Rushing into genAI? Prepare for budget blowouts and broken promises

Still, Clifford noticed the user experience gap between the chatbots and search engines during a recent trip to Milan, she said. While there, she used an AI chatbot to look for a local place to buy a silk blouse. The chatbot pointed her toward a local seamstress who sold custom blouses through Instagram. According to Mr. Agbata, the head of Anambra State ICT Agency, SmartGov is a unique tool, which shows that Governor Soludo’s investment in tech is on course. Currently, the AI tool is hosted externally but the vision is to transfer this tool to Anambra’s Data Center, when it comes on board.

Companies also need to factor in infrastructure costs, cloud hosting services — from AWS, Microsoft, IBM and others — and the cost of GPUs and data tools. Vendors such as AWS and Microsoft offer cost-estimation frameworks, which outline scenarios from proofs of concept to full-scale deployments. During the study, the researchers investigated how company investment in AI affected worker adoption and how chatbots changed workplace processes. While corporate investment boosted AI tool adoption—saving time for 64 to 90 percent of users across studied occupations—the actual benefits were less substantial than expected. With the latest AI agents, the skills required to deploy are less technical than before. Using no-code interfaces, business leaders can simply describe the outcomes they wish to achieve through natural-language prompts.

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The National Artificial Intelligence Strategy, which was developed by Nigeria’s Ministry of Communications, Innovation, and Digital Economy, is the way to go. The policy paper’s focus on building local talent, funding AI research and supporting local startups is what is needed to put Nigeria on the map in terms of AI development. Transforming old, manual ways of working into modern digital workflows, so employees and customers get what they need, when they need it — fast, simple, easy. There hasn’t been a tech advancement that’s caused such a boom since the internet and, later, the iPhone.

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These systems might not be as flashy as gen AI, but classic artificial intelligence is a huge part of the technology we rely on every day. Co-founded by CEO Xuchen Yao and CTO Guoguo Chen, Seasalt.ai marks their second entrepreneurial collaboration. Instead of competing in dominant markets like the U.S. and China, the duo chose to focus on Southeast Asia – a region often overlooked by major tech giants. “I feel like we’re not always getting great answers, because people are unsure how it’s going to be used,” Kwiecien said.

Zentera’s CoIP (Cloud over IP) solution offers enterprise-grade networking and security for the emerging cloud ecosystem. Users reported average time savings of just 2.8 percent of work hours (about an hour per week). The Register points out that the finding contradicts a randomized controlled trial published in February that found generative AI increased worker productivity by 15 percent on average. Survey of 2023–2024 data finds that AI created more tasks for 8.4 percent of workers. After the model has been trained, companies can set system prompts, or guidelines, for how the model should behave to minimize sycophantic behavior. The company also prevents sycophantic behaviour before launch by changing how they collect feedback from the thousands of human data annotators used to train AI models.

• In late April, OpenAI updated its GPT-4o model to become “more intuitive and effective,” only to roll it back after it started being so excessively fawning that users complained.
• “I feel like we’re not always getting great answers, because people are unsure how it’s going to be used,” Kwiecien said.
• By reducing repetitive and mundane tasks, AI can totally transform the experience for employees and for customers, operating within the same workflows people use every day.
• The next year is going to see a move beyond generative AI chatbots to AI agents which can set goals and achieve results on their own.
• Cost estimates can sometimes exceeding the initial projections five- or 10-fold.

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Its researchers ask the company’s chatbot Claude to generate messages that include traits such as “having a backbone” or caring for human wellbeing. The researchers then showed these answers to a second model, which produces responses in line with these traits and ranks them. Experts warn that the agreeable nature of chatbots can lead them to offering answers that reinforce some of their human users’ poor decisions. Others suggest that people with mental illness are particularly vulnerable, following reports that some have died by suicide after interacting with chatbots. Analysts at IDC project that half of worldwide organizations will use AI agents for specific business tasks this year. AI agents can solve many common work challenges independently, with pre-built AI agents already on offer to work within different workflows, and other organizations designing their own agents to boost productivity.

• The software can then come up with teams of AI agents, ready to be managed by human users, under the governance and guardrails organizations put in place to ensure they perform the right tasks in the right way.
• Also, focusing on data from Denmark might overlook localized impacts already happening in other labor markets or specific fields like freelance creative work.
• Centralising vendor management within unified platforms, like Kong’s API gateway, can streamline data pipelines and reduce complexity.
• The world’s leading artificial intelligence companies are stepping up efforts to deal with a growing problem of chatbots telling people what they want to hear.
• Amanda Askell, who works on fine-tuning and AI alignment at Anthropic, said the company uses character training to make models less obsequious.

While more than 80% of enterprises will leverage or deploy genAI by 2026, most if not all will run into staggering cost overruns and failed expectations. Gartner projects $644 billion in genAI-related spending for 2025, with cost management posing a key challenge. To handle that requires smart financial planning; IDC expects 75% of organizations will integrate cost containment measures around genAI projects by 2027. The consumption and pricing models for the technology were “all over the place,” and promises of “robust” AI solutions fell short, she said. Privacy Professor provides information privacy, security and compliance services, tools and products to organizations in a wide range of industries.

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Foremost among its abilities, ChatGPT can craft human-like conversations or essays based on a few simple prompts. Dall-E and Midjourney create detailed artwork from a short description, while Adobe Firefly focuses on image editing and design. AI has a long history, going back to a conference at Dartmouth in 1956 that first discussed artificial intelligence as a thing. Milestones along the way include ELIZA, essentially the first chatbot, developed in 1964 by MIT computer scientist Joseph Weizenbaum, and — skipping ahead 40 years — when Google’s autocomplete feature first appeared in 2004. Injecting Phenom’s genAI into its HR hiring platform, however, netted big returns, Ritter said.