A contribution by Sahil Kandwal, Co-Founder of Squardtech

The development of artificial intelligence can certainly be considered as groundbreaking as the discovery of electricity. Just like electricity revolutionized the world, artificial intelligence will pave the way for new technologies and applications that will profoundly reshape economic processes, open new avenues for research, and ultimately transform every aspect of our daily lives. Almost no area of life will remain untouched by this technological shift.

But what has changed with the arrival of systems like ChatGPT? Machine learning itself is not new. Businesses have been using algorithms for years. Until recently, AI systems could read, sort, and write data, but they lacked real understanding of content. This has now changed with advanced AI systems like ChatGPT, which can comprehend natural language and produce dialogues and content that are nearly indistinguishable from human communication.

These programs are based on Large Language Models (LLMs). LLMs use machine learning methods, particularly deep learning with neural networks, to detect patterns and relationships in large datasets and derive rules from them. In the case of ChatGPT, the training data consisted of around one billion websites, news articles, Wikipedia entries, and books. This enables models like ChatGPT to understand natural language queries, process context, and generate meaningful responses.

Developing such individualized AI systems is currently unaffordable for most companies. Therefore, it is expected that a few large providers will offer customizable AI platforms that other companies can adapt to their needs.

Impact on Retail and Business Operations

The impact of AI is multifaceted. Here are a few examples:

• Customer interactions will become increasingly automated, not only in e-commerce but also through tablets or digital assistants in physical stores. Chatbots will handle and personalize sales processes.

• Real-time updates on inventory, order status, and delivery timelines will improve customer communication.

• Customer support processes like returns and exchanges will be streamlined through AI-driven systems.

• Retail marketing will evolve, with AI generating tailored campaigns, optimizing ad placements, and creating engaging content for social media.

• Internal knowledge management will benefit too. AI systems trained on company data can serve as intelligent digital assistants, helping employees find information quickly and accurately.

  A Brave New World?

  Are we entering a “Brave New World,” as described by Aldous Huxley in his dystopian novel from 1932? AI systems like ChatGPT are becoming an integral part of our daily lives. The real challenge will be how we integrate these systems into our social and ethical frameworks.

  Since AI and digital technologies operate globally, different countries and cultures will approach development and regulation in various ways. Ultimately, an AI is only as unbiased and capable as the data and values its developers have provided. This raises not just technological and economic questions, but also socio-political ones, marking AI as one of the biggest challenges of the 21st century.

  By Sahil Kandwal

  Co-Founder of Squardtech