AI-powered Bookkeeping and Finance for Startups

AI-powered Bookkeeping and Finance for Startups

Blog Article

GPT-4 Impacts on Startups and the Labor Market

Melody Tong

Customer Success Manager

AI

Apr 3, 2023

Key Takeaways

We can see that the newly released GPT-4 language model signals an amazing step forward in the development of AI. It also has wide-ranging implications for startups and the labor market. Under GPT-4, we can now experience increased accuracy with the option to further customize as we please. Interesting to note that the new image input feature that has opened up some exciting new opportunities in various markets, including natural language processing, content creation, and analytics. But it is always important to consider the downsides. The advancement will inevitable cause displacement in some people’s jobs, however, the improvement will also bring creation of new jobs and opportunities as it progresses and evolve.

How does GPT-4 compare to its predecessors?

  • Reduced rate of factual/reasoning errors: Compared to GPT-3.5, GPT-4 has a 40% benchmark improvement in terms of accuracy.

  • Steerability: GPT-4 offers us greater control and customization options in shaping tour AI models. This enables us to be more customizable with our requests in shaping the correct models.

  • Image Input: GPT-4 can take image input in addition to text, providing analysis of image details, creating content based on images, and answering questions based on visual information.

How would GPT-4 affect the future of startups?

  • Natural Language Processing (NLP): The global NLP market size is expected to grow tremendously in the coming years, with a CAGR of 18% until 2029. Most of the market demand will be for AI-related assisting software, such as chatbots or processing bots.

  • Generative AI: There is significant investor interest in generative AI, with a survey indicating that 9 out of 10 investors have invested in something related to AI development.

  • Content Creation and Marketing: The market for content creation is also expected to grow, with a CAGR of 13.5%. GPT-4's image recognition feature opens up opportunities in content creation and marketing opportunities by allowing for more efficient and cost-effective creation of meaningful text based on provided images.

  • Analytics: The market demand for AI-incorporated analytics is expected to grow, with the market for predictive analytics having a CAGR of 21.7%. This presents opportunities for startups that can offer more accurate analysis using GPT-4.

  • Finance and Accounting: On one hand the increased efficiency and accuracy of the model will be able to automate and streamline majority of the junior level works which boosts productivity. But on the other hand they will also lower the skill gap between companies in their works which might potentially increase competition and lower the profits.

  • Cost Efficiency: The survey shows that many startups are incorporating GPT-4 into their daily tasks to reduce the expense of outsourcing them to third-party contractors.

GPT-4 Impacts on the Labor Market

  • Job displacement: According to a study by McKinsey, up to 800 million workers worldwide could be displaced by automation by 2030. While it is difficult to predict the precise impact of GPT-4 on the labor market, it is likely that certain jobs with set patterns and routines will be most affected. 

  • Productivity gains: While there is potential for job displacement, AI also offers significant productivity gains. One study found that AI could increase labor productivity by up to 40%.

  • New job creation: The development of GPT-4 is also likely to create new job opportunities, particularly in entry-level positions within startups that require a more interpersonal touch to their services.

After all, the advancement in AI shown by GPT-4 will indeed change the things around us and disrupt our works for a little bit. But it will also create even more exciting opportunities in different fields. It is important to understand how to take advantage of the advancements and make them into tools for us, instead of us for tools. Therefore, it is crucial to be aware of the pros and cons of the new technology, in this case GPT-4, and maximize its potential while maintaining our own work rhythm. Let’s all look forward to this exciting new development and adapt as we progress further into the future!

Alex Lee