Current Challenges Involved In Adopting Generative AI Technology

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In an increasingly fast-evolving technological landscape, companies continue to search for ways to innovate and stay ahead of the competition. Generative AI stands out as an exciting option available now to businesses that helps automate creative tasks that were once only achievable with human assistance. Companies have rapidly taken up this technology due to its numerous advantages, such as increased productivity and efficiency while simultaneously decreasing costs.

However, Generative AI implementation presents many unique challenges to organizations and their applications. Businesses face hurdles regarding data quality issues, employee training requirements, ethical considerations, and security precautions when employing this technology.

In this article, we will investigate Generative AI and discuss its challenges for companies trying to implement Generative AI effectively.

What is Generative AI?

Generative AI refers to an ensemble of algorithms capable of creating realistic-appearing text, images, or audio from training data. For optimal results, foundation models should be trained on large quantities of unlabeled data in an unsupervised fashion in order to detect patterns that exist across numerous tasks.

GPT-3.5, a foundation model trained with large volumes of text, can be tailored for answering queries, text summarization, or sentiment analysis. DALL-E is another multimodal text-to-image foundation model that can help create images or expand original ones beyond their initial dimensions - or create variants of existing paintings!

What can Generative AI Do?

Generative AI models hold great promise to expedite AI adoption, even for organizations without deep AI or data science expertise. While customization still requires knowledge of AI software solutions and data sciences, for a specific task.

Generative AI's capabilities can be divided into three distinct areas.

  • Generating Content and Ideas: Generating unique outputs across many modalities, such as an advertisement video or even creating proteins with antimicrobial properties, is its hallmark capability.

  • Enhancing Efficiency: By speeding up manual or repetitive tasks such as sending out emails, coding, or summarizing large documents more quickly, efficiency gains are made.

  • Customizing Experiences: Tailoring content or information specifically to a target audience, like chatbots, for personalized customer experiences or targeted ads based on patterns in customer behavior.

Today's AI models can be trained on vast amounts of online data available on the internet, such as copyrighted materials. As such, responsible AI practices have become an organizational imperative.

Types of Generative AI Models

Below are examples of Generative AI models built around text models and multimodal models.

#Types of Text Models

  • GPT-3, or Generative Pretrained Transformer 3, is an autoregressive model pre-trained on a large corpora of text to produce natural language text at high-quality levels. GPT-3's design makes it flexible enough for various language tasks, including translation, summarization, and question-answering.

  • LaMDA, or Language Model for Dialogue Applications, is a pre-trained transformer language model trained specifically on dialogue to produce high-quality natural language text similar to GPT but designed with the aim of picking up on subtleties of open-ended conversation.

  • LLaMA is a small natural language processing model created to meet GPT-4 and LaMDA's goal of optimizing performance while remaining as cost-efficient as possible. As an autoregressive model based on transformers, LLaMA can train more tokens efficiently, allowing for lower numbers of parameters required.

#Types of Multimodal Models

  • GPT-4, released recently as the latest member of GPT class models, is an advanced multimodal approach capable of accepting image and text inputs and outputting text outputs. Pretrained to predict the next token in the document. The post-training alignment process leads to improved factuality measures as well as adhesion with desired behavior measures.

  • DALL-E is a multimodal algorithm capable of operating across different data modalities to generate novel images or artwork derived from natural language text input.

  • Stable Diffusion is an alternative text-to-image model similar to DALL-E, using "diffusion" to gradually reduce noise in images until they match with text descriptions.

  • Progen is a multimodal model trained with over 280 million protein samples to generate proteins based on properties specified using natural language text input.

Challenges of Generative AI Adoption

However, in many regards, the challenges associated with adopting artificial intelligence are similar to general adoption issues. Here, we will specifically discuss those related to its usage when creating new data and content creation processes.

