AI July 2024 News Roundup: A Month of Innovation, Investment, and Increasing Scrutiny

July 2024 was a pivotal month for artificial intelligence, marked by a wave of new releases, significant investments, and intensifying debates over regulation and responsible use. From powerful open-source models to ambitious humanoid robotic projects, AI’s impact on society is undeniable. AI is here to stay, and its evolution is accelerating at an unprecedented pace.

Key Points

• OpenAI Launches SearchGPT: OpenAI introduced SearchGPT, a new search feature designed to provide timely answers using web sources.
• Meta Unveils Llama 3.1: Meta released Llama 3.1, a family of open-source AI models aimed at democratizing access to cutting-edge AI capabilities.
• Mistral New Release: Mistral launched Large 2, an open-source AI model rivaling leading models in performance.
• AWS App Studio Simplifies App Development: AWS launched App Studio, a tool leveraging generative AI to streamline enterprise application development.
• Tesla Sets Ambitious Goals for Humanoid Robots: Tesla announced plans to begin selling the Optimus humanoid robot in 2026.
• Nvidia Boosts Humanoid Robotics: Nvidia unveiled new tools for humanoid development and deployment, further advancing the field.
• AI Funding Frenzy Continues: The AI investment boom persists, with over $35.5 billion invested globally in AI startups in the first half of 2024.
• EU’s Landmark AI Act Takes Effect: The European Union’s groundbreaking Artificial Intelligence Act came into force, establishing comprehensive regulations for AI.

Search and Generative AI: New Players Emerge, OpenAI Expands

OpenAI presents SearchGPT – Google direct competition

The AI-powered search landscape heated up in July with OpenAI’s introduction of SearchGPT, a new product designed to challenge Google’s dominance in search engines – a market worth over 288 billion USD.

SearchGPT provides timely answers to questions using web sources, incorporating location data for more precise results. This release signals OpenAI’s ambition to expand beyond chatbots and into the broader search market. Currently, SearchGPT is only open for a handful of testers with a waiting list available.

Open Source Models: Llama 3.1 & Mistral 2

Meanwhile, the AI race intensified with Meta’s release of Llama 3.1, a family of open-source AI models that democratize access to cutting-edge AI capabilities. This lineup, including Llama 3.1 8B, 70B, and the flagship 405B model, empowers researchers and developers with tools for various tasks like coding, language translation, and document summarization.

Llama 3.1 405B, Meta’s largest open-source model, aims to compete with proprietary models like OpenAI’s GPT-4o and Anthropic’s Claude 3.5 Sonnet.

Not to be left behind, Paris-based AI startup Mistral released their upgraded version, also an open-source AI model: Large 2. They claim that it can rival leading models in performance while maintaining a smaller size. Large 2 boasts reduced hallucination tendencies, prioritizing accuracy and acknowledging when information is lacking.

Open-source vs Closed-source clash

These releases underscore the growing importance of open-source AI models, which foster innovation and collaboration within the AI community. They also highlight the intensifying competition in the artificial intelligence space, with companies vying to develop the most powerful and versatile models that are cheaper and easier to use.

Amazon introduce App Studio

Additionally, AWS introduced App Studio, a tool that makes app development easier by allowing technical professionals to create custom applications without extensive coding knowledge. App Studio leverages generative AI models to translate user descriptions into functional applications, simplifying the development process and making it accessible to a wider range of users. This move signifies AWS’s commitment to harnessing generative AI to simplify complex tasks and empower businesses to leverage AI capabilities for their specific needs.

AI Safety and Regulation are shaping up

As AI continues to advance, concerns about its safe and ethical use have come to the forefront. OpenAI addressed these concerns by pledging to grant the U.S. AI Safety Institute early access to its next major generative AI model for safety testing. This move aligns with OpenAI’s recent endorsement of three Senate bills aimed at shaping U.S. AI policy, including the Future of AI Innovation Act, which would formally authorize the AI Safety Institute as a federal body setting standards and guidelines for AI models.

OpenAI’s engagement with these initiatives, coupled with its active participation in industry groups and government advisory boards, indicates a strategic effort to influence AI policymaking at the federal level. This proactive approach reflects the company’s commitment to ensuring responsible AI development and deployment.

EU Ushers in New Era of AI Governance with Landmark AI Act

As of August 1st, 2024, the European Union’s groundbreaking Artificial Intelligence Act (AI Act) has come into effect, establishing the world’s first comprehensive regulatory framework for AI. The AI Act aims to foster trust in AI technologies while safeguarding fundamental rights, creating a harmonized and supportive environment for AI innovation and investment across the EU.

