Speaker 1: We're focusing on how IBM is advancing generative AI. Arvind
Speaker 1: Krishna he is IBM chairman and CEO. He spoke with
Speaker 1: Wall Street Week host David Weston yesterday at the Milkin
Speaker 1: Institute Global Conference in Los Angeles.
Speaker 2: Exactly a year. I think if edymon but I David.
Speaker 3: We announced it what's the next product at think in
Speaker 3: May last year, and since then, the excitement in our
Speaker 3: clients embracing the technology, getting the technology deployed, asking for expertise,
Speaker 3: and getting projects going.
Speaker 2: I think all of that has been wonderful.
Speaker 3: Our inception to date book of business nine seeds of
Speaker 3: billion dollars.
Speaker 2: That's pretty good for a year. And I think and
Speaker 2: it speaks to the excitement.
Speaker 3: And I think what's even more, our clients are excited
Speaker 3: about what it does for them. You can see them
Speaker 3: the user for customer experience, for programming apporting as it's called,
Speaker 3: as well as for helping improve the enterprise. All of
Speaker 3: this put together is really exciting in how our enterprise
Speaker 3: clients are embracing the generative AI.
Speaker 4: One of the things that people anticipate from general it's
Speaker 4: an increase in productivity. Are you finding that with your customers.
Speaker 4: Are they increasing criticulity and how do you measure that
Speaker 4: increase in productivity?
Speaker 2: I think David is both.
Speaker 3: I think increase in productivity is important, but productivity can
Speaker 3: be made into just cost cutting our efficiency. That's not
Speaker 3: the primary reason. The primary reason I think our clients
Speaker 3: are excited. Can they get more business done while holding
Speaker 3: their costs in somewhat in control? And so it's really
Speaker 3: about more of a revenue generator then productivity alone. Now,
Speaker 3: of course it is a revenue generator because it's making
Speaker 3: you more productive, and I think that is what is exciting.
Speaker 2: Think about customer experience.
Speaker 3: Yeah, you may save a dollar on somebody's time and
Speaker 3: a call center, but that's not why. If you can
Speaker 3: make the end client more satisfied they got that answer quicker,
Speaker 3: they've got a better answer. Are they more likely to
Speaker 3: come back and do more repeat business? I think that's
Speaker 3: far more exciting.
Speaker 4: There's a lot of discussion about how general AI will
Speaker 4: grow and how it will evolve. You've really staked your
Speaker 4: claim on an open architecture, including for IBM, but also
Speaker 4: with Meta in your AI alliance. Tell us why that's important.
Speaker 4: Why is open architecture important in AI?
Speaker 2: Look, it's always around how do you drive innovation?
Speaker 3: And in a case where people worry a lot about
Speaker 3: what is the fair use, what is the copyright, what
Speaker 3: is the IP protection of the data and methodology used
Speaker 3: to train AI, you have both those going on.
Speaker 2: So in order to drive open.
Speaker 3: What we are doing is we're taking some of our
Speaker 3: base models, as Meta has done, and we are putting
Speaker 3: them out under an open license for the epaty license,
Speaker 3: which means people are free to build upon it.
Speaker 2: And what the build upon is their. They don't have
Speaker 2: to give it back to us.
Speaker 3: When you care a lot about maybe some proprietary data
Speaker 3: instead an enterprise and you use that AD skills to
Speaker 3: an AI model and you can now say, oh, because
Speaker 3: yours is open, it's now mine what is best?
Speaker 2: I think it makes it block got interesting to the enterprise.
Speaker 4: So IBM with wats an excess really pursuing enterprise base AI.
Speaker 4: Does that get around the challenges of intellectual property because
Speaker 4: there are issues in consumer facing about copyright about what
Speaker 4: you're going to learn on? Is it the way it
Speaker 4: works for you? The customers using their own data to
Speaker 4: actually educate the model.
Speaker 3: Absolutely, and we're just putting out you talked about open
Speaker 3: right now, we're also right today and tomorrow putting out
Speaker 3: a new technology, a really innovative technology called instruct lab.
Speaker 3: This allows a client to take one of us or
Speaker 3: maybe somebody else's model, take it inside that enterprise, train
Speaker 3: it with some data and some methodology of their own,
Speaker 3: and then the layer on top inside instruct lab is this.
Speaker 2: It does not need to come back to anybody else.
Speaker 2: I think that gets rid of the whole question of
Speaker 2: copyright and fair use.
Speaker 4: How does AI alignes fit with possible government regulation. We
Speaker 4: have some moves in Europe, as you know, there's an
Speaker 4: executive order in the United States divide administration is put out.
Speaker 4: How do those two things fit? Because you talk about
Speaker 4: standards as part of the AI Alliance.
Speaker 3: I think every regulator is worried about three topics, not
Speaker 3: just safety in regulation. They're wanted about innovation. They're worried
Speaker 3: about competition, and they're worried about safety and regulation.
Speaker 2: So when you take those three together, the AI Alliance
Speaker 2: that open really come together to help you foment innovation.
Speaker 3: So I think that that actually helps the regulators to
Speaker 3: think about what is going on here. While I in caution,
Speaker 3: there will be some gardens that are always fut but
Speaker 3: in my experience, open technologies have always been safer and
Speaker 3: more secure than close technologies.
Speaker 4: Is one of the risks that maybe you're obviating with
Speaker 4: your emphasis on open architecture. That's some of that. I'll
Speaker 4: call them big guys get an advantage and really have
Speaker 4: an entrenched position.
Speaker 2: Well, I'll use the concert of a wall garden.
Speaker 3: When you have a walled garden, has those areas and
Speaker 3: technologies been more innovative.
Speaker 2: Or less innovative?
Speaker 3: All of a sudden, the wall garden has always been
Speaker 3: less innovative, and so I think that it actually helps
Speaker 3: you create more competition. Does it avoid regulatory lock in
Speaker 3: off a certain one or two players?
Speaker 2: Likely? But isn't that good for all of us?
Speaker 4: Are you pro regulation?
Speaker 3: I am pro regulation as long as is it as
Speaker 3: light touch and allows innovation to happen.
Speaker 2: I absolutely would be pro regulation.
Speaker 3: If regulation tries to reduce innovation, I think that's a problem.
Speaker 1: And that, of course was Arvind Krishna. He is IBM
Speaker 1: Chairman and CEO and Wall Street Week hoast David Wesson