is worth it.
ITC Hotels (the ‘Petcaytions’ initiative) and Marriott International also have a few pet-friendly hotels. All Vivanta hotels and the bungalows under the homestay brand Ama Stays & Trails are pet-friendly. These cater to a small high-end demand- but a bigger opportunity lies in the mid-range pet-friendly hotels.
Add-on: One thing that created dissonance was that the hotel did ask me to sign a liability statement covering any possible damage to property or otherwise- but did not insist on seeing the Pet Licence, Vaccination, Fit-to-travel Vet letter and Insurance papers. I know this would add to the pet parents’ workload- and the paper I signed most likely covered these areas. I know such small things can help in proper pet care and hotel property peace of mind. They may even ask it to be uploaded digitally or shown at a different time- but it should not be taken for granted.
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Q. How do you view the increasing trend of media organisations hiring non-journalists—like influencers and celebrities—as content creators? Is this broadening the scope of journalism, or diluting its integrity?
A. I don’t have appropriate database to support your conclusion about news organisations re recruiting influencers/ celebrities. There might be some staccato examples of such an induction for saliency but hardcore news/ feature content has to be generated on a sustained basis which is beyond any gimmicky steps.
I can imagine that any reasonably good/ renowned news media organisation, worth its ilk, would certainly leverage AI/ other tech software across its newsroom in different ways: For example: the complete automation of some news content, such as blogs on stocks and commodities (depending on the focus of the new organisation) as well as on weather and pollution levels.
Automation augments editorial capabilities for such edit tasks that helps quick translation, transcription, large document analysis etc.
Besides, content prioritisation processes can track what is trending on Google/ other social media and run an algorithm that looks at how much traction a news brand can get from different keywords that are trending. The outcome could guide editors on which stories are gaining traction with their relevant audience. The editors can also evaluate the impact of their stories vis-a-vis competition and the speed of breaking stories. All these are possible because of advancements of technology.
Technology, especially AI, can offer analysis to help newsrooms have an edge over competitors. One needn’t then over-rely on any gimmicky staff.
Despite the Conservatives’ defeat in the recent general election, the right-wing media in Britain appears to be thriving – judging by the eye-watering price for which the weekly right-wing magazine The Spectator has just been sold.
The Spectator was founded in 1828 and has published continuously since then – making it the world’s oldest surviving magazine. It has always been considered the “house journal” of the Conservative Party, with its editorship often used as a stepping stone to political prominence (most recently by Boris Johnson).
But that may be about to change. The magazine has just been sold to UK hedge-fund investor Sir Paul Marshall for £100 million. This is a staggering sum for a publication that, in 2023, turned a profit of just £2.6 million.
The purchase makes Marshall one of the most influential media magnates in the UK, potentially second only to Rupert Murdoch. So what does his purchase of the Spectator mean for the right-wing press? And indeed, for the Conservatives, to whom he has donated more than half a million pounds.
In 2017, after a successful career in the City of London, Marshall purchased the right-wing news and opinion website UnHerd.
But it was the role he played in the launch of Britain’s first politically opinionated news channel – GB News – that brought him to real prominence on the British media scene’s right flank.
The channel first started broadcasting in 2021 but was soon in financial trouble. Marshall, who owned 38% of the company, stepped in. By injecting a total of £40 million into the channel, he enabled it to keep going and expand its influence.
As I have found in my research into the media company, its relatively low viewing figures are not an accurate depiction of its impact. GB News reaches a vast audience through its website and social media presence (2.7 million viewers to its website per month, and 1.3 million YouTube subscribers).
The channel has courted controversy since launch, primarily by its use of Conservative and other right-wing politicians as presenters. It has often featured Tory MPs as presenters interviewing Tory ministers. It has been repeatedly investigated by Britain’s media regulator, Ofcom, and has been found in breach of its impartiality rules twelve times.
Marshall has also had his eyes on an even more important player in Britain’s right-wing media ecology. The Daily Telegraph and its sister paper the Sunday Telegraph have been regarded as the Conservatives’ flagship serious newspapers ever since the daily began publication in 1855.
The papers are up for open auction after a previous bid by Abu Dhabi-backed consortium RedBird IMI to take over both the Spectator and Telegraph collapsed. The purchase was largely funded by United Arab Emirates vice-president Sheikh Mansour bin Zayed bin Sultan al-Nahyan, who also owns Manchester City Football Club, and the government intervened to introduce legislation banning foreign governments from owning UK media.
Marshall’s rightward move
Marshall has given assurances about guaranteeing non-interference in the Spectator’s editorial and political line.
But Conservatives would be mistaken if they thought the expansion of Marshall’s media empire was unmitigated good news. His evolution from Liberal Democrat activist to GB News backer gives an indication as to where the Spectator could go under his ownership. In 2004, Marshall co-edited The Orange Book: Reclaiming Liberalism, which sought to turn his party from the centre-left of British politics towards the centre, or even centre-right.
As the Brexit referendum came into view, Marshall left the Lib Dems to campaign for, and fund, the Leave campaign. From that point on Marshall gave significantly to the Conservative party.
At the start of 2024, anti-racist organisation Hope Not Hate uncovered evidence that Marshall had “liked” Islamophobic and anti-migrant social media content. A spokesperson for Marshall said this engagement did not represent his views.
The direction of his media companies has followed this rightward shift. Under Marshall’s ownership, GB News has become virtually the mouthpiece for the right-wing, pro-Brexit Reform UK party.
Party leader Nigel Farage has an hour-long prime time slot Monday to Thursday, netting him, almost a million pounds a year. Farage says this figure is exaggerated, but by his own financial declarations he is the highest paid of all MPs.
Apart from the string of Reform politicians being given airtime, my recent research has revealed how GB News shifted during the recent election campaign from being pro-Tory to pro-Reform.
I monitored the content posted to the GB News website in the months ahead of the election. My analysis found that as the election drew nearer, the share of pro-Tory items declined from 25% to less than half of that.
But in the last week of June, following Farage’s announcement that he was running as a Reform candidate, the number of pro-Reform items consisted of 17% of its coverage (compared with just 7% over the previous three months). Anti-Conservative coverage was up to 10%, level-pegging with Labour.
What then, of the Spectator’s future trajectory? Perhaps one straw in the wind is that, despite Marshall’s assurances that the magazine’s editorial line would remain untouched, Andrew Neil, who chaired the magazine for 20 years and kept it as a Conservative-supporting publication, stepped down following Marshall’s purchase.
He tweeted: “I regarded it as my prime responsibility for 20 years to ensure [editorial independence] not just from outside pressures, commercial or political, but even from proprietors … I cannot tell if the new owners will have the same reverence for editorial independence.”
Neil’s replacement, Freddie Sayers, has been editing UnHerd, where the political line, while generally right-of-centre, has not been consistently pro-Conservative.
Hence, there is the possibility that, if Marshall is successful in his bid for the Daily and Sunday Telegraph, the right-wing bias of the UK’s print media will remain, but not necessarily to the benefit for the currently flailing Conservative Party.
Ivor Gaber is Professor of Journalism, University of Sussex. This article is republished from The Conversation under a Creative Commons license. Read the original article.