What's Next, Now: June 2024
This month, our crystal ball predicts a potential energy crisis, an anti-AI movement, the growth of games, and more.
If you’ve been keeping an eye on the energy industry, you may not be shocked to hear that electricity is in high demand. But the speed and severity of this demand increase is a big jolt to the industry’s projections.
Experts knew we’d see a demand jump due to increasing interest in EVs and electric appliances as a greener energy source than gas. But what they didn’t predict was a massive spike from data centers, primarily for the processing used to train and operate generative AI. By 2030, researchers estimate that data centers could consume up to nine percent of all U.S. electricity use.
AI companies promise benefits for business, but the tech’s high energy demands are worsening the strain on an already overburdened power grid. Training OpenAI’s GPT-4, only one of many popular GPT models, required 50 times the amount of energy it took to train GPT-3, the previous iteration. And a ChatGPT-powered search uses nearly 10 times the amount of electricity as a more traditional search on Google.
Extreme weather events worsened by climate change only add to the challenge. Heat and storms are becoming both increasingly common and severe, with some of the greatest impact in areas of the country where the grid is woefully unprepared to support the demand. To ensure power supply to the grid remains stable, goals to taper off from fossil fuels are being moved further into the future.
For the time being, companies searching for dominance in the AI arena are also on a competitive hunt for the energy to power it — no matter the cost. Microsoft is already putting forth $10 billion to create clean energy supplies for its forecasted $100 billion investment in data centers. Across the board, data center growth is forecast to exceed $150 billion through 2028.
In the long term, investment in sustainable solutions will be necessary to power AI. Keep an eye on big funding announcements and ambitious initiatives in the green energy space in pursuit of energy-industry progress, like Microsoft’s attempt to generate power from atomic fusion. But in the nearer future, anticipate increasing strains on the grid to lead to more significant outages from services ranging from public transportation to food security. For companies in the energy sector, there may be ample opportunity to offer your services to companies and individuals in need of support.
Earlier this year, we discussed indicators of the public’s increasing hesitance toward tech-accelerated art and content. But when it comes to generative AI, it seems that the descent into the trough of disillusionment has come to the forefront — especially for those in creative industries.
The scrutiny pointed at Adobe over the past few weeks is a cautionary tale for companies in the creative space running headfirst into AI implementation. The American Society of Media Photographers called out the software company for their implication that marketers should “skip the photoshoot” by using AI tools instead. The estate of photographer Ansel Adams also chided the company for their clearly derivative stock images. And a new terms of service agreement raised the hackles of artists suspicious that Adobe would train its AI tools on their work. (And yet, the market didn’t seem to mind.)
On the written side of content creation, a new term is emerging to refer to the glut of low-quality AI content: slop. Considered the AI equivalent to email’s spam, the negative connotations tied to slop certainly convey the derision many consumers and creators feel toward material made by machines. There are, of course, efforts to elevate slop, either through human editing or through more conscientious prompt generation. But as AI becomes increasingly unavoidable in the content we create and consume, some are choosing to avoid the issue altogether by opting for an AI-free approach.
Humans can now be leveraged as a selling point for brands. Tech publisher 404 Media proudly touts itself as “Media for humans, by humans,” and the AV Club’s new ownership is working on removing AI content from the pop-culture website. Cara, an AI-free app for creatives, gained more than 600,000 new users within a week. And the call center AnswerConnect emphasizes their bot-free approach.
Businesses across industries have a chance to jump on the AI-free train, but taking a hardline stance one way or the other may be a challenge. Not to mention that people likely use AI tools far more often than they’re aware, especially as they’re increasingly integrated into the hardware we use every day.
But the AI-free movement shows the benefit of having a clearly stated and established AI stance. Being open with your clients, audience, or business partners about where and how AI is being used not only demonstrates your capabilities with the new tech, but also how you’re living your brand values. Take the time to create a nuanced, sustainable approach to AI — rushing into early adoption comes with risks, and walking back AI initiatives doesn’t look great.
It’s been a distinctly less colorful Pride this year — at least in the corporate world. Many brands who have previously been outspoken in their support of the LGBTQ+ community stepped off the gas this year, opting against releasing Pride collections, running Pride campaigns, or even sharing rainbow-hued social posts. While last year’s Pride was marred by an aggressive uptick in boycotts, this year’s is ruled by apathy.
Corporate pride efforts are showing their fatigue after getting hit with criticism from both sides. On the one hand, consumers have been calling out brands for their empty Pride gestures for years, accusing businesses of “rainbow washing” and pandering to the LGBTQ+ community without offering any substantial support. But on the other hand, boycotts against Pride campaigns from outspoken conservative advocates have scared companies away from making even the bare minimum statement or display of support.