This risk-based regulation classifies AI systems into four categories:

• Minimal Risk: Most AI systems, like recommender systems and spam filters, fall into this category and face no obligations under the AI Act.
• Limited Risk: AI systems with specific transparency obligations, such as chatbots and deepfake generators, must clearly disclose their nature to users.
• High Risk: Systems identified as high-risk, including those used for recruitment or loan assessments, must adhere to strict requirements, including risk mitigation, data quality, and human oversight.
• Unacceptable Risk: AI systems deemed a clear threat to fundamental rights, like social scoring systems and certain manipulative AI applications, are outright banned.

The AI Act also introduces rules for general-purpose AI models, ensuring transparency and addressing potential systemic risks.

Enforcement of the AI Act will primarily fall on national competent authorities designated by Member States, with the Commission’s AI Office playing a key role in implementation and oversight. Companies failing to comply with the regulations face substantial fines.

While most provisions will come into effect in 2026, certain prohibitions and rules for general-purpose AI models apply sooner. To bridge the gap, the Commission has launched the AI Pact, encouraging voluntary adoption of key obligations ahead of legal deadlines.

This landmark legislation marks a significant step towards establishing clear guidelines for the responsible development and use of AI, setting a precedent for other regions to follow. As AI continues to advance, the EU’s AI Act will play a crucial role in shaping its trajectory, ensuring that it serves humanity’s best interests.

Investment and Innovation: AI Startups Secure Billions in Funding

The AI investment landscape remains vibrant, with over $35.5 billion invested globally in AI startups during the first half of 2024. Notably, several U.S.-based companies secured substantial funding rounds, demonstrating investor confidence in the sector’s growth potential:

• xAI: Elon Musk’s ambitious AI venture raised a staggering $6 billion, aiming to accelerate scientific discovery.
• Scale AI: The data-labeling platform secured $1 billion, emphasizing the importance of high-quality training data for AI models.
• CoreWeave: The GPU infrastructure provider raised $1.1 billion, highlighting the growing demand for specialized AI computing resources.
• Cyera: The AI-powered data security platform raised $300 million, reflecting the increasing need for AI-driven security solutions.
• Glean: The AI-driven enterprise search startup secured $203 million, underscoring the value of AI in improving data accessibility and analysis.
• Figure: The AI robotics startup raised an impressive $675 million, signaling the growing interest in humanoid robots and their potential applications.
• Lambda: The deep learning infrastructure company raised $320 million, catering to the growing demand for cloud-based AI development tools.
• Inflection AI: The developer of the conversational AI chatbot Pi secured $1.3 billion, showcasing the potential of AI in revolutionizing communication.

This wave of investments demonstrates the immense potential investors see in AI to revolutionize industries and create new opportunities. However, the question of return on investment (ROI) for AI technologies remains a pressing concern for businesses. While AI promises to transform various sectors, quantifying its impact on business performance and revenue remains a challenge. Many companies are investing in AI with the hope of staying competitive and improving user experiences, even if the immediate financial benefits are not yet clear.

The Rise of Humanoid Robots

Tesla CEO Elon Musk’s ambitious plans to begin selling the Optimus humanoid robot in 2026, with internal use starting next year, might have intensified the competition on development of humanoid robotics. This, coupled with Nvidia’s unveiling of new tools for humanoid development and deployment, signals a significant push towards creating general-purpose robots capable of performing a wide range of tasks. However, Tesla is not the only player in the game.

Neura Robotics’ 4NE-1 humanoid robot, showcased performing various activities like ironing and moving boxes, highlights the increasing sophistication of these systems. While challenges remain in achieving true general-purpose robots, the advancements in hardware and software, combined with the growing interest from major players like Tesla and Nvidia, indicate a promising future for humanoid robots.

The Road Ahead: Balancing Innovation with Responsibility

The rapid advancements in AI technology present both immense opportunities and significant challenges. As AI continues to evolve, it’s crucial to balance innovation with responsible development and deployment. OpenAI’s engagement with AI safety initiatives and regulatory bodies is a step in the right direction, but continued collaboration between industry leaders, policymakers, and researchers is essential to ensure that AI benefits society while mitigating potential risks.

The future of AI is bright, with endless possibilities for transforming industries and improving our lives. However, it’s crucial to navigate this evolving landscape with caution and foresight, ensuring that AI remains a tool for good and a catalyst for progress.