Walt Disney, the name that has become synonymous with the magic of entertainment, was founded in 1923 by the legendary Walt Disney and his brother Roy O. Disney. The company has since become a household name, offering unparalleled experiences in animation, theme parks, and media entertainment. With a rich history spanning almost a century, Walt Disney has revolutionized the entertainment industry, shaping popular culture and capturing the hearts of millions worldwide.
From the early days of Steamboat Willie, featuring the iconic character of Mickey Mouse, to the groundbreaking achievement of the first full-length animated feature Snow White and the Seven Dwarfs in 1937, Walt Disney has consistently raised the bar for creativity and innovation. The companyâs timeline is replete with blockbuster hits like The Lion King, Frozen, and Avengers, which have earned billions of dollars in sales and cemented Disneyâs position as a powerhouse in the global entertainment industry.
The companyâs acquisition of Marvel Entertainment, Pixar Animation Studios, and Lucasfilm Ltd. has further expanded its reach and solidified its position as a major player in the entertainment industry.
Walt Disneyâs market share is staggering, with a presence in every facet of entertainment, from theme parks to streaming services. The companyâs current position in the market is unrivaled, with an annual revenue of over $65 billion, making it one of the largest media conglomerates in the world.
But the success of Walt Disney is not just measured in numbers. The companyâs achievements are marked by its ability to capture people’s imaginations across generations, delivering stories that inspire, entertain, and touch hearts. This is largely due to its groundbreaking marketing strategies that have become a hallmark of the Disney brand. From the creation of iconic characters to theme park experiences, Disney has always been at the forefront of marketing, capturing the attention of audiences worldwide with its unique blend of creativity and innovation.
Walt Disneyâs impact on the entertainment industry is immeasurable, with a legacy that continues to shape popular culture. Its legacy lives on as a testament to the power of creativity, imagination, and hard work. The companyâs impact on the entertainment industry cannot be overstated, and its continued success is a testament to the enduring appeal of its timeless characters and stories.
Who doesnât love a good Disney story? From young children to adults, the Walt Disney Company has managed to capture the hearts of audiences of all ages and backgrounds. But who exactly is the target audience for Disneyâs products and experiences?
Disneyâs primary audience is families with young children. This includes parents, grandparents, and caregivers who are seeking wholesome and entertaining content that is appropriate for all ages. However, Disneyâs appeal extends beyond just families. The company also targets teens and young adults through its Disney Channel and Marvel franchises, as well as older adults who have a nostalgia for classic Disney films and theme park attractions.
Disney’s Theme Park
Disney has a global reach, with a presence in nearly every corner of the world. The company tailors its products and experiences to specific regions and cultures, recognizing that different audiences have unique preferences and expectations. For example, Disneyâs theme parks in Asia incorporate more cultural elements and themes specific to those regions.
Disneyâs target audience is not just limited to its entertainment offerings but also extends to its consumer products division. The companyâs merchandise appeals to a broad range of demographics, from children and families to adult collectors. Disney also recognizes the importance of inclusivity and diversity in its products and marketing, making efforts to represent a variety of cultures, ethnicities, and identities.
The Walt Disney Company has a diverse and far-reaching target audience that spans across demographics and geographic locations. The companyâs ability to create content and experiences that resonate with such a wide range of people is a testament to its success and enduring appeal.
The Walt Disney Company is no stranger to successful marketing. With a brand as iconic as Mickey Mouse, the company has mastered the art of creating magical experiences for its audience. But how exactly does Disney achieve this? The answer lies in its marketing mix.
The marketing mix is a set of tools and tactics that companies use to promote and sell their products or services. Disneyâs marketing mix consists of four main components: product, price, promotion, and place.
Product
Disneyâs products are its movies, TV shows, theme parks, and consumer products. The company is known for its high-quality content that appeals to audiences of all ages. Its focus on storytelling and its ability to create relatable and endearing characters has been key factor in its success. Disney has leveraged its intellectual property to create a wide range of merchandise, from toys and clothing to home decor and collectibles.
Disney’s products
Price
Disneyâs pricing strategy varies depending on the product and the target audience. For example, ticket prices for its theme parks can be quite expensive, but the company offers discounts and promotions to make it more accessible to families. Similarly, Disneyâs consumer products range from affordable items like keychains and stationery to high-end items like designer handbags and jewelry.