1. Generative AI Data Security

Gen AI data has come under scrutiny following the March 20 ChatGPT outage, in which certain users gained access to chat histories and payment-related details of other users due to an open-source library flaw. As there were concerns about privacy violations related to ChatGPT, it is being temporarily banned by the Italian National Authority for Personal Data Protection.

2. Generative AI vs. IP Rights

OpenAI offers non-API consumer offerings like ChatGPT and DALL-E that enable its models to train on information provided to it as training data from consumers such as you. By making use of such products, OpenAI might train its models using this information provided as training data by you as part of its model training processes.

3. Biases, Errors, and Limitations of Generative AI

Generative AI models themselves represent another significant hurdle to its adoption and usage, especially analytical or generative AI applications. If fed inaccurate data or biased information that reinforces faultiness in models, produced content can quickly multiply such deficiencies, leading to amusing scenarios and outcomes.

4. Dependence on the 3rd Party Platform

Unfortunately, firms attempting to employ generative AI technology may find it challenging given its rapid expansion. What would you do if your government suddenly outlawed one product model or another one that was more affordable, potent, and suitable for your use case? In order to keep pace with changes that arise over time, you must always remain prepared to adapt quickly enough in order to remain effective and relevant in business operations.

5. Limited Talent Pool

Given the excitement around generative AI, engineers who specialize in its development seem in high demand. Unfortunately, there may not be enough qualified candidates available, particularly if commercial experience with specific models is required.

6. AI Training and Acceptance

Implementing AI software solutions into corporate structures involves not only updating technical infrastructure but also revamping organizational processes and work approaches. Changes may meet resistance from staff concerned about its possible repercussions for their roles and responsibilities. Successful implementation requires staff training, which takes up both time and resources.

7. Establishing Return on Investment

Establishing ROI with artificial intelligence investments can be complex. Benefits such as improved process efficiencies or customer service enhancement may not easily translate to specific financial metrics. The investments usually don't bear fruit immediately - necessitating long-term thinking from companies when measuring return.

8. Data Accuracy and Quality

Generative AI requires vast amounts of high-quality data for training purposes and to generate useful and accurate content. However, managing such large volumes is no simple task. Inaccurate, incomplete, or biased information could reduce AI accuracy, lead to algorithm biasing, or lead to legal liability issues arising.

9. Data Security and Privacy

AI is designed to handle large volumes of sensitive and personal data that pose great difficulties when it comes to protecting its security and confidentiality. Companies should implement stringent measures for data protection to adhere to data processing regulations.

10. AI Ethics and Responsibility

With AI's rapid uptake across various sectors, complex ethical and responsibility questions emerge. Transparent decision-making by generative AI (gen AI) tools becomes particularly essential, along with being able to explain those decisions to those impacted.

Legally speaking, AI-driven decisions can pose risks of noncompliance with existing regulations. For instance, Europe's General Data Protection Regulation (GDPR) includes an individual right of explanation, which permits individuals to demand clarity for automated decisions made about them.

The Algorithmic Accountability Act mandates that companies in the US conduct impact evaluations of high-risk AI systems. Biases in AI may lead to discriminatory outcomes and violate regulations. Additionally, countries around the globe are developing specific AI laws that should ensure their systems align with these standards.

11. Engaging Legacy Systems

Integrating AI technologies with older technology environments could present unique issues for enterprises, leaving IT leaders to consider whether to integrate or replace older systems. Financial institutions considering how a language model might help detect fraud may discover that this new technology clashes with how its existing systems handle that task.

Legacy systems often take one specific path toward reaching desired outputs or outcomes. With AI's capability of tapping different types of thinking processes, organizations must find new methods of creating integrations or adopting capabilities. This enables them to reach those same outputs or outcomes more rapidly and cost-effectively.

12. Avoiding Technical Debt

Generative AI could quickly join legacy systems as technical debt if businesses do not see significant transformation from adopting it. An enterprise using it for customer support might declare success on the grounds that human agents will handle fewer cases yet still become trapped in technical debt as time goes on.

