Review of the EMBA HSG alumni party with Prof. Dr. Handschuh

Artificial intelligence: between hype and reality

With a mixture of expertise and charisma, Prof. Dr. Handschuh explained that AI mainly works by analysing probabilities. The topic of ‘Generative AI’ was a particular focus. However, he criticised whether the current hype surrounding this technology is really justified: ‘Does the topic really have value or is it just a bubble that will burst?’

He drew parallels with major, disruptive innovation cycles that occur every 30 years or so. The ability of AI to develop complex language models that can take over both the writing and analysing of texts, such as employee surveys or sustainability reports, is particularly impressive.

Challenges in the application

Prof. Dr. Handschuh pointed out the difficulties that AI poses in the academic field. For example, the authenticity of students is often lost when using AI to write master’s theses. He posed the question: Can AI help us make decisions or even run a company? The current answer is clearly ‘no’, as AI has no long-term memory, among other things. Another challenge lies in the ethics of the models. AI models, which are mainly developed on the American West Coast, harbour unconscious bias. This also applies to political issues or morally critical topics, such as knowledge about the construction of weapons. Prof. Dr. Handschuh warned against the persuasive power of AI-supported narratives, which could potentially lead us back to an unpleasant past.

Further development

Prof. Dr. Handschuh sees the future of AI in further development through reinforcement learning. The larger and more powerful the models, the better their ability to make causal judgements. He mentioned that a new model is expected in November, which should deliver better thought-out and less speculative results by linking several models. Although the technological progress of AI is far from over, the question remains as to whether the current euphoria represents a financial bubble. Prof. Dr. Handschuh sees a certain risk that the industry’s enormous investment in AI could prove to be financially risky, but considers it unlikely.

Discussion and outlook

In the Q&A session that followed, the main issues raised were data security and anonymisation. Microsoft’s Azure Cloud, a cloud solution that processes data within Switzerland, was discussed as a possible answer to these concerns. The challenges of quality assurance when using AI in companies were also discussed. Prof. Dr. Handschuh recommended using several AI systems in parallel and making decisions based on a majority principle.

At the end of the event, EMBA HSG Alumni Co-President Stefan Stübi thanked Prof. Dr. Handschuh for his exciting presentation and inspiring insights into the world of artificial intelligence. The topic was also discussed intensively by the alumni after the lecture at the subsequent Apero reception.

EMBA Community members interested in this highly topical and exciting subject, EMBA HSG Alumni are offering a two-day, intensive deep dive into the topic with this year’s Refresher. The refresher on the topic of ‘Artificial Intelligence: Implications for the World of Work’ will take place on 7/8 November 2024 in St. Gallen. All information and registration details for the EMBA HSG Alumni Refresher can be found here: https://hsgalumni.ch/de/veranstaltungen/detail/?id=770f27ba-8387-ee11-8107-96951f537924