Disney’s Products Pricing
Promotion
Disney is a master of promotion. The company utilizes a variety of tactics to create buzz around its products and experiences. This includes traditional advertising like TV commercials and billboards, as well as more innovative approaches like social media campaigns and experiential marketing. Disney also partners with other brands to create co-branded products and experiences, further extending its reach and appeal.
Place
Disneyâs products and experiences are available in a variety of places, including its theme parks, retail stores, and online. The company has strategically placed its theme parks in locations that are easily accessible to its target audience, and its retail stores can be found in major shopping centers around the world. Disney has also invested heavily in its online presence, offering a variety of digital experiences and merchandise through its website and mobile apps.
Disneyâs marketing mix is a testament to the companyâs ability to create a cohesive and memorable brand experience. By carefully crafting its products, pricing, promotion, and place, Disney has built a loyal following of fans who eagerly await the next release or announcement.
Walt Disney – Marketing Campaigns
The Walt Disney Company has had countless successful marketing campaigns over the years. Here are just a few of its most memorable:
Share a Coke with Mickey and Minnie
In 2018, Disney partnered with Coca-Cola to create custom Coke bottles featuring Mickey and Minnie Mouse. The campaign encouraged consumers to share a Coke with their favorite Disney character and generated a lot of buzz on social media.
Share a Coke with Mickey and Minnie
Dream Big, Princess
This ongoing campaign features inspiring messages and images of Disney princesses, aimed at empowering young girls to follow their dreams and be their best selves. The campaign includes merchandise, events, and social media content.
Dream Big, Princess | Go Everywhere, See Everything | Ariel
Unforgettable Happens Here
This campaign was launched in 2015 to promote Disneyâs theme parks. The campaign featured a series of commercials showcasing magical moments that can only happen at Disney parks. The ads were emotional and relatable, striking a chord with viewers.
Unforgettable Happens Here
Frozen 2
Disneyâs marketing for the sequel to the wildly popular âFrozenâ movie was a masterclass in creating hype. The company released teasers and trailers months in advance, building anticipation and excitement among fans. The marketing campaign included merchandise, music releases, and a dedicated Snapchat filter.
These campaigns are just a few examples of Disneyâs ability to create memorable and effective marketing strategies. By leveraging its strong brand and emotional connection with consumers, Disney has been able to create campaigns that resonate with audiences of all ages.
Walt Disney – Marketing Strategies
The Walt Disney Company is renowned for its ability to create magical experiences that captivate audiences of all ages. But behind the magic lies a carefully crafted marketing strategy that has been honed over decades. Here are  Disney’s top marketing strategies:
Disney understands the power of emotions in marketing. The marketing campaigns often evoke feelings of joy, nostalgia, and wonder, creating a strong emotional connection with their audience.
Cross-promotion
Disney leverages its extensive intellectual property to create cross-promotional opportunities between its various products and experiences. For example, a popular movie can be turned into a theme park attraction, which can then be turned into a consumer product.
Experiential Marketing
Disney creates immersive experiences that bring its brands to life. Whether itâs a trip to one of its theme parks or a virtual reality experience, Disneyâs marketing focuses on creating memorable moments for its audience.
Partnerships
Disney has a long history of partnering with other brands to create co-branded products and experiences. These partnerships expand Disneyâs reach and appeal, while also providing value to the partner brand.
Merchandising
Disney has an extensive line of consumer products, from toys and clothing to home decor and collectibles. The merchandising strategy focuses on creating high-quality, unique products that appeal to its fans.
Digital Marketing
Disney has invested heavily in its digital marketing efforts, creating engaging content for social media, mobile apps, and other digital platforms. The focus on digital marketing has allowed it to reach a wider audience and engage with fans in new ways.
Community Building
Disney has a dedicated fan base that is passionate about its brands and experiences. The company has created online communities and forums where fans can connect with each other and with Disney itself.
Corporate Social Responsibility
Disneyâs marketing strategy includes a focus on corporate social responsibility, including initiatives around sustainability, diversity, and philanthropy. These efforts align with the companyâs values and resonate with consumers who care about social issues.
Innovation Â
Disneyâs marketing strategy is characterized by a focus on innovation. The company is constantly exploring new technologies and approaches to marketing, from virtual reality experiences to personalized content recommendations.
The Walt Disney Companyâs marketing strategies are a masterclass in building a solid brand identity, connecting with audiences, and creating magical experiences. Whether you are a marketer looking to build a successful brand or a start-up trying to make your mark in a crowded market, there are many lessons to be learned from Disneyâs approach to marketing.
