How the AI Industry Runs on Its Own Money

The article discusses the discrepancy between the potential of AI and its actual usage, particularly focusing on a report by Anthropic that highlights this gap. The author argues against the notion that this disparity is due to temporary frictions or limitations, suggesting instead that there might be deeper issues at play.

Key points from the article include:

1. Anthropic's Report: This report suggests that AI models have significant capabilities but are not being utilized as much as they could be. The gap between what AI can do and how it is currently used is described as a "red-blue" discrepancy.

2. Evidence of Underutilization: OpenAI’s January report indicates that even power users (those who heavily rely on AI) use its capabilities only seven times more than the median user. This suggests that there's a significant underutilization of AI technology among regular users, despite its potential benefits.

3. Potential Explanations for Underutilization:

   • Model Limitations: Current models might not be robust enough to handle all tasks effectively.
   • Legal Constraints: Regulations and legal concerns may limit the deployment of AI in certain areas.
   • Software Requirements: Specific software requirements or integration issues could hinder broader adoption.
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Read the full article at The Algorithmic Bridge

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