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The Impact of Big and Small AI Innovations in Asia

The AI duel in Asia: Big vs. Small innovations shaping the future.

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AI duel in Asia

TL;DR:

  • Asia witnesses a battle between Big AI and Small AI, with tech giants and startups racing to shape the future of AI.
  • Big AI aims for Artificial General Intelligence, while Small AI focuses on task-specific applications.
  • Regulatory decisions and the approach to AI development in Asia will significantly impact the outcome of this contest.

The AI Duel: Big vs. Small Innovations

Asia is witnessing a pivotal battle between large-scale AI models and smaller, task-specific AI applications. This competition is not just about technology; it’s about shaping the future of AI and its role in business and society.

Big AI: The Quest for Artificial General Intelligence

Championed by tech behemoths, Big AI focuses on creating vast digital minds, aiming for Artificial General Intelligence (AGI) that could potentially outperform human intelligence. Key players include OpenAI, backed by Microsoft, which underscores the high-stakes and costly nature of this endeavour.

Small AI: Task-Specific and Accessible

On the other side of the ring, advocates for Small AI emphasise efficiency and specificity. These models, often open-source, cater to distinct tasks or sectors. Leading the charge are companies like Meta, promoting accessible and diverse AI applications.

Why This Matters for Asia’s Future

The trajectory of AI in Asia is not just a technical debate but a predictor of future societal and business landscapes. A dominant Big AI could reinforce the power of existing tech giants, while Small AI promises a more decentralised and innovative future.

The Tech Industry’s Twin Trajectories

Upscaling vs. Personalisation

Major companies are constantly expanding their technological footprint. Yet, there’s a parallel trend towards miniaturisation and bespoke solutions. This dichotomy echoes in the AI debate, reflecting the industry’s diverse directions.

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The Current State of AI Development

AI is a dynamic field, with foundational discoveries still unfolding. Innovations like Google’s “transformers” paper in 2017 highlight the rapid evolution and potential for sudden shifts in the AI landscape.

The Debate: Risks and Rewards

Small AI proponents worry about the monopolisation of AI by tech giants. Conversely, supporters of Big AI caution against the potential misuse of easily accessible small AI models.

The Role of Regulation

The future of AI in Asia may hinge significantly on regulatory decisions. A relaxed regulatory environment favours small AI’s growth, whereas stringent policies could tilt the scales towards Big AI, given their resource-heavy compliance capabilities.

Beyond the Horizon: Asia’s AI Future

As Asia stands at the forefront of AI innovation, the outcome of this big vs. small AI contest will profoundly influence the technological, business, and societal landscapes. The region’s approach to AI development and regulation will be pivotal in determining the direction of this influential technology.

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Where Can Generative AI Be Used to Drive Strategic Growth?

GenAI strategic growth is driving significant investments and diverse use cases across Asia’s business landscape.

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GenAI strategic growth

TL;DR

  • Investment in GenAI is increasing, with nearly half of surveyed organisations planning to spend over $1 million.
  • Challenges include resource shortages, knowledge gaps, and IT constraints.
  • GenAI use cases are expanding across traditional and non-traditional business functions.

Generative AI: The Engine Driving Strategic Growth in Asia

As Generative AI (GenAI) evolves from a technological novelty to a core business driver, organisations across Asia are ramping up investments to capitalise on its transformative potential. A recent survey by Dataiku and Databricks, summarised in the report “AI, Today: Insights From 400 Senior AI Professionals on Generative AI, ROI, Use Cases, and More”, sheds light on how leaders are leveraging GenAI to navigate challenges, unlock new use cases, and drive measurable returns. Read the full report here.

A Strategic Commitment

Investment in GenAI is skyrocketing, with nearly half of the surveyed organisations planning to spend over $1 million on GenAI initiatives in the next year. This financial commitment signals a decisive move beyond experimentation toward strategic integration. With 90% of respondents already allocating funds—either from dedicated budgets (33%) or integrated into broader IT and data science allocations (57%)—GenAI is becoming an indispensable part of enterprise strategy.

However, only 38% of organisations have a dedicated GenAI budget. This indicates that while enthusiasm for GenAI is high, it often competes with other priorities within broader operational budgets.

Realising ROI Amidst Persistent Barriers

While 65% of organisations with GenAI in production report positive ROI, others struggle to achieve or quantify value effectively. Key challenges include:

  • Resource Shortages: 44% lack internal or external resources to deploy advanced GenAI models.
  • Knowledge Gaps: 28% of employees lack understanding of how to effectively utilise GenAI.
  • IT Constraints: 22% face policy or infrastructure limitations, impeding GenAI adoption.