One of the key takeaways from Disneyâs marketing strategies is the power of storytelling. By creating compelling stories that resonate with audiences, Disney has been able to create a strong emotional connection with its fans and build a loyal following.
Another important lesson is the importance of building a community around your brand. By fostering a sense of belonging and shared experiences, Disney has been able to create a community of fans who are invested in the brand and support it through thick and thin.
Finally, Disneyâs focus on innovation and staying on the cutting edge of technology is a reminder that marketing is always evolving. To be successful in todayâs fast-paced world, it is essential to embrace change and constantly push the boundaries of what is possible.
So, whether you are a marketer, a start-up, or just someone who loves Disney, there is much to be learned from the company’s marketing strategies. By taking these lessons to heart and applying them to your own brand, you too can create a magical experience that will captivate your audience and keep them coming back for more.
FAQs
What is the target audience of Walt Disney?
Disneyâs primary audience is families with young children. This includes parents, grandparents, and caregivers who are seeking wholesome and entertaining content that is appropriate for all ages. However, Disneyâs appeal extends beyond just families. The company also targets teens and young adults through its Disney Channel and Marvel franchises, as well as older adults who have a nostalgia for classic Disney films and theme park attractions.
What are the top marketing strategies of Walt Disney?
Here are the top marketing strategies of Walt Disney:
A stock market, share market, or equity market â whatever moniker one uses â is an aggregation of buyers and sellers of shares (also called stocks) which represent ownership claims on various businesses. These can include securities listed on a public stock exchange and stock that is only traded privately. Private stocks are shares of private companies which are sold to investors through equity crowdfunding platforms. Investment strategies drive investment in stocks.
Stock market trading is one of the most important ways for companies to raise additional financial capital for various business activities including expansion. While the price of the stock is associated with the companyâs business investments and other economic activities. However, changes in stock prices are caused by external factors such as socioeconomic conditions, inflation, exchange rates, fiscal policy, and the political situation of a country.
A sudden dramatic decline of stock prices across a major cross-section of a stock market resulting in a significant loss of paper wealth is defined as a stock market crash. While there is no numerical specification, the term is applied to a decline of 10% or more in a stock market index. It is a social phenomenon of external economic events combined with crowd psychology that drives participants to panic selling. Stock market crashes often follow speculation and economic bubbles. Some reasons that can drive stock market crashes are â
Niall Ferguson aptly stated – “Before the crash, our world seems almost stationary, deceptively so, balanced, at a set point. So that when the crash finally hits â as inevitably it will â everyone seems surprised. And our brains keep telling us itâs not time for a crash.”
The Biggest Stock Market Crashes
As quickly and unexpectedly as a stock market crash can occur, its effects can be deep and long-lasting. Â And history has noted some biggest crashes over the years.
2020 â The Covid-19 Crash
2020 â The Covid-19 Crash
As the pandemic hit globally, governments across the world shut down entire economies to restrain the spread of the deadly virus. It caused an economic shock rattling investors. The financial markets recorded a loss of 34% between February and March 2020. The largest one-day drop since Black Monday of 1987 was on March 16, 2020, with a loss of 12.9%.
However, unlike other crashes in history, this one recovered quickly and the market regained its peak within 33 days â a historically fast turnaround. The quick recovery is also, partially, a result of the Federal treasury injecting USD 1.5 trillion into the financial markets and Congress passing a USD 2.2 trillion aid package. Despite the human cost due to the pandemic and the financial suffering of millions of people, the stock markets took an upward run. Valuations soared and companies recorded profits.
The foundation of this financial crisis was laid in 1999 by the Federal National Mortgage Association (FNMA). In a bid to make home loans more accessible, banks relaxed regulations and due diligence parameters and began lending money to people with low credit ratings and less money to spend on down payments. Their elevated risk profiles were evident in the mortgage repayment terms â such as high-interest rates and variable payment schedules. It fuelled an explosive growth in mortgage debt and home sales as previously ineligible borrowers and investors could now avail of loans. New homeowners were taking on additional debts to purchase other goods. Adding to this chaos were Financial Institutions using cheap debt to boost ROI and companies indebting themselves to capitalize on the opportunity of a surging economy. Â
This debt-fuelled market began showing signs of an impending collapse in 2007. The foreclosure rate on residential homes was high as was the unemployment rate, which was increasing. It was a very specific trigger that caused the index to fall by 57% and took the global markets with it in September 2008. Â
Recovery came in the form of government bailouts, fresh cash injections into the economy, and a historical lowering of interest rates. The global markets took close to 2 years to recover from this disaster.
