Is GenAI overhyped?

Generative AI took the world by storm, but has it lived up to our expectations? And is it just a fad, or here to stay? Read on to find out.

Content Marketing Specialist

Monika Karlović

Content Marketing Specialist

In the last year, generative AI has taken the world by storm. Some people compare it to when Steve Jobs introduced us to the iPhone, a revolutionary technology that left people in awe and changed how we function as a society.   

But is GenAI genuinely going to change the way the world works? Or is this a fad we will forget about in a couple of years, like Segways, cryptocurrency, the Metaverse, or Google+?  

Let’s walk through what we have learned in the last year about GenAI with our Chief Business Officer, Ivan Ostojić, and see if GenAI has truly reached its peak or is just getting started.  

What’s with the GenAI hype, and is it just a fad?  

The initial hype around generative AI was enormous. It was the main topic of conversation for everyone, from students raving about ChatGPT’s ability to generate essay answers to major corporations rushing to release their generative AI technology – some succeeding and some flopping.   

At the same time, people were creating major buzz about the scary side of AI. Losing jobs to AI, deep fakes, and fraud attacks began to stir up fear. We questioned how powerful generative AI could be and if we were on the road to a full-on Matrix-style dystopia (if we aren’t already unknowingly living in one).  

But artificial intelligence is exactly that – artificial. It can’t think independently or grow consciousness that allows it to become as powerful as the hype made it sound.  

So, there is no doubt that the capabilities of GenAI were hyped up. But now that our excitement has started to fizzle, reality has kicked in, and regulations have been put into place on how and when to use it, is this something that will stick? Or are we ready to move on to the next best thing?  

I think GenAI is here to stay. I wouldn’t say it’s over-hyped, but I think we are just leaving this so-called hype-cycle around GenAI, and once we do, we can get a bit smarter and understand the best uses for this technology going forward.

Ivan Ostojić

Chief Business Officer at Infobip

The GenAI boom led to some impressive feats over the last year: 

  • AI-chatbots  
  • Content creation (art and written)  
  • Language translations  
  • Coding assistance  
  • Music creation  

And the list goes on. But one of the most important things we have learned about GenAI is that it is not a one-size-fits-all solution to every problem.    

Let’s take customer service chatbots as an example. If you are looking to book an appointment with your dentist over WhatsApp, would it be easier for you to click two buttons to choose a date and time from a simple chatbot or to have a back-and-forth texting conversation with a GenAI chatbot? Probably the former.   

GenAI is not the immediate answer to every problem and every use case. But we are getting better at understanding when and how to use it to get the best results and experiences with solutions across the board.  

GenAI is a very useful model that predicts the best outputs based on language inputs, and combining GenAI with other types of machine learning algorithms is what will keep it relevant.

Ivan Ostojić

Chief Business Officer at Infobip

How is GenAI going to impact our future?  

So, we’ve established that GenAI is here to stay, and with continuous development, we can start to predict how it will impact the future. Here are three categories in which we can see GenAI playing a significant role going forward:

1. Technology

Generative AI is drastically changing our approach to technology and how we code and program new tech. We are seeing the first glimpses of software 2.0, where applications can be created much faster through automated coding assistance. This AI will change how developers can create and scale their applications across different software platforms.   

GitHub’s copilot, for example, is a coding assistant that helps developers write code faster. In fact, in a survey conducted with 500 US-based developers, GitHub found that:  

92%

of developers surveyed are already using AI coding tools

70%

say AI coding tools will offer them an advantage at work and cite better code quality

AI-assisted coding is an excellent example of how GenAI is transforming technology and how it is essential to keep a human in the loop. GenAI is there to help improve developers’ efficiency and quality of work but can’t replace them.

Ivan Ostojić

Chief Business Officer at Infobip

2. Customer experience

Over the past two years, conversational experiences have been at the forefront of how businesses interact with customers. From conversational commercemarketing, and support, brands are starting to grasp the importance of guiding customers through their journey comfortably and conversationally. 