Cost remains a consistent concern, with unclear business cases ranking as a major barrier. For organisations aiming to justify investments, robust ROI measurement frameworks and employee upskilling programs are essential.

Expanding Use Cases: GenAI’s Versatility

One of GenAI’s defining strengths is its adaptability across business functions:

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  • Traditional Use Cases: Finance and operations lead in leveraging predictive analytics and automation.
  • Non-Traditional Departments: HR and legal are exploring GenAI for recruitment, compliance automation, and contract management.
  • Emerging Applications: Marketing teams use GenAI for personalised content creation, while R&D integrates it for simulation and prototyping.

The flexibility of GenAI is especially relevant in Asia, where diverse industries face unique challenges that GenAI can address.

AI Techniques Powering Transformation

The survey highlights key AI techniques that organisations are actively using:

  • Predictive Analytics (90%) and Forecasting (83%) dominate in deployment.
  • Large Language Models (LLMs) and Natural Language Processing (NLP) are widely adopted for understanding and generating human-like text.
  • Reinforcement Learning and Federated Machine Learning are gaining traction, enabling advanced decision-making and secure data collaboration.

AI Pioneers: Setting the Standard

The survey identifies “AI Pioneers”—organisations that excel in AI adoption by combining advanced frameworks, ROI measurement, and significant investments:

  • 54% of pioneers plan to spend over $1 million on GenAI, compared to 35% of their peers.
  • Pioneers report higher confidence in leadership understanding of AI risks and benefits, with 69% achieving positive ROI from GenAI use cases.

These organisations often operate under mature models, such as the “Hub & Spoke” or “Embedded” structures, which facilitate cross-department collaboration and innovation.

Shifting Sentiments Around AI

Fears surrounding AI have become less polarised:

  • Only 4% of respondents are “more worried than excited” about AI, down from 10% last year.
  • Confidence in leadership understanding of AI risks and benefits rose by 12% year-over-year, reaching 56%.

This shift suggests that organisations are adopting balanced and pragmatic approaches to integrating AI into their operations.

The Path Forward for Asia-Pacific

Asia-Pacific businesses, known for their tech-forward mindset, are uniquely positioned to harness GenAI. However, success will depend on addressing key challenges:

  1. Building Knowledge: Invest in employee training to bridge knowledge gaps and empower teams.
  2. Strengthening IT Infrastructure: Simplify systems to align with GenAI’s demands.
  3. Quantifying ROI: Implement frameworks to measure returns, ensuring GenAI investments deliver clear business value.

Conclusion

The Dataiku and Databricks report demonstrates that GenAI is not only reshaping industries but also redefining organisational priorities. For Asia-Pacific, the opportunity is clear: lead the charge by embedding GenAI into core strategies, leveraging it across diverse functions, and overcoming barriers with strategic investments in talent and technology.

By doing so, organisations can unlock measurable returns and maintain a competitive edge in the global AI landscape. For an in-depth dive into the findings, access the full report here.

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Interested in how Generative AI can drive strategic growth for your organisation? Share your thoughts and experiences with GenAI integration, challenges, and successes.

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The Race is On: AI Gets Real, Slow and Steady Wins the Race

AI adoption is progressing cautiously across various sectors, with companies prioritising careful deliberation over rapid transformation.

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AI adoption

TL/DR:

  • AI adoption is progressing cautiously across various sectors, with companies prioritising careful deliberation over rapid transformation.
  • Industries like healthcare and legal services are facing challenges in integrating AI due to inconsistencies and the need for human oversight.
  • The tech and visual design sectors are seeing significant AI integration, with predictions of AI handling up to 80% of coding tasks by next year.

In the wake of ChatGPT’s dramatic arrival two years ago, companies are excited about generative AI’s possibilities but heading into 2025 with careful deliberation rather than rushing to transform their operations. The Channel Tunnel, one of the world’s most strained travel checkpoints, presents a compelling example of AI’s current limitations and practical applications.

Each day, 400 of the world’s largest locomotives cross the tunnel linking France and Britain, with nearly 11 million rail passengers and 2 million cars carried through annually. For GetLink, the company managing the 800-meter-long trains, caution around AI implementation remains paramount.