2000 â The Dot Com Bubble
A bubble is caused by valuations that donât match the companyâs financial stability. It is spurred by eager investors trying to chase the next big thing. During the late 1990s, the valuation of internet-based companies rose sharply. Many investors speculated on the dot-com companies, even the ones without revenue or scalable business plans. Huge money was invested driving up the value of any internet-based company. Inevitably, the Federal Reserve tightened its monetary policy restricting capital flow and causing this dot-com bubble to burst. Nasdaq lost 77% of its market value after rising to 500% within a space of 5 years. By the turn of the century, the stock market was reeling from this crash which would take 15 years to recover. Â
This crash was a result of a series of events and, the worst, since the Great Depression of that time. There were financial reforms that included the unlinking of the dollar to gold. This caused instability of the dollar causing a runaway inflation. Parallelly, the economic recession was adding stress, and then, in 1973, the price of oil quadrupled due to the oil crisis. This sped up inflation. All these events, combined, created a market crash of 48%. It took 21 months for the markets to recover from this crash.
1929 â The Great Depression
Clocking a market crash of 89% which took 25 years to recover is, possibly, the worst stock market crash in history. It caused the Great Depression which would only recover in 1954. This crash ended the Roaring Twenties during which the economy expanded significantly. The Dow Jones market saw a sixfold increase between 1921 and 1929 up from 63 points to 381 points. Beginning a descent in early September of 1929 it accelerated during a two-day crash on October 28, 1929, and October 29, 1929, by 13% and 12% respectively. Within a month the Dow had lost half its value. It continued its loss for the next 3 years and bottomed out after losing 89% by the summer of 1932. This great loss is attributable to excessive leverage as investors began buying stock under margin loans. Consumers were adding to this by purchasing items on credit. When this debt bubble burst it caused the greatest economic crash in modern history.
The Great Depression – 5 Minute History Lesson
How to prepare for a Downturn
Market downturns and unexpected crashes are a part of investing. Panic selling only adds to the loss, however, with a little patience, investments make up their losses with time. There are a few things that can be done to shore up finances during a period of volatility and uncertainty.
Paying off high-interest debt
Having a fully funded exclusive emergency fund to support for at least 6 months
Curbing unnecessary and excessive spending habits
Create a diversified investment portfolio
Conclusion
A market study of the biggest crashes in history provides valuable insights into how the financial markets behave to various catalysts and how perception can drive consumer mood. It is essential to, first, study the market, understand the risks, and then invest.
FAQs
What is a stock market crash?
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market resulting in a significant loss of paper wealth.
What are the biggest stock market crashes in history?
The biggest stock market crashes in history are:
2020 â The Covid-19 Crash
2008 â The Mortgage Crisis
2000 â The Dot Com Bubble
1973 â The Oil Crisis and Economic Recession
1929 â The Great Depression
How can one be prepared for the downturns occurring in the stock market?
There are a few things that can be done to shore up finances while downturns occur in the stock market:
Paying off high-interest debt
Having a fully funded exclusive emergency fund to support for at least 6 months
The global agencies SEO services market which was worth USD 41.97 billion in 2021 is expected to grow at a CAGR of 20.7% to reach a total valuation of USD 108.89 billion by the year 2026. The primary factor driving this growth is the increasing number of people using smartphones and internet services. This has made access to information and video content easy thereby requiring to optimize the search, positively impacting the SEO services market.
Simply explained, an SEO agency is an external company that acts as an additional marketing arm with a goal to increase visibility in searches across devices and audiences as well as enrich user journeys through websites to increase the conversion rates from prospective to customers. An SEO agency helps a business achieve â
The market of SEO agencies is saturated with SEO agencies being probably present in every area. Due to its crowding, it falls to the business owners to research and choose the SEO agency that best fits their needs. Having said that, there are a number of signs that must not be ignored in the quest for an SEO Agency. These are the warning signs that indicate the SEO agencyâs ineffectiveness and highlight their incompetency.
