Balancing contrasts: GenAI hype versus reality, BNPL throws "fintech for good" off-kilter, and our environmental tipping point?
GenAI and $340bn in bank profits in only seven steps.
Artwork of the day: Composition with Red, Blue and Yellow, Piet Mondrian 1930
In 1920, Mondrian found his own style, which he dubbed ‘Neoplasticism’. In the construction of the picture, this process relied entirely on vertical and horizontal lines and the use of the primary colours red, blue, and yellow. The aesthetic objective was to obtain an arrangement of balanced contrasts: non-colours/primary colours; vertical/horizontal. Mondrian sought to give expression to the ‘universal’ through the absolute harmony of the individual pictorial elements.
Today’s newsletter is devoted to the concept of balance. Mondrian’s artistic objective was to “balanced contrasts” between colors and the vertical and horizontal.
Our new romance with GenAI is most definitely a question of balance. I, for one, think that our relationship is currently "unbalanced," and that's why today's first story analyzes AI's economic impact in a historical context. Looking back at history will help us regain our balance, lest we actually believe our own hype.
Speaking of hype, let's look at an example. In the second story, McKinsey promises that GenAI will add $340 billion to banks' bottom line if they follow the seven steps McKinsey graciously outlines. Do you believe it? I don't, and that's why I was relentlessly sarcastic when reviewing the article.
For the record, I love AI, I hate the hype.
And if ever there was an example of "imbalance," it would be BNPL. Touted as one of fintech's greatest achievements, it actually preys on the young, lower-income, and less educated. Does that sound balanced to you? BNPL smashes fintech's mythology that it is “for good.”
The banking outlook for 2024 also could use some balance, as their are storms on the horizon. The problem isn’t just that there is no straight path to a certain digital future, but their very business models are being threatened. It’s almost enough to make you feel sorry for bankers. I don’t.
For the most important “balancing act” of all we look at “Tipping Points” from the Dubai COP28 meeting, which suggests we stop all fossil fuel emissions by 2050. Here too, balance is missing. Most will agree that we need to moderate our impact on the planet, but cutting out fossil fuels in 30 years will likely cause as much human suffering as it hopes to prevent.
Every story today is about balance or lack of it. We all could use a bit more balance.
What do you think?
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One more that should catch your eye
Deloitte’s 2024 Tech Trends covers AI and so much more! Don’t miss it.
Deloitte launches the first of what is bound to be a long string of reports on tech trends for 2024 from consultants. To Deloitte’s credit, they have a nicer hook than most in viewing tech.
Deloitte’s “hook “ is how it views tech as three elevating forces and three grounding forces.
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