“We’re in a highly regulated business. We’re not kidding around. These are very strict procedures.”
Denis Coutrot, GetLink’s Chief Data and AI officer
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Rather than controlling train operations, their AI primarily handles more mundane tasks like searching through rules and regulations. The legal sector, initially viewed as prime for AI disruption, tells a similar story.

“ChatGPT is obviously incredible. But it’s really quite hard to apply it in your day-to-day workflows in a way that is impactful,” noted James Sutton, founder and CEO of Avantia Law.
Denis Coutrot, GetLink’s Chief Data and AI officer
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While AI excels at basic tasks like searching legal databases and generating simple summaries, more complex work requires careful human oversight.

Sutton explained that AI’s inconsistency remains a challenge:

“One contract I can put in and the AI kicks it out perfectly. Another one will be 40 percent right. That lack of certainty means lawyers still have to verify everything.”

The tech industry presents a more aggressive adoption curve. Google reports that 25 percent of its coding is now handled by generative AI. JetBrains CEO Kirill Skrygan predicts that by next year, AI will handle about 75-80 percent of all coding tasks.

“Developers are using AI as assistants to generate code, and these numbers are growing every day,” said Skrygan at the Web Summit in Lisbon. “The next level is coding agents that can resolve entire tasks usually assigned to developers.”
Kirill Skrygan, CEO JetBrains
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He suggested that over time, these agents could replace virtually all of the world’s millions of developers. Visual design industries, particularly fashion, are seeing significant impact from AI image generators like DALL-E, Midjourney, and Stable Diffusion. These tools are already transforming work habits and shortening time-to-market for new collections.

In healthcare, despite a study showing AI’s potential —including one where ChatGPT outperformed human doctors in diagnosis from case histories — practitioners remain hesitant to fully embrace the technology.

“They didn’t listen to AI when AI told them things they didn’t agree with,” Dr. Adam Rodman, who carried out the study, told the New York Times.

Companies face a complex calculation between innovation, prudence and how much they are willing to spend.

“It will take some time for the market to sort out all of these costs and benefits, especially in an environment where companies are already feeling hesitation around technology investments.”
Seth Robinson, VP for industry research at CompTIA.
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Anant Bhardwaj, CEO of Instabase, believed that AI’s limitations were real but temporary.

“The real new innovation, like new physics or new ways of space exploration, those are still beyond the reach of AI… If people think that AI can solve every single human problem, the answer today is ‘No.’”
Anant Bhardwaj, CEO of Instabase
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While AI excels at processing existing patterns and data, Bhardwaj argued it lacks the human curiosity needed to explore truly new frontiers. But he predicted that within the next decade, most industries will have some form of AI-driven operations, with humans in the backseat, but complete AI autonomy remains distant. Still, the disruption caused by AI is coming hard and fast, and countries must be prepared.

“White collar process work is hugely impacted, that’s already happening. Call centers is already happening,” Professor Susan Athey of Stanford University told a statistics conference at the IMF.
Professor Susan Athey of Stanford University
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Athey, an economist of the tech industry, expressed worry about regions where a core profession such as call centers risked being swept away by AI.

“Those are ones I would really watch very carefully. Any country that specialises in call centers, I’m very concerned about that country,” she said.
Professor Susan Athey of Stanford University
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The Cautious Approach to AI Adoption

  • Regulated Industries: Sectors like transportation and legal services are adopting AI cautiously, focusing on mundane tasks while ensuring strict regulatory compliance.
  • Tech Industry: The tech sector is more aggressive in AI adoption, with predictions of AI handling up to 80% of coding tasks by next year.
  • Visual Design: AI image generators are transforming the fashion industry, shortening time-to-market for new collections.

AI in Healthcare: Potential and Challenges

  • Diagnostic Capabilities: AI has shown potential in healthcare, outperforming human doctors in some diagnostic tasks.
  • Hesitancy: Practitioners remain hesitant to fully embrace AI due to inconsistencies and the need for human oversight.
  • Future Prospects: While AI’s limitations are real, its impact on healthcare is expected to grow, albeit slowly.

The Economic Impact of AI

  • White Collar Jobs: AI is significantly impacting white collar process work, including call centers.
  • Economic Concerns: Countries specialising in call centers are at risk of being swept away by AI, raising economic concerns.
  • Preparedness: Nations must be prepared for the disruption caused by AI, ensuring economic stability and job security.

Looking Ahead: The Future of AI

  • Industry Integration: Within the next decade, most industries will have some form of AI-driven operations.
  • Human Oversight: Complete AI autonomy remains distant, with humans still needed for oversight and decision-making.
  • Innovation: AI’s limitations in exploring new frontiers highlight the need for human curiosity and innovation.