Making Tall and Unrealistic Promises
This is probably one of the most significant signs of an incompetent agency. For instance, a promise of permanent or long-term holding the number one position for certain keywords is a promise that is as unreal as it is impossible. Rankings are consistently shifting due to the sheer volume of the changes that various websites are making to their content. As and when competitors make changes to their online content, the various search engines are updating their results pages as well.
Owning a Businessâs Data and Logins
A demand of this nature coming from any SEO agency should raise many red flags as this is an attempt to gain full control over the businessâs logins, data, and reporting. This kind of demand can appeal to business owners with the mindset of allowing such agencies to handle the entire gamut of SEO-related work because they are being paid to handle it. However, this can prove dangerous as such data and logins can be used to keep the contract valid. Such a move from the business owner can also land the business in a legal dispute and also can be costly due to creating new logins and adding new tracking codes to the business website.
Thin and Low-Quality Content on Their Site
As competitive as the world of SEO is, usually the content on SEO sites is extremely engaging and ranks higher in gaining audience attention due to effective keywords. However, what also factors in the ranking of a particular page is the length of the content and its details. Hence if the SEO agencyâs own content on their page does not meet the criteria for high-ranking pages, it is a warning sign for any prospective client to move away from that particular agency. Another concern is when SEO agencies do not provide important and detailed explanations of complex concepts like SEO, PPC, and the pricing matrix. The co-relation is simple â if they cannot produce strong content for themselves, they are incapable of producing strong content for anyone else.
No Maintenance and Only One-fixes
Optimizing a website for the best possible results isnât a one-time task. Itâs an ongoing and never-ending maintenance process. And a good and effective SEO agency knows it. SEO trends are continuously evolving and changing due to consistent shifts and change in search engines and users. SEO agencies who do not consistently update, upgrade and maintain their sites cannot offer effective strategies to their clients.
No Understanding Of the Industry or Competition
SEO is a marketing technique and thereby sensitive to different industries and the competition within them. If the agency does not take the initiative to understand the industry in which the business operates as well as the competition it faces, it cannot offer an effective solution or strategy to achieve high-ranking content. If an SEO agency does not understand the business, its clients, its concerns, its USP, and more importantly its competition, it is an agency that should not be considered.
How to Hire an SEO Expert | Find an SEO Agency
Unclear Approach Methods
SEO agencies, although different in their ideology, follow a set of best practices that are based on ethics and delivering value for money to the client. Any SEO agency that tries to hide its method of operating is, most likely, engaging in questionable practices like cloaking, link schemes, keyword stuffing, and unrelated directories. Such practices are most likely a waste of money and do not contribute towards any discernible results for the business.
Conclusion
SEO agencies are everywhere and hence, weeding out the effective ones is a process that might be time-consuming. However, it is always to the advantage of the businesses and their owners to ascertain that the SEO agency working on their behalf is genuine, engages in ethical business practices, and showcases deliverable results backed by realizing it.
FAQs
What is an SEO agency?
An SEO agency is an external company that acts as an additional marketing arm with the goal to increase visibility in searches across devices and audiences as well as enrich user journeys through websites to increase the conversion rates from prospects to customers.
What does an SEO agency help a business to achieve?
An SEO agency helps a business achieve â
Better visibility
Better traffic
More leads
More conversions
Better ROI
What are the signs of an ineffective SEO agency?
Below are the signs of an ineffective SEO agency –
This article has been contributed by Deepti Sharma, Director, ThinkerPlace.
Artificial intelligence has fundamentally changed how we do our jobs. Our reliance on AI has made life easier and more ingrained in our culture as a whole.
We used to rely solely on Google to provide us with information, but now we ask AI to do our work for us. The question that we must all ask is: How will it affect the next generation?
In the STEM sector, entrepreneurs in AI and technology are quickly changing how we study and approach STEM subjects. STEM education is a crucial part of education systems worldwide as it prepares students for a rapidly evolving workforce.
Artificial Intelligence’s impact on STEM learning and education, in general, has been up for debate and discussion for quite a long time now.
Science, technology, engineering, and mathematics are the four key academic areas that are highlighted. Historically, lectures, books, and experiments have been used to teach these subjects. STEM education is evolving, though, with the rise of AI and digital businesses. Innovative tools and methods are being used by AI and tech businesses to improve STEM education and make it more open to all students.
To improve instruction and learning quality, several AI technologies are applied in STEM education. Because of its complexity, it is currently difficult for AI technology to make STEM learning simpler for students. To accomplish high-quality STEM learning, one must carefully take into account these complicated elements because there are many important concepts involved.
