As 2023 draws to a close, one thing is clear: it was the year artificial intelligence (AI) stepped out of the lab and onto the global stage. 

• In 2023, AI became a household term, dominating boardroom discussions, economic forecasts, and even dinner table conversations

It powered tools, from chatbots that held eerily human-like conversations to writing code to poems. However, the potential pitfalls cannot be ignored. 

The next twelve months will be critical in shaping the trajectory of AI. But one thing is clear: 2023 was just the beginning.

So, as we close the book on 2023, let's revisit the year's most impactful AI stories. (We've also hidden a little surprise in today's edition. See if you can spot it! If not, scroll down for the deets)

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• Union Minister Rajeev Chandrasekhar has a long and important to-do list when it comes to AI. He is trying to engage with social media platforms to address the harmful effects of deepfakes, support Indian startups and innovators in leveraging AI, establish large compute facilities locally for training AI models, and develop a framework to separate the good AI from the bad. We had an in-depth conversation with him about all things AI and policymaking. Read the full interview
  
  
• Zerodha's Kailash Nadh is not your typical startup CTO. He ships new products sparsely and hires new engineers for his team even less frequently. This leaves him with ample time to contemplate technology. In a candid and wide-ranging conversation about AI, he told us why India's bellwether IT firms are at risk, how Sam Altman is working to build a regulatory moat for OpenAI, and the dangers of a society where AI replaces humans as worker bees. Read the full interview

• If AI is the steam engine of the 21st century, chips will be the coal that powers the engine. And finding someone who bridges these two worlds is rare, but Raja Koduri is one. Here's a sneak peek at the former Intel chief architect's new avatar as an AI entrepreneur and his vision of how to propel India to AI supremacy. Read the full interview
  
  
• Google, a pioneer in artificial intelligence, was rattled by the sudden success of OpenAI's ChatGPT late last year, and it appeared to have fallen behind in the AI race. However, the tech giant has bounced back strongly in 2023 with the launch of the AI model Gemini and the unveiling of plans to integrate generative AI capabilities across its suite of products. This includes an AI chatbot called Bard, an AI-infused search experience, an improved digital assistant, and a slew of cloud offerings. YouTube is also gearing up to roll out its own set of generative AI tools.
  
  
• Another AI stalwart Meta unveiled plans to integrate generative AI features into its widely-used apps, such as Instagram and WhatsApp. It also released an open-source AI model Llama 2 (with strings attached) along with a suite of other AI models.
  
  
• Global chipmaker giant Intel is not setting up a semiconductor manufacturing plant in India anytime soon. However, that hasn't stopped the company from being bullish on the potential of the market, as it has become the fastest-growing geography in APJ for Intel. Intel's APJ head, Steve Long, spoke exclusively to us, discussing the company’s broader AI vision, changes in the business model, and the business in India. Read the full interview
  
  
• Infosys co-founder Nandan Nilekani and head of People+AI Tanuj Bhojwani believe that India will become the world's top user of AI by 2030, driven by its young population, tech infrastructure, and unique challenges. From tackling healthcare issues to bridging the language divide, AI holds immense potential for India, and the country's "AI-first" approach could give it a global edge, the authors of The Art of Bitfulness said. Find out more
  
  
• AI expert and IBM veteran Sriram Raghavan weighed in on how to approach AI regulatory frameworks, stating that regulations for AI should be risk-based and use case-driven. Giving an example, Raghavan, VP for IBM Research AI, explained that an AI engine recommending the next shoe to buy and an AI engine deciding whether you can get a loan won't have the same risk profile. Find out more
  
  
• It has been a year since the launch of OpenAI's ChatGPT, and an assessment of its enterprise version reveals that a significant majority, around 70-79%, of enterprise customers are originating from the Microsoft Azure-OpenAI partnership rather than directly from GPT-4 or other channels. As of December 1, ChatGPT Enterprise had 22,000-25,000 customers globally. Find out more
  
  
• After initially missing out on OpenAI's success, the mercurial billionaire Elon Musk re-entered the AI world with a new venture called xAI. The startup includes executives from Google DeepMind, OpenAI, and Microsoft Research, with a mission to advance our collective understanding of the universe through AI. xAI recently filed with the US SEC to raise up to $1 billion, of which around $134.7 million has been raised to date. xAI's first product is an AI chatbot Grok that is currently available for Premium+ users of X (formerly Twitter).
  
  
• Forget about OpenAI CEO Sam Altman’s doubts, India's large language model (LLM) race is heating up! From Krutrim's multilingual prowess to Project Vaani's nationwide speech data sweep, Indian companies are building AI models tailored for the country's diverse languages and needs. Dive in to see who's building what.

• Speaking of Altman...OpenAI's 2023 was a whirlwind, culminating in the dramatic ouster and reinstatement of CEO Sam Altman. In just over a couple of days, the ChatGPT creator witnessed boardroom upheaval, employee outrage, and Microsoft intervention, all fueled by Altman's abrupt firing. This saga was AI drama at its peak. Dive into the full timeline to unravel the biggest AI saga of 2023 and see how it all unfolded.

• Wipro is seeking Rs 25.15 crore in damages from its former CFO, Jatin Dalal, in a lawsuit filed for allegedly breaching a non-compete clause by joining rival Cognizant within 12 months of resigning from his role. Additionally, Wipro has demanded that Dalal pays 18% interest per annum until the time of payment. Find out more 

• Meesho ended FY23 on a stronger note compared to the previous fiscal. The e-commerce unicorn reported losses of Rs 1,675 crore, nearly half of the Rs 3,251 crore incurred in FY22. Simultaneously, its revenue from operations grew by 77%, increasing from Rs 3,232 crore in FY22 to Rs 5,735 crore in FY23, driven by customer retention and monetisation efforts throughout the year.
  
  
• Edtech unicorn PhysicsWallah reported a 3.4 times jump in its total standalone revenue, reaching Rs 798 crore for FY23, propelled by increased penetration within the offline category, the company said. Despite maintaining a trend of positive gains, the net profit saw a significant downturn, falling to Rs 16.05 crore in FY23 from Rs 97.8 crore in the prior fiscal year, representing an 84% decrease. This decline was attributed to specific non-cash expenses. Find out more

• In 2023, the Ministry of Electronics and Information Technology achieved key milestones in technology policy. They introduced draft rules for online gaming, designated organizations for fact-checking government-related content, and passed the Digital Personal Data Protection (DPDP) Act. The government also expressed plans to regulate deepfakes and implement further rules under the DPDP Act. Here is a look at the top tech policy trends in 2023.
  
  
• Private equity (PE) and venture capital (VC) funding for Indian startups plummeted by two-thirds in 2023 compared to the previous year, reaching just $8.14 billion. However, December brought a glimmer of hope with a flurry of funding announcements. To gain insights into the private market's trajectory for 2024, we spoke to leading VC investors. Dig deeper
  
  
• Playing video games is emerging as a serious career option, not merely another hobby, with esports players and content creators now earning millions. Top gamers are earning over $1 million, and this figure is expected to peak in the next two years as the esports industry is estimated to reach Rs 1,100 crore by 2025. Go deeper 

P.S.: All the images in today's newsletter were AI-generated (Image credit: Bing Image Creator) 

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