It’s not just Pride. Overall, companies are becoming less and less likely to step into social issues, an abrupt U-turn from where they were just four years ago. Now, businesses are attempting to step back and play neutral. A waterfall of confounding causes has played into this moment: increasingly vocal and vitriolic backlash, tumultuous political tensions from the upcoming U.S. election, polarizing topics dominating current events, and economic issues taking priority for both businesses and consumers.
The shrink away from social issues in business is happening both externally, in messaging and advertising, and internally, in DEI and ESG efforts. While the results of the election may force a change in this dynamic, for now, brands are shying away from anything potentially controversial.
But staying neutral is not necessarily the best compromise. Ron Hill, a professor of marketing at American University’s Kogod School of Business, said for brands, “It’s better to be wrong to some people and right to other people than to be wrong to everybody.” It’s not that organizations need to be vocal about every issue, but there’s no question brands play a role in society and culture. Leadership teams need to decide what they want their brand’s role to be — and what values they want to stand for.
It's been a few years since the green and yellow blocks first took social media by storm. Wordle, launched in October 2021 and acquired by The New York Times a year later, was the reintroduction to games many of us didn’t know we needed. The game's simple yet addictive nature has not only been enjoyable for players but has also proven to be a strategic business decision for The New York Times. As of Q1 of this year, the NYT Wordle page accounts for more than 80% of the NYT's total organic traffic.
The communal aspect of Wordle has resulted in consistent engagement, and other brands are starting to join in on the fun. MorningBrew, The Washington Post, and Vox Media have recently introduced their own games, capitalizing on the growing trend sparked by Wordle’s success. Beyond news outlets, others testing the waters with their own games include LinkedIn and Netflix. LinkedIn games create more opportunities for professionals to engage with their followers, while Netflix’s games offer an experience for viewers to interact with their favorite TV shows or movies in a new way.
Those who launch games successfully are seeing the benefit of more consistent engagement of their website, helping to keep visitors on the site for longer. Additionally, and perhaps more importantly, users are associating a sense of achievement with these brands. As a result, many are coming back for more the next day.
As Wordle's success has demonstrated, there is significant potential for brands to engage audiences through simple yet addictive games. We can expect more brands to dive into this space, creating their own interactive experiences that foster community and daily engagement. Whether it’s through word puzzles, trivia challenges, or other creative formats, the game movement is set to expand as companies seek new ways to connect with consumers.
As more brands hit "play" on their own games, watch out for oversaturation. Just as the podcast industry has experienced a flood of content in the past few years, leading to challenges in finding success, the gaming space could face a similar issue. To avoid becoming just another game among many, brands need to focus on differentiation and authenticity.
The COVID-19 pandemic catalyzed new conversations around health, making it the norm to stay informed on health topics, search online for medical information, and discuss personal health with more than just your doctor. The rise of health wearables and personalized healthcare tech has also made it easier for everyone (not just health-obsessed biohackers) to track their own health. Now, we’re entering the age of DIY healthcare, for better or for worse.
Accessing health information and healthcare as a consumer is easier than ever. TikTok is inundated with health tips and advice, from medical professionals and armchair experts alike. At-home test kits have entered the market, making it possible to test for everything from food sensitivities to colon cancer. Consumers can even source and purchase their own medications, like many are doing with weight loss drugs, where an entire market has cropped up around direct-to-patient access to Ozempic and alternatives. AI chatbots and AI-generated answers in search are also freely offering medical guidance to any questioning consumer, lowering the barrier to personalized health advice to zero — whether that advice is accurate or not.
In addition to ease of access, increasing cracks in the U.S. healthcare system are also pushing consumers toward a DIY environment. Many Americans are going without the drugs they need due to supply shortages, and pharmacies are understaffed. Some consumers are turning to desperate methods to source their own medications, since they are unable to get the support they need from their doctors.
As we navigate this DIY healthcare moment, it's crucial to meet consumers where they are. It’s clear they are seeking out medical guidance and information, but that information is not always accurate. In the realm of health, misinformation and a lack of informational literacy could be seriously harmful. Healthcare and health tech companies have the opportunity to step up and be a trustworthy resource for consumers, bridging the gap between trained, professional doctors and information-hungry consumers. In a fragmented health landscape, it’s likely DIY healthcare isn’t just a trend, but healthcare professionals can help guide it into becoming a safer, more informed practice.
To add to the list of what Gen Z is into: golf, mass-produced subcultural merch, and water.
The new social media? Online news outlets. Publishers like The Verge and 404 Media are exploring ways to integrate with the fediverse (aka decentralized social platforms like Bluesky and Mastodon) to take more control over their referral traffic and audience engagement.
With increasing privacy restrictions and the (eventual) loss of third-party cookies, advertisers are looking for new ways to target their audiences. United Airlines thinks it has a solution.
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