AI technologies can help students develop crucial skills like cognitive thinking, problem-solving skills, creativity, and more. Many articles and statistics report good efficiency and algorithm accuracy when AI is used in STEM learning.
Statistics on How AI Will Transform the STEM Industry
Now letâs take a look at how AI will transform the entire STEM industry with some statistics:
The International Federation of Robotics estimates that the number of industrial robots installed worldwide will reach around 3.1 million units by 2025, driven in part by advancements in AI and machine learning.
GitHub’s “2022 State of the Octoverse” report states that the use of machine learning and AI on the platform grew by 200% in 2022, indicating a rising trend of AI adoption in software development.
A study by PricewaterhouseCoopers (PwC) suggests that AI technologies can contribute up to $15.7 trillion to the global economy by 2030, with the largest impact expected in the manufacturing and engineering sectors.
Potential of AI in the STEM Industry
AI offers enormous potential for automating routine, repetitive jobs, freeing scientists, engineers, and researchers to concentrate more on innovative work. Another way AI and tech entrepreneurs are changing the STEM sector is by developing new tools and technology that are fundamentally altering how research and development are carried out. To analyze enormous datasets and spot patterns and trends that would be challenging for people to spot on their own, AI-powered techniques are now being deployed. This is causing discoveries in industries like healthcare, where artificial intelligence is being used to create novel cures and treatments for illnesses.
In sectors like manufacturing, where robots can complete jobs quickly and accurately, AI-powered automation also increases productivity.
AI assists in analyzing and gaining useful insights from enormous datasets as a result of the growing amount of data being generated. As a result, predictions and decisions can be made with more accuracy. Machine learning algorithms can spot patterns, correlations, and trends in data that humans might overlook.
In addition to revolutionizing the STEM sector, AI and IT entrepreneurs are also generating new career prospects. There is a rising demand for individuals with the skills necessary to create and manage these systems as more businesses adopt AI and other cutting-edge technologies. As a result, there are more positions available in disciplines like data science, machine learning, and artificial intelligence.
Personalized Learning: AI can revolutionize STEM education by providing personalized learning experiences. Intelligent tutoring systems can adapt to individual students’ needs, pacing, and learning styles, offering tailored instruction and feedback. This personalized approach enhances students’ understanding and engagement with STEM subjects.
AI and technology startups are also supporting emerging technologies such as Virtual Reality (VR) and Augmented Reality (AR) that make STEM learning more immersive and engaging. With VR and AR, students can experience complex concepts and scenarios that would otherwise be an impossible task. For instance, students can explore the human body, the solar system, or even the intricacies of a molecular structure in a virtual environment. This approach to learning makes it easier for students to comprehend complex concepts, leading to better learning outcomes. âEven at ThinkerPlace, we are bringing in innovative AI-driven toys for kids, through which they get a rich and fun experience of STEM learning,â says Deepti Sharma.
AI and technology are also working towards gender equality and bridging the gaps in STEM education. Historically, STEM subjects have been a male-dominated field, and the industry has struggled to attract women and people from diverse backgrounds. However, AI and technology startups are leveraging their innovative approaches to make STEM education more inclusive.
Conclusion
Overall, AI has the potential to revolutionize the STEM industry by automating tasks, personalizing learning, enhancing data analysis, advancing research capabilities, transforming healthcare, improving engineering processes, and addressing complex challenges. It empowers scientists, engineers, and researchers to push the boundaries of knowledge and innovation. The potential of AI to improve STEM is seamless. It can help the industry go beyond and excel in innovations that no one had ever thought of.
Haptik CEO and Co-Founder Aakrit Vaish recently said this in a LinkedIn post â âToday Iâm so thrilled to see that we have our own little âHaptik Mafiaâ! There are close to 20 startups that have been started by ex-Haptikans.â
When he used the term âHaptik Mafiaâ he was, of course, referring to his colleagues who worked with him at Haptik and have now gone on to begin their entrepreneurial journey by launching new startups.
Vaish mentions in this post â âWhen we started Haptik, I had a dream beyond just making the business successful. I used to often tell potential hires that at Haptik, we want you to âenter an employee, and leave an entrepreneurâ.â
Founded by Aakrit Vaish and Swapan Rajdev in August 2013, Haptik was an Indian enterprise conversational AI platform. Its first product, the Haptik app was launched in March 2014. It was a personal assistant that was chat-based allowing its users to get things done. In India, the app was available on the Android and iOS platforms. Within the first six months, by September 2014, the platform added 125 chat experts who helped users with their queries.
