Welcome to this week’s AI Trailblazers Newsletter! Thank you for making us your go-to source for relevant AI business news. In this edition, we look at what the results of this week’s US election mean for the AI industry (hint: the shackles of regulation potentially coming off has many AI companies smiling). We also dive into the debate of open vs closed AI and how AI is now conducting it’s own scientific research….that’s right, the next Marie Curie may be a 4×6 box full of bits and bytes. Enjoy more below.

We are excited to share that the AI Trailblazers Growth Summit will be held on Dec 3rd in New York City. This exclusive summit will bring together marketing leaders and visionaries to explore the future of marketing, media, and innovation in an AI world. It marks our seventh gathering of the year—an incredible milestone for this dynamic series.

We are honored to welcome executive speakers and guests from globally renowned brands, including Amazon, Citibank, Estée Lauder, Google, Mastercard, NYSE, PepsiCo, Procter & Gamble (P&G), Publicis, Ralph Lauren, Samsung, Shiseido, Stagwell Global, TikTok, and Unilever, among others. We're also happy to share that Adweek is serving as our media partner for this summit.

Registration details - https://lu.ma/ecnlt6ix 

AI's Growth Spurt Hits a Wall

OpenAI, Google, and Anthropic—three leaders in artificial intelligence—are grappling with the challenges of advancing their AI models amid rising costs and diminishing returns. As they push to develop systems that surpass their current capabilities, they face obstacles including limited high-quality data sources and soaring operational expenses. These constraints are prompting a shift in Silicon Valley’s expectations, as some industry experts question the once widely accepted belief that simply scaling up models guarantees progress. In response, the companies are redirecting efforts towards more practical applications and tools, hoping to deliver functional value even if breakthroughs in AI development slow down.

• Diminishing Returns on AI Development: OpenAI, Google, and Anthropic are experiencing challenges in developing new AI models that surpass their predecessors. OpenAI's latest model, Orion, didn't achieve its anticipated performance, particularly in coding tasks. Similarly, Google's next Gemini update and Anthropic's Claude 3.5 Opus have also underperformed relative to expectations.

• Challenges with Data and Costs: A key hurdle for these companies is sourcing high-quality training data, as readily available sources are running out. This scarcity of data, especially for specific tasks like coding, limits model performance improvements. Additionally, the high costs of model training and operational expenses are straining companies, especially as modest improvements may not justify the investment.

• The Scaling Laws Debate: Recent setbacks are casting doubt on the scalability of AI, challenging the assumption that larger datasets and computing power will guarantee advancements. Some industry leaders, like Anthropic's CEO, argue that while scaling may still yield progress, it is not a guarantee. This has led some experts to call for new training methodologies to avoid reliance on outdated scaling assumptions.

• Shift Toward Practical Applications: In response to the stagnation, OpenAI and others are focusing on practical AI tools, such as "agents" that can perform tasks like booking flights or managing emails. This pivot aims to enhance user interaction and application utility rather than relying solely on larger model releases. Both Google and OpenAI are incorporating incremental improvements, such as reasoning and voice interactions, rather than pushing out massive new model upgrades.

AI Trailblazer Takeaways: Trump the sequel will grapple with many different issues this time and AI has to be near that top of his list. There are a number of issues at play and no one knows for sure how this will play out, but President Trump has made it clear that he supports AI development and proliferation. Sounds like it’s time to light the fuse on the AI rocket ship.

AI’s Sharp Eye Finds Cancer Missed by Radiologists

Artificial intelligence is proving transformative in the early detection of breast cancer, as demonstrated by a recent case at University Hospitals Sussex. After a routine mammogram appeared clear to radiologists, AI technology identified cancerous cells that were undetectable to the human eye, allowing patient Sheila Tooth to receive timely, minimal treatment. This advancement comes from a broader AI project aimed at uncovering missed cancers, offering new hope for improved screening accuracy and patient outcomes.

• AI Detects Hidden Cancer Missed by Radiologists: Sheila Tooth’s routine mammogram initially came back as normal, with two radiologists finding no signs of cancer. However, AI technology used at University Hospitals Sussex detected early breast cancer cells that were missed by human experts. This allowed her to receive minimal, early treatment, sparing her from more invasive interventions.

• Early Detection Through AI Provides Relief: Sheila, who had a history of non-invasive breast cancer, underwent a lumpectomy and did not require further treatment due to the early detection. At 68, she felt fortunate as this might have been her last routine mammogram. AI detection likely prevented the cancer from advancing, offering her a brighter prognosis.