I think GenAI will empower us to create fully automated flows for conversational experiences. Customers can get welcome messages, product recommendations, pre or post-purchase support, and so on through one automated conversation.

Ivan Ostojić

Chief Business Officer at Infobip

3. Workforce optimization

Since GenAI can generate natural language, art, music, and other creative outlets that normally only humans could produce – the initial hype gave people reason to fear its impact on the workforce. But that didn’t necessarily happen. GenAI, as impressive as it is, is generally easy to identify. Much like in the GitHub copilot example, GenAI has become a tool that helps people complete work faster and more efficiently rather than replacing them entirely.

I think when it comes to workforce optimization, many companies will not necessarily look to cut costs but to do more with the same number of people. For example, GenAI can help support agents get quicker access to answers through a knowledge base, but we know that it cannot fully replace human agents, but rather improve their productivity.

Ivan Ostojić

Chief Business Officer at Infobip

How does co-creation play a role in ethical GenAI?  

The GenAI hype brought about conversations about ethical concerns with the new technology. How safe is it to use? Is it ethical to use in all situations? Should stricter regulations govern how and when we can use GenAI?   

Co-creation plays a huge part in the development of ethical GenAI uses. At Infobip, we have spent a lot of time innovating with GenAI, collaborating with partners and customers, and adhering to government regulations to help keep our AI solutions ethical.  

The first step in figuring out an ethical approach to implementing GenAI is to understand the goal of the business, for example:

  • Improve customer experience  
  • Cut costs
  • Achieve faster query resolution

Once we understand their goal, we can identify which use case can help them achieve that and consider the limitations of GenAI because there can be instances where an intent-based or rule-based chatbot can be a better option.

Ivan Ostojić

Chief Business Officer at Infobip

We can then co-create with partners like Microsoft and their Azure OpenAI Service to develop a GenAI solution for the use cases. But we must go further to ensure the solution is ethical. 

We must integrate quality controls in pre and post-processing development to prevent bias, AI hallucinations, and toxic answers. In some cases, we integrate other chatbot technologies like an intent-based chatbot because if we identify problematic responses from GenAI, the intent-based chatbot can provide a predefined answer, which minimizes the risk of unethical behavior.

Expanding reach with ethical AI

GenAI can help businesses expand their reach to populations that don’t normally have access to such conversational solutions. For example, in one case, farmers in South Africa who use a specific slang English dialect would typically have trouble interacting with a regular chatbot. But we can now feed their answers through a GenAI translator, generate a response, and translate the response back to their preferred dialect. This is a great ethical use of GenAI to improve user experience in every part of the world.

We are working on a solution for second and third-world countries, where most of the population is accustomed to using voice to communicate. The user could send a voice message to communicate with a GenAI bot, which uses text-to-speech technology to provide a voice response.

Ivan Ostojić

Chief Business Officer at Infobip

These are examples of how we can increase access to this technology by introducing additional steps and co-creation when we understand the user and what the business is trying to achieve ethically.  

Example of GenAI that lived up to the hype

Some fantastic projects have emerged since the launch of ChatGPT, which put generative AI on everyone’s radar – worldwide. Check out an impressive example of GenAI that offer conversational and ethical experiences, designed and launched thanks to co-creation and innovative thinkers.

LAQO is Croatia’s first fully digital insurance company, meaning conversational experiences are at the core of its success. By integrating a AI-powered customer support assistant, customers can quickly get their questions answered and submit insurance claims over WhatsApp. To date, the chatbot handles about 30% of all customer support inquiries. If it cannot help, the customer is easily transferred to a live agent to complete the conversation.  

Podravka, a European food and pharmaceutical provider, launched an AI-powered assistant on their culinary platform, Coolinarika. This engaging solution can interact and provide customers with healthy recipes and nutritional information to help encourage healthy eating. Podravka wanted to use AI to make a positive social impact on the growing problem of obesity in Croatia. After the chatbot launch, the platform saw a 40% increase in Millennial and Gen Z users and an 18% conversion rate to engaged users.   

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Feb 9th, 2024
8 min read
Content Marketing Specialist

Monika Karlović

Content Marketing Specialist