Ex-Haptikans â Where are they
As an AI company that grew and keeps momentum under the Reliance umbrella, its team is motivated and focused. There are a few ex-Haptikans who moved on from the company to then follow their entrepreneurial dreams and have succeeded with gusto.
Akhil Aryan
Akhil Aryan – Co-Founder, ION Energy
He worked with Haptik in the Product and Growth section between 2015 and 2016. His obsession with the nature of electrons and energy encouraged him to launch ION Energy. His firm is engaged in building cutting-edge technologies that accelerate the earthâs new energy transition.
Ronak Agrawal
Ronak Agrawal – Co-founder, SkilloVilla
Working with Haptik in 2016 as a Growth Manager, Ronak Agrawal is now the Founder and CEO of SkilloVilla which is engaged in building scalable solutions for emerging markets in education and skill development.
Prateek Gupte
Prateek Gupte – Co-Founder, Relove
Prateek Gupte is the Co-Founder of Relove, a company engaged in waste-free subscription service for personal care products that reuse packaging. He moved on from Haptik after working with them for more than four years. His last position with Haptik was as a VP for Products.
Rahul Zutshi & Kartik Poddar
Rahul Zutshi and Kartik Poddar – Co-Founders, Zohort
Kartik worked with Haptik for over 3 years and his last held position was Chief Business Officer. Rahul Zutshi was with Haptik for less than a year as a Marketing Director. The two ex-Haptikans launched Zohort a skill tech company building a software salesforce.
Achal Kothari
Achal Kothari – Co-founder, Bytebeam
Moving on from Haptik after more than 4 years as the Head of Customer Success, Achal is now building Bytebeam to transform the way IOT apps are built.
Atif Khatri
Atif Khatri – Co-Founder, TalentStack
He served as Head of Recruitment at Haptik between 2016 and 2017. Atif has now built TalentStack â Your Global Talent Partner which is a global recruiting business.
Jubin Varghese
Jubin Varghese – Co-founder, Gegadyne Energy
Working as the Quality Control Lead at Haptik for three years, Jubin is now the Co-Founder and CEO of Gegadyne Energy to change the way EV batteries are produced.
Pratham Agrawal has worked with Haptik for over two years as a Tech Lead, Frontend. Simranjot Singh moved on from Haptik for more than 3 years as an iOS Engineer. They collaborated and co-founded Canonic which is working towards enabling serverless backends.
Aaryamaan
Aaryamaan – CEO, Prophetic Ventures
Moving on from Haptik Aaryamaan decided to give back to the global ecosystem as an investor in Prophetic Ventures. He is also building an NFT startup named Ludo Labs.
Growth Timeline of Haptik
August 2015 â Dan Roth joined Haptikâs Board of Advisors who helped to scale the platforms Natural Language Processing (NLP). It was also appointed the official personal assistant of Mumbai City FC and provided a customer support chatbox to Swipe Telecom in the same year
November 2017 â The company launched a full-scale enterprise-level bot management platform which included an analytics dashboard
Year 2019 â Haptik launched a voice bot for one of the largest food chains in the world. It allowed customers to place orders using Alexa. It provided accurate time information on product availability as well as helped users find the nearest outlet of that food chain
March 2019 â Haptik entered into a partnership pact with the Government of Maharashtra to develop a chatbox for its Aaple Sarkar platform providing conversational access to information regarding the 1400 services that were managed by the state government
April 2019 â Reliance Jio Infocom Ltd., bought an 87% stake in the company for USD 100 million. Haptik was renamed to Jio Haptik Technologies Ltd
July 2019 â The new company Jio Haptik Technologies Ltd., acquired Convrg, a Los-Angeles based startup to expand its technical expertise and business outreach to North America
November 2019 â Saumil Shah joined Jio Haptik as the Vice President of Engineering
December 2019 â Jio Haptik developed the chatbox âProf. Simply Simpleâ for Tata Mutual Fund. The chatbox helped in resolving routine, repetitive queries leaving the Customer Support Team free to resolve complex queries
March 2020 â Jio Haptik built a WhatsApp chatbox called MyGov Corona Helpdesk for the Government of India. The chatbox helped create awareness about the coronavirus
December 2021 â Jio Haptik was awarded special honor by Meenakshi Lekhi â Minister of State for External Affairs for partnering with MyGov to create the Corona helpdesk
Year 2022 â Jio Haptik announced to build a chatbox for a hotel management and ticket booking platform RedDoorz, located in Indonesia
Power an end-to-end shopping experience on WhatsApp
Conclusion
As Jio Haptik Technologies Ltd., continues on its path of excellence it has ranked in the top 5 in AI and Analytics Products Category for G2 Best Software Awards 2022. Looking at the ex-Haptikans and their successful journeys hereâs wishing them all the best for the future.
