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| Hey Insiders, Welcome to Inside AI! Today's top story is McKinsey's new report, which finds gen AI could add $4.4T a year to the global economy while having the biggest impact on higher-paid jobs and knowledge workers. Scroll down for some "Quick Hits" and our "Question of the Week," and please let us know of any topics you'd like to see covered in future issues. Happy weekend! Beth
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| 1 | | The news: A new report by McKinsey Global Institute suggests that generative AI could add up to $4.4T annually to the global economy, representing around 4.4% of the total economic output. By comparison, the U.K.'s entire GDP in 2021 was $3.1T. The study predicts that generative AI, including chatbots like ChatGPT, could automate 60% to 70% of workers' time, leading to the automation of half of all work between 2030 and 2060. What the numbers say: McKinsey estimates that generative AI could add $2.6T to $4.4T in value across multiple industries. Greater adoption of the technology could boost productivity by 0.1% to 0.6% over the next two decades. Banking, high tech, and life sciences were among the industries that could see the biggest impacts from gen AI as a percentage of their overall revenues. Why it matters: Generative AI's impact on the labor force, especially among high-wage knowledge workers, challenges prior notions of automation. Unlike past technologies that affected lower-wage jobs, generative AI targets cognitive tasks, making higher-wage roles more vulnerable, according to McKinsey. Developed economies will experience faster automation, primarily impacting white-collar work. As the report predicts a reorganization of labor structures, McKinsey stresses the need to support workers in acquiring new skills and transitioning to different jobs. 
McKinsey analyzed 850 occupations and 2,100 work activities across 47 countries. |     | |
| 2 | | Chinese President Xi Jinping and Bill Gates discussed the global rise of AI, with Xi expressing his support for U.S. companies bringing their AI technology to China, according to Reuters sources. While the details of today's meeting in Beijing were not disclosed publicly, Xi also discussed Microsoft's business development in China, one of the sources said. More: - Despite stepping down from Microsoft's board of directors in 2020, Gates continues to unofficially represent the company, a major investor and partner of OpenAI.
- Xi has previously stressed the importance of using AI to boost China's economic development while also highlighting its risks.
- In April, China's internet regulator unveiled a draft law that would require new generative AI products to undergo a security review before they're launched.
- AI-created content would also be required to "reflect core socialist values" and "not contain content on subversion of state power," the proposed rules state.
Zoom out: - The meeting comes as AI remains a top issue in U.S.-China relations.
- In the past year, the U.S. has enacted export controls in an attempt to limit China's AI development.
- Today, the WSJ reported that the Biden administration is working on an executive order to restrict U.S. investment in certain technology companies in China, with the goal of staving off development of advanced technology that could enhance Beijing's military.
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| 3 | | The U.K. competition regulator has approved Amazon's $1.7B acquisition of iRobot, the maker of Roomba vacuum cleaners, clearing one regulatory hurdle as others remain in the U.S. and Europe. iRobot was founded in 1990 by members of the MIT Artificial Intelligence Laboratory. More: - The U.K. Competition and Markets Authority concluded that the deal would not harm competition and chose not to escalate its investigation.
- In its decision, the watchdog determined that robot vacuum cleaners and the data they gather aren't a crucial gateway in the emerging smart home devices market.
- The agency also found no evidence of Amazon favoring iRobot's products over others on its online platform.
- Pending approval from other jurisdictions, the acquisition would become Amazon's fourth largest, trailing Whole Foods, Metro-Goldwyn-Mayer (MGM), and One Medical.
What's next: - EU antitrust regulators are expected to decide on the iRobot deal by July 6, while the U.S. Federal Trade Commission (FTC) is investigating the iRobot acquisition and may file an antitrust lawsuit against Amazon.
About iRobot: - The firm began designing robotic vacuums in 2002 and has sold over 30 million AI-assisted Roomba vacuums, which are compatible with Amazon's Alexa virtual assistant technology.
- The company has incorporated sensors and advanced AI mapping algorithms in its robots to map and navigate through homes.
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| 4 | | Meta unveiled Voicebox, an AI model that generates synthetic voices from text prompts. The model was trained on a diverse dataset of more than 50,000 hours of unfiltered speech from audiobooks, including in different languages. More: - The system can generate conversational-like speech audio clips and performs almost as well as models trained on real speech, claiming only a 1% error rate degradation.
- Voicebox can also edit audio clips, removing unwanted noise and replacing misspoken words.
- It relies on a new training method called Flow Matching, which outperforms existing systems in terms of intelligibility and audio similarity.
- Meta has not released the Voicebox app or its source code to the public, possibly due to concerns about potential misuse.
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| 5 | | Tech giants OpenAI, Google, and others are in talks with media outlets to forge agreements regarding the use of news content for training AI, the Financial Times reports. FT, News Corp, Axel Springer, The New York Times, and The Guardian are among the publishers involved in the talks, sources said. More: - The discussions reportedly revolve around copyright concerns related to AI products such as chatbots and image generators.
- The deals could involve the tech giants paying subscription fees to access the media organizations' content.
- Pricing models for the use of news content as training data for AI models are reportedly being explored, with one suggested figure of $5M to $20M per year.
- Google has taken the lead in negotiations with U.K. news outlets, while OpenAI CEO Sam Altman has engaged with News Corp and The New York Times.
Zoom out: - According to FT, the media groups are driven by concerns about AI's impacts on the industry and the desire to protect their own content from unauthorized use.
- Media executives want to avoid the mistakes of offering free content during the early internet era, allowing Big Tech companies like Google and Facebook to leverage that content for online advertising.
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| 6 | | Weekly roundup — Other top AI stories you might have missed this week: - European lawmakers approved the world's first comprehensive regulations for AI, known as the AI Act. Negotiations between EU representatives will finalize the law. After passage, a two-year grace period precedes enforcement, with potential fines for violations.
- Adobe announced it is opening up access to its Firefly AI image generator to large business customers. The company has also offered to pay any legal fees if users are sued by creators for copyright infringement.
- Alphabet, the parent company of Google, advised its employees to be cautious when sharing confidential information with AI chatbots, including its own Bard. Alphabet has specifically expressed concerns about the risk of data leakage and the possibility that human reviewers may have access to chat logs.
- Meta released MusicGen, an open-source AI music generator that's described as "ChatGPT for audio." Trained on 20,000 hours of licensed music and more, MusicGen can create new songs from text or melody prompts.
- AMD announced the MI300x, its advanced GPU designed for AI tasks, positioning it as a flagship competitor to Nvidia's offerings in the market. With up to 192 gigabytes of memory, the MI300x excels in supporting AI applications, particularly large language models (LLMs).
- Paul McCartney revealed that producers used artificial intelligence to create what he refers to as the final Beatles song. McCartney confirmed in an interview with BBC Radio 4 that the song would be released later this year.
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- Doctors are using AI chatbots like ChatGPT to communicate more clearly with patients, including delivering bad medical news in a more empathetic way, the NY Times reports.
- Elon Musk discussed AI's risks and opportunities during a meeting with Italian Prime Minister Giorgia Meloni on Thursday.
- Chinese publication Jitwei reported that TikTok owner ByteDance has ordered approximately $1B worth of Nvidia GPUs in 2023, including around 100,000 units of Nvidia's A100 and H800 cards.
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 | AI and technology writer | | Beth is a writer and editor at Inside.com covering artificial intelligence and daily technology news. She has written the Inside AI newsletter since 2019. You can reach her at Beth.Duckett@inside.com. | | This newsletter was edited by Aaron Crutchfield | |
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