Microsoft’s AI PCs: More hype than substance

Plus: AI adoption in finance stalls amid job and regulatory fears

July 01, 2024

TOP 3 STORIES

Happy Monday! Here are today’s top 3 headlines:

💻 Microsoft’s AI PCs: More hype than substance

💸 Financial services hesitate on AI over job and regulatory fears

🌿 Mary Meeker advocates AI-higher education partnership to keep U.S. ahead

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Microsoft’s AI PCs: More hype than substance

Microsoft's latest Copilot+ PCs offer solid hardware, but the AI features are mostly niche additions rather than groundbreaking advancements.

AI hype vs. reality: The AI revolution promises to give Microsoft a significant edge, but currently, the Copilot+ PCs don't fully deliver on this potential.

Hands-on experience: Over the past week, I tested a Qualcomm-powered Surface Laptop, focusing on its AI capabilities.

Removed feature: Microsoft's flagship AI feature, Recall, which was supposed to let users access past information via frequent screenshots, was pulled for further testing due to security concerns.

Current AI features:

  • Live Captions: Provides real-time translation for any audio or video. It worked well with a German Lego video, despite my limited German skills.

  • Windows Studio Effects: Enhances video calls by centering subjects, maintaining eye contact, and even turning users into cartoons.

  • Cocreator in Paint: Allows users to combine text prompts with sketches, though its usefulness is limited by the quality of the user's drawings.

  • Image Editing: Features that restyle existing photos or create images from text were more practical for me.

The bigger picture:

On-device AI potential: Live Captions exemplify effective use of generative AI, combining it with the performance benefits of on-device processing. However, there's much more Microsoft could achieve.

Competitor moves: Apple is also advancing its AI capabilities with Apple Intelligence, aiming for devices that can anticipate and respond to various needs.

Qualcomm chip shift:

Performance: The major change in the new Surface Laptop is its Qualcomm chip, which aims to rival Apple's MacBook Air. Early impressions suggest it is capable for basic tasks, a significant improvement over previous Qualcomm-powered Windows PCs.

Future developments: More devices from brands like Acer, Asus, Dell, HP, Lenovo, and Samsung are on the horizon, along with Intel and AMD's upcoming chips for Copilot+ PCs.

Microsoft has laid the groundwork for an AI-integrated future with its new PCs, but the current offerings don't fully capitalize on this potential. The real test will be how these devices evolve to truly harness AI's capabilities.

AI adoption in finance stalls amid job and regulatory fears

Industry leaders hesitate despite AI’s potential for huge gains…

Financial services are slow to embrace artificial intelligence, held back by fears of job losses, regulatory challenges, and institutional inertia, even though AI promises significant productivity boosts and cost savings.

Slow implementation: Only 6% of retail banks are ready to scale AI, despite predictions it could add $340 billion annually to the banking sector.

Job security concerns: AI’s ability to automate tasks is causing resistance, with many fearing job cuts. Nasir Zubairi from Luxembourg House of Financial Technology highlighted banks rejecting AI to protect existing roles.

Regulatory hurdles: Compliance issues complicate AI adoption. Large language models, which drive many AI tools, can produce inaccurate results and pose data security risks. Regulatory bodies urge a balanced approach to AI integration.

Customer service revolution: AI is transforming customer service, handling diverse queries and automating tasks. Tom Blomfield of Monzo predicts most customer service jobs will be replaced by AI within five years. NatWest’s AI service, Cora, managed over 11 million chats last year, largely without human help.

Mixed reactions: Some executives, like NatWest’s Wincie Wong, call for careful AI deployment, while others stress the need for rapid adoption to stay competitive. Carina Kozole of N26 argues that embracing AI is essential for the industry’s future.

The financial sector is at a critical juncture, balancing AI’s promise of efficiency with concerns over job security and regulation. While some banks lead in AI adoption, others must navigate these challenges to integrate AI effectively and stay competitive.

Mary Meeker calls for AI-higher education partnership to propel U.S. forward

Mary Meeker, famed for her "Internet Trends" reports, has released a new analysis emphasizing the crucial role of higher education in maintaining U.S. leadership in AI.

Why it matters: Meeker's reports have been essential in Silicon Valley. Her latest, a concise 16 pages, highlights the importance of collaboration between tech and higher education to drive economic growth and innovation.

  • U.S. AI leadership: Meeker argues the U.S. leads in AI, surpassing China, and stresses the need to maintain this edge.

  • Collaborative approach: She calls for tech companies and universities to work together, rather than viewing each other as obstacles.

Recommendations:

  • For tech companies:

    • Provide resources: Supply GPUs and other tools to research universities.

    • Clarify work futures: Communicate the evolving landscape of work influenced by AI.

  • For universities:

    • Adopt new roles: Teachers should act more like coaches, and students should be seen as customers.

    • Embrace change: Adapt to rapid tech advancements.

Meeker's perspective: Meeker highlights the historical role of institutions like Stanford and MIT in tech innovation, now increasingly funded by the industry. She views AI as a more significant revolution than previous technological advancements.

Mary Meeker emphasizes the urgency for collaboration between tech and higher education to ensure the U.S. remains at the forefront of AI innovation, driving sustained economic growth and global leadership.