• AI Project Identifies Cancers in ‘Normal’ Screenings: The AI system, developed by Kheiron Medical Technologies, reviewed over 12,000 mammograms marked as normal, suggesting nearly 10% for reevaluation. A panel recommended additional exams for 11 women, and five cases were ultimately found to be cancerous. This highlights AI’s potential to catch cancers undetected by standard methods.

• Promise for Future Cancer Screening with AI: Medical leaders are optimistic about integrating AI into regular screenings, believing it will improve detection accuracy and patient outcomes. University Hospitals Sussex plans to join a national trial to further evaluate AI in breast cancer screening. The results indicate a promising step towards enhancing early cancer detection and patient care.

AI Trailblazer Takeaways: The open versus closed debate has existed in software engineering since day one. Both sides make wonderful arguments, but monetization typically wins out in the end. Our capitalist society is predicated on our ability to make money on the things we create and for businesses focused on R&D that usually includes keeping their innovative secrets under lock and key. It will be interesting to see how this debate unfolds, but I’m betting that the almighty dollar wins out in the end. Whether that’s right or wrong depends on your own point of view.

Welcome to the Weird World of Oasis: Minecraft Meets AI Magic

Oasis, the first entirely AI-generated video game, offers players a surreal, ever-shifting world inspired by Minecraft. Created by the startup Decart and Etched, the game uses advanced AI to generate each frame based on players' movements, resulting in a bizarre yet fascinating experience. Though currently unpredictable, Oasis highlights the potential for AI to shape the future of game design.

• Oasis, a Minecraft-inspired game, is the first video game entirely generated by AI, offering players a surreal, ever-changing world. Developed by the Israeli startup Decart with Etched, the game creates each frame based on what the AI "dreams" should follow, making for a constantly morphing environment. The AI uses transformer-based technology, which generates each frame in response to the player’s actions.

• Players find Oasis both intriguing and bizarre, with the AI model generating unexpected artifacts. As users navigate, they encounter strange details like misshapen animals or stairs that lead nowhere, and the world shifts and warps based on their movements. This Inception-like quality creates an unstable landscape that can change entirely with a mere glance away.

• The game allows players to interact with the AI in unique ways, including uploading images to be transformed into landscapes. Some players have uploaded personal photos, which the AI then interprets and integrates into the game world as unusual block structures. This feature has fueled Oasis’s viral popularity, with users experimenting to “teleport” to new worlds and manipulate the AI’s responses.

• Despite its novelty, Oasis’s unpredictable AI design may limit its appeal as a conventional game. Experts like NYU’s Julian Togelius note that while generative AI can someday shape game elements, the technology still feels experimental. Yet, Oasis has sparked curiosity, with game designers exploring how such AI-driven mechanics might be refined to enhance future games.

AI Trailblazer Takeaways: Autonomous AI Scientists? They could advance research at a pace never before seen or could they produce mountains of irrelevant and erroneous research. Their potential to advance our understanding our our physical world is too good to pass up.

Magnificent 7 Links

OpenAI, Google and Anthropic Are Struggling to Build More Advanced AI (Bloomberg.com)

Other Links of the Week

Research: How Gen AI Is Already Impacting the Labor Market (Harvard Business Review)

Sam Altman claims AGI is coming in 2025 and machines will be able to 'think like humans’ (Tom’s Guide)

AI Companies Reportedly Struggling to Improve Latest Models (MacRumors)

OpenAI Nears Launch of AI Agent Tool to Automate Tasks for Users (Bloomberg.com)

Why AI could eat quantum computing’s lunch (MIT Technology Review)

A Roadmap to AI Utopia (Time)

Oil bosses have big hopes for the AI boom (The Economist)

The First Entirely AI-Generated Video Game Is Insanely Weird and Fun (WIRED)

AI Detected Her Early Breast Cancer After Annual Test Came Back as Normal(Good News Network)

Researchers say an AI-powered tool used in hospitals invents things no one ever said (AP News)

Partner with AI Trailblazers

Our community of business leaders is growing fast and we are planning more forums. To discuss partnership opportunities that connect our partners with AI decision makers including at our summits and this newsletter, email us. Our AI Trailblazers Growth Summit this December is already shaping up to be something extra special.

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AI Trailblazers is a vibrant platform dedicated to uniting corporate marketers, technologists, entrepreneurs, and venture capitalists at the forefront of artificial intelligence (AI). Our mission is to fuel growth, innovation, and career development among our members, who all want to be at the forefront of incorporating artificial intelligence into their businesses and their lives for strategic advantage. More information here.