AI News: Google Hits AI Roadblock on Sidelines of Nvidia's Stellar Earnings

Highlights

After receiving criticism for the way its Gemini artificial intelligence model handled images based on race, Alphabet Inc.'s Google said that it would stop creating images of people.
The current setback to Google's operations comes at a time when the firm is heavily advancing its AI products.
AI is going to be a big source of revenue for IT businesses in the future.

Google has decided to pause image generation by its AI-backed Gemini, as the tool’s racial inclusivity comes into question. According to a report by Bloomberg, the tech giant has been accused of not being able to furnish racially appropriate images with its Gemini bot. The step will likely result in a hit for Google as its peers also move ahead in the AI race.

Google Faces Criticism for AI-generated Images

According to a report by Bloomberg, after receiving criticism for the way its Gemini artificial intelligence model handled images based on race, Alphabet Inc.’s Google said that it would stop creating images of people. Google has reportedly stated that they are already working to address recent issues with Gemini’s image generation feature. This was followed by the company’s decision to pause the creation of human images and release an enhanced version shortly.

Google’s move places it behind its rivals like Microsoft and OpenAI. The rivals have significant AI products that raised concerns about potentially endangering Google’s main internet search business.

Google’s Enhances Gemini Features to Stay Ahead in AI Revenue Race

The current setback to Google’s operations comes at a time when the firm is heavily advancing its AI products. Previously, Google unveiled a new version of its AI-enabled Gemini for Workspace. The new addition to workplace productivity comes with a suite of products, which already includes Gmail, Docs, Meet, Sheets, and Slides.

Most tech companies are currently trying to mint good revenue from artificial intelligence. Almost all publicly listed technology firms have some or the other exposure to AI products. However, the current profit and revenue generation from these products remains significantly low. With exponential growth expected in AI markets, tech giants are trying hard to jump on the AI bandwagon to generate good sources of revenue.

A good example of AI’s revenue impact is Nvidia’s current results. Nvidia posted adjusted profits per share (EPS) of $5.16 on $22.1 billion in revenue for the quarter. Analysts had projected $20.4 billion in revenue and $4.60 in earnings per share. Compared to the same period last quarter, when Nvidia recorded EPS of $0.88 on $6.1 billion, that represents a significant jump. Nvidia’s accomplishment was further highlighted by the company’s $27 billion in revenue for the entire 2022 fiscal year.

AI Growth to Help Country’s Excel their GDPs

AI is going to be a big source of revenue for IT businesses in the future. With new subscription models and product lists always being released, tech companies will base a huge segment of their operations on artificial intelligence in the future. In addition, it is projected that between 2023 and 2030, the global artificial intelligence market will expand at a compound annual growth rate (CAGR) of 37.3%. China is expected to benefit from AI the most, according to Forbes. The GDP of the country will have grown by 26% by 2030, with North America seeing a boost of 14.5%. Together, these advantages will total $10.7 trillion, or over 70% of the global economic impact.

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