As we navigate the exciting yet complex landscape of AI, it is crucial for us to approach its adoption with caution and deliberation. While AI offers immense potential, it also presents challenges that require careful consideration. Our cautious approach ensures that we maintain regulatory compliance, address inconsistencies, and prioritise human oversight. This balanced strategy will enable us to harness AI’s benefits while mitigating risks, paving the way for a sustainable and innovative future.

Join the Conversation:

How is your industry adapting to the rise of AI and AGI? We’d love to hear your experiences and thoughts on the future of these technologies. Don’t forget to subscribe for updates on AI and AGI developments and share your insights in the comments below.

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Amazon’s Nova Set to Revolutionise AI in Asia?

Amazon’s Nova AI models are set to revolutionise the AI landscape in Asia with their multimodal generative capabilities.

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Nova AI models

TL;DR:

  • Amazon Web Services (AWS) has launched Nova, a family of multimodal generative AI models, including text, image, and video generation capabilities.
  • Nova models are optimised for speed, cost, and accuracy, with context windows supporting up to 2 million tokens by early 2025.
  • AWS is planning to release speech-to-speech and any-to-any models in 2025, expanding Nova’s capabilities.

Amazon Web Services (AWS) has today made a groundbreaking announcement that may just revolutionise the industry

At its re:Invent conference, AWS unveiled Nova, a new family of multimodal generative AI models that promise to push the boundaries of what is possible with AI. This article delves into the capabilities of Nova, its potential impact on the AI landscape in Asia, and what the future holds for this innovative technology.

The Nova Family: A Comprehensive Suite of AI Models

The Nova family comprises four text-generating models—Micro, Lite, Pro, and Premier—each designed to cater to different needs and capabilities. Additionally, Nova Canvas and Nova Reel are dedicated to image and video generation, respectively.

Text-Generating Models: Micro, Lite, Pro, and Premier

  • Micro: Optimised for speed, Micro can process and generate text with the lowest latency, making it ideal for quick responses.
  • Lite: Capable of handling image, video, and text inputs, Lite offers a balanced mix of speed and versatility.
  • Pro: Provides a balanced combination of accuracy, speed, and cost, suitable for a range of tasks.
  • Premier: The most capable model, designed for complex workloads and creating tuned custom models.
“We’ve continued to work on our own frontier models,” Jassy said, “and those frontier models have made a tremendous amount of progress over the last four to five months. And we figured, if we were finding value out of them, you would probably find value out of them.”
Andy Jassy, CEO, Amazon
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Image and Video Generation: Canvas and Reel

  • Canvas: Allows users to generate and edit images using prompts, with controls for colour schemes and layouts.
  • Reel: Creates videos up to six seconds in length from prompts or reference images, with adjustable camera motion for pans, rotations, and zoom.
“[We’re trying] to limit the generation of harmful content,” he said.
Andy Jassy, CEO, Amazon
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Capabilities and Safeguards

Nova models are optimised for 15 languages, with a primary focus on English. They offer varying context windows, with Micro supporting up to 100,000 words and Lite and Pro supporting around 225,000 words. By early 2025, certain Nova models will expand to support over 2 million tokens, enhancing their processing capabilities.

AWS has implemented safeguards to ensure responsible use, including watermarking and content moderation. These measures aim to combat misinformation and harmful content generation.

Future Developments

AWS is already looking ahead, with plans to release a speech-to-speech model in Q1 2025 and an any-to-any model by mid-2025. These models will further expand Nova’s capabilities, enabling it to interpret verbal and nonverbal cues and deliver natural, human-like voices.

“You’ll be able to input text, speech, images, or video and output text, speech, images, or video,” Jassy said of the any-to-any model. “This is the future of how frontier models are going to be built and consumed.”
Andy Jassy, CEO, Amazon
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Wrapping Up: The Future of AI in Asia

The launch of Nova marks a significant milestone in the AI landscape, particularly in Asia. With its multimodal capabilities and focus on responsible use, Nova is poised to revolutionise industries ranging from content creation to data analysis. As AWS continues to innovate, the future of AI in Asia looks brighter than ever.

Join the Conversation

What excites you the most about Amazon’s Nova models? How do you envision these technologies shaping the future of AI in Asia? Share your thoughts and experiences with AI technologies in the comments below. Don’t forget to subscribe for updates on AI and AGI developments here. We’d love to hear your insights and continue the conversation!

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