What: The WSJ has a look at the Executive Order issued by the US about AI and how it should be interpreted by companies.

Why it is important: AI can be either used as a painkiller (to reduce costs) or a vitamin (to enter new markets) - it is only a question of approach.

The White House has issued an executive order involving artificial intelligence, using the Defense Production Act, which has raised some eyebrows. This move is part of an effort to address the rapid evolution and potential impacts of AI, which has seen significant growth and development since OpenAI's ChatGPT was released 11 months ago. There is a mix of excitement and concern over AI's capabilities, with discussions on whether it will lead to job displacement, human obsolescence, wealth creation, or stringent regulation.

AI is viewed as a tool that could potentially automate a large portion of current jobs, with predictions suggesting it could take over 80% of the tasks within 80% of jobs. However, it's also expected to create new and better jobs. To understand AI's impact, it is likened to either a painkiller that reduces costs by eliminating lower-end jobs, or a vitamin that generates revenue by creating new markets and services.

The AI industry is at a stage where its capabilities and future impact are still uncertain, but it's expected to significantly reshape productivity and the workplace. The advice given is to approach AI with fundamental analysis, categorizing each application as either a painkiller or vitamin, while being cautious of overhyped expectations that could lead to disappointment.

Is AI a painkiller or a vitamin for companies?