Workload reduction alone won't suffice: for AI investments to justify themselves, businesses would need to significantly cut agents from frontline support roles. Otherwise, they simply add another debt layer to their processes and add little benefit in return.

13. Anticipating AI Misuse and Hallucinations

AI models help businesses reduce content creation costs. Unfortunately, threat actors also benefit from lower content creation costs in terms of creating deep fakes more easily. Digitally altered media may closely resemble original media as well as be hyper-personalized. This includes voice impersonations as well as fake art or targeted attacks from threat actors.

Threat actors can abuse AI systems for malicious use. But users themselves could fall prey to its models' misuse: AI hallucinations may provide misinformation and fabricate facts. Hallucination rates vary between 10-22% of generative AI (gen AI) tools' responses in each domain.

14. Providing Coordination and Oversight

Emerging technologies often necessitate organizations to establish centers of excellence (CoE) dedicated to their successful adoption and rollout. These centers could play an essential role when applied to Generative AI technologies.

Without teams dedicated to understanding this capability and capitalizing on it, your chances of obsolescence increase significantly. Centers of excellence should exist across every industry and organization in existence today.

Such an organization could also create policies governing the acceptable usage of generative AI within an organization, according to Smith. He recommended including legal, IT, risk, and marketing departments, among others, for review and input from key stakeholders within it - as well as potential additional ones like HR or R&D departments if applicable.

Future of Generative AI for Enterprises

Staying ahead of a technological revolution is thrillingly exhilarating. Yet, its true scale remains difficult to anticipate accurately, given our tendency towards both overestimation and underestimation. Still, existing offerings in the market remain here and continue their respective processes of evolution, providing some preliminary indications.

Here are three key takeaways about how generative AI is changing the future of enterprises.

Generative AI as an Agent of Change in Software Interaction

Gen AI promises to transform how we engage with software. As more systems incorporate it, we should see an increase in intuitive and personalized interfaces tailored specifically to individual users' specific needs and preferences - thus improving user interaction and customer satisfaction.

Generative AI as a Tool of Personalization

Generative AI's power to generate text, speech, images, music videos, and codes has proven transformative. By taking into account user-specific details, it drastically streamlines task execution while increasing software accessibility. This opens the possibility of creating more flexible adaptive systems capable of handling large volumes of information while offering accurate outcomes more reliably than before.

Generative AI as a Competitive Differentiator

Generative AI will serve as the cornerstone of a brand's competitive position in today's landscape. Its integration can create unique value propositions to boost competitiveness - such as innovative products or customer experiences that set your business apart from its peers.

Generative AI as a Catalyst for Business Transformation

AI will play an essential part in shaping how businesses adapt their operations, business models, and customer relations to today's technological era. This could result in more cost-efficient processes that reduce expenses while simultaneously increasing productivity while at the same time opening new avenues of exploration for innovation and expansion.


Our expedition through the dynamic realm of generative AI has explored its growing significance within enterprise sectors. Now you understand more about startups leading the charge in this space, as well as the solutions they offer to address business requirements.

We have explored the challenges associated with adopting innovative technologies like AI-powered generative agents as well as their transformative potential, outlining their future role in changing business operations, competitive dynamics, and customer relations.

If you still need help or are seeking to implement AI solutions into your business, call experts for guidance from a reliable Artificial Intelligence development company. They'll conduct an in-depth analysis of your organization and goals before offering cost-effective intelligent transformation solutions that ensure maximum return.

Connect with us right now!


Assim Gupta

Saurabh Sharma linkedin-icon-squre

VP of Engineering

VP of Engineering at Closeloop, a seasoned technology guru and a rational individual, who we call the captain of the Closeloop team. He writes about technology, software tools, trends, and everything in between. He is brilliant at the coding game and a go-to person for software strategy and development. He is proactive, analytical, and responsible. Besides accomplishing his duties, you can find him conversing with people, sharing ideas, and solving puzzles.

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