Economic benefits of open foundation models
02.08.2024 - 02:55
This study estimates the core economic benefits of open foundation models for businesses in the US economy. This considers profit uplift, operational efficiencies and cost savings in rent reductions for US businesses having access to open foundation models versus closed foundation models.
Estimating the benefits of open foundation models in AI
To inform the US National Telecommunications and Information Administration consultation on “Dual Use Foundation Artificial Intelligence Models With Widely Available Model Weights”, this study estimates the benefits of a ‘diverse’ generative AI ecosystem, where both open and closed foundation models exist and are available to access, against the counterfactual of a ‘restricted’ ecosystem where only closed foundation models are available.
Open foundation models could support faster adoption of generative AI amongst US businesses and provide an additional $1.5 trillion in benefits for them in 2035
The transparency, competition and innovation supported by open foundation models could accelerate the adoption of generative AI by US businesses in 2035
Open models allow developers to access, deploy, and modify the model… which has played a key role in growing developer activity in generative AI
Open foundation models support transparency, competition and innovation, and are likely to drive higher adoption of generative AI across the US economy.
Open model weights allows researchers and authorities to inspect, test, modify and deploy models independently. US IT professionals recognize the security benefits of open source - 90% of US IT executives believe enterprise open source is as secure or more secure than proprietary software.
As seen with other technologies, open sourcing puts downward pressure on costs and gives businesses greater flexibility and choice. The top reason businesses use open source software is its cost competitiveness.
Publishing model weights enables developers to collaborate on fine tuning and crowdsource better, safer models. The number of third-party variant models publicly released to date is over 70,000.
We modeled likely adoption curves for generative AI across the two scenarios: diverse and restricted.
In a diverse future generative AI ecosystem, there are highly-capable open and closed foundation models (similar to the current state). In this scenario, 88% of US businesses adopt foundation models.
In a restricted future generative AI ecosystem, government regulation or other competitive dynamics results in predominantly closed foundation models. In this scenario, 55% of US businesses adopt Generative AI foundation models.
Read our latest posts
The Zurich-Mandala Climate Risk Index: The impact of climate change on the Australian tourism industry
Mandala Partners (Mandala) in conjunction with Zurich Financial Services Australia (Zurich) has produced Australia’s first Climate Risk Index for the Australian tourism sector. This report analyses the impact of climate change on Australia’s top tourism sites – including major airports, national parks, beaches and museums – under different Intergovernmental Panel on Climate Change (IPCC) scenarios.
9 Sep, 2024
The benefits delivered by faster delivery
Our latest report, commissioned by Amazon, presents new research measuring the improvements in delivery times over the last ten years and the benefits that have flowed to consumers, businesses, and the economy. Average delivery times have halved nationwide over the past 10 years. In metro areas and outer suburbs, average delivery times have fallen from 7-9 days to just 4 days. Online shoppers have saved 3.7 million hours per year. This improvement translates to $1.8 billion to businesses through more sales and lower costs. Read the full report to learn more.
21 Aug, 2024
Assessing the benefits of accelerated digital delivery of government services
Mandala's recent report commissioned by Adobe estimates the benefits of accelerating the adoption of digital transactions by shifting government transactions from traditional channels (in-person, mail and phone) to digital channels. Our report finds that accelerating digital adoption generates benefits for both government and citizens, such as $12 billion saved by governments over 10 years in service delivery costs, $3 billion saved by governments over 10 years due to improved cyber security and 800 million hours saved by citizens over 10 years in seeking and accessing government services (worth $19 billion to the Australian economy). Australia must overcome governance, finance and delivery challenges before it can achieve accelerated adoption. Read the full report to learn more.
20 Aug, 2024
Economic benefits of open foundation models
This study estimates the core economic benefits of open foundation models for businesses in the US economy. This considers profit uplift, operational efficiencies and cost savings in rent reductions for US businesses having access to open foundation models versus closed foundation models.
2 Aug, 2024