Opens in a new tab
News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Generative AI Hits the Peak of Inflated Expectations: Gartner's 2023 Hype Cycle

Generative AI has been placed on the ‘Peak of Inflated Expectations’ in the 2023 Gartner Hype Cycle for emerging technologies due to the sheer number of products claiming to have it baked in. Generative AI has been identified by Gartner as a subset of AI that will bring “transformational benefit” in the next two to five years.   In addition to emergent AI, the Gartner release named other emerging tech trends: developer experience, pervasive cloud and human-centric security and privacy.

And I wanted to dig into a legal breakdown of The Federal Trade Commission’s (FTC) Civil Investigative Demand (CID) to OpenAI, the developer of ChatGPT, to investigate whether the company has engaged in unfair or deceptive privacy or data security practices. The CID contains 49 inquiries related to the company’s business practices and requests 17 classes of documents. The current Commission asserts that the FTC’s statutory authority under laws — including Section 5 of the FTC Act, the Fair Credit Reporting Act, and the Equal Credit Opportunity Act — grant it the ability to regulate the conduct of AI developers whose practices violate these laws.

The other big framework this week was the Associated Press, who published guidelines for the use of generative AI in its newsroom.  The publication does not view AI as a replacement for journalists, but rather a tool to be used with caution. Any result from a generative AI platform should be treated as unvetted source material and subject to AP’s existing sourcing standards. The guidelines also prohibit the use of AI to alter photos, videos, or audio, and require staff to verify the veracity of any AI-generated content they use.  The guidelines prohibit the use of generative AI to create publishable content, including images, and encourage caution to prevent the spread of misinformation. The AP’s partnership with OpenAI has led to concerns that other outlets may view the AP’s guidelines as a license to use AI more excessively or underhandedly.

Why do we care?

I think we’re right at the top of the rollercoaster, and frankly, have probably started down the slope into the trough of disillusionment.   That said, it’s a very fast ride.    I hope you like rollercoasters.

The FTC’s willingness to leverage existing laws should not be dismissed here.  That’s your legal framework to work with your customers around when considering AI, coupled with the Equal Employment laws I covered this week.     Now, layer on the AP’s guidelines.     I found this entirely complementary to the CoPilot approach – AI generated material is not source material.   

I use AI myself in summarization and never as a source.  That simplification is, again, useful for your customers.    Use those!  Your value as a provider is in the implementation, and let someone else do the framework creation.  

This content is made possible by community-minded viewers like you

Join the Small Biz Thoughts Community to support independent journalism and get the raw Business of Tech interviews, Channel Intelligence briefs, monthly member calls and more. Member support is one way we sustain the costs of investigative work — from court filings to video editing — while keeping the core reporting open to all.

Thank you

Join the Small Biz Thoughts Community

Choose your upgrade:

Get the full benefits of Business of Tech Plus

Insider Access

$12/month

Perfect for MSPs and ITSPs that want full interviews, early access, and ad-free listening

  • Programmatic Ad-free private podcast feedSame show, little interruptions
  • Channel Chatter previews1–2 topics with light insights
  • Early access to interview episodesHear it days before public release
  • Monthly Insider BriefTighter analysis you can share internally
  • Extra audio segmentsCut interviews, behind-the-scenes commentary, quick competitive notes
  • Become an Insider for $12/month

    Leadership Access

    $149/month

    Perfect for MSPs and Vendors that run a team and need the extended tactics, executive summaries, and weekly alignment brief

  • All Insider Access benefits plus . . .
  • Invite your teamIncludes access for 5 team members with option to add more
  • Vendor Strategy BriefsThe entire library, plus new analysis every month
  • Channel ChatterAll topics, full insights, complete vendor discussion + sentiment list
  • Quarterly State of the Channel Briefing
  • Monthly AMA submission priorityAsk Dave direct questions, and skip the line
  • Get the Leadership Edge for $149/month

    Vendor Partner

    $500/month

    Perfect for channel companies or vendors looking to deepen their engagement with the show.

  • All Leadership Access benefits plus . . .
  • Get highlighted as a show sponsor You'll get placement in the show notes, throughout the website, and on our dedicated sponsors page.
  • Enjoy regular shout outs You'll be featured in a rotating format during the show
  • Become a show sponsor for $500/month

    Search all stories