FAQs
Who is the CEO of Haptik?
Aakrit Vaish is th CEO and Co-founder of Haptik.
When did Reliance Jio buy Haptik?
Reliance Jio Infocom Ltd bought87% stake in the company for USD 100 million in April 2019. Haptik was renamed to Jio Haptik Technologies Ltd.
UPI or Unified Payments Interface is an instant real-time payment system created by the National Payments Corporation of India, which likewise implies that the Reserve Bank of India controls it. It helps to instantly transfer funds between two bank accounts with the help of a mobile app. The most common ones you might have come across in recent times are Paytm, PhonePe, MobiKwik, iMobile, BHIM app, among many others. Even the banks that boast of their own UPI app include Airtel Money, Axis Pay, Baroda MPay, Pockets-ICICI Bank, SBI Pay, Yes Pay, and so many others.
UPI reported 6.28 bn transactions in July 2022 that amounted to Rs 10.62 trillion, which is the highest-ever transaction volume since 2016! Â
In the words of Indian economist Raghuram Rajan, UPI means the
“WhatsApp moment for banking”
What is UPI? | Unified Payments Interface Explained
If you’re new to UPI or want to learn more about how it works, this blog is for you. In this post, we’ll cover everything you need to know about UPI, including its features, services, advantges and disadvantages, and how to use it. We’ll also discuss different types of UPI apps and how to use them. By the end of this blog, you’ll have a clear understanding of UPI and how it can benefit you in your daily life.
The UPI payments or Unified payments interface is a payment mechanism that allows instant money transfer without bank details. The UPI is developed by the NPCI and rather than a bank account number and IFSC code, the virtual payment address is utilized to pay through the UPI. UPI offers a wide range of services that make it a convenient and efficient payment system.
Here are some of the key services offered by UPI:
The most cost-effective way of money transfer
Fund transfer via NEFT entails a minimum charge of Rs 2.5 per transaction while the IMPS charges Rs 2.5 per transaction. On the other hand, UPI only charges 50 paise or less per transaction through the Unified payments interface. As such it has the potential to promote non-cash transactions of small amounts throughout India, which it is currently taking up seriously.
Cash-free functioning
UPI payments have made it a possibility for you to transfer a small amount to your vegetable vendor in a matter of seconds. Think Paytm or BHIM cards hanging on the local grocery store replacing the trouble you went through earlier to get a proper change. Think of the lesser time spent in the ATM lines. Going cash-free removes many hassles from your life and makes everything smoother in the age of digital India.
Security
People have stuck with their cash payments because primarily they couldn’t rely on online transactions and card payments as they ask for bank account details. However, the UPI method of payment cracks the deal here. The payment through the UPI does not require card details or the details of a bank account. You just need to enter your virtual payment address this way (think about the mobile number linked to your UPI app).
Real-Time Fund Transfer
Everything about the UPI app is an instant formula. Traditionally, adding new pay for the online fund transfer takes some time. This time varies from half an hour to 24 hours. In UPI, you can add a new payee instantly and transfer funds. Also, the process of fund transfer takes a few seconds with the help of a good data connection, which is very accessible for everyone now!
Cheaper alternative to POS machine
It is difficult to pay with the help of a banking card (debit or credit) everywhere you go. Most of the merchants donât have a card swiping machine or sometimes the machines fail to catch signals. The machine in question is known as the POS terminal, which is a costly affair for the billing party involved. They have to pay the service charge for each transaction, which varies from 1.25% to 2.5% of the transaction value. This is why the UPI apps for merchants were introduced. You would have also faced the situation when the vendor asks for the service charge from you. It happens in a competitive market. Keeping the POS terminal is not very beneficial for small traders. However, UPI would help you do the same job without any cost incurred. As UPI operates through the smartphone, anyone can collect money without spending time and money on such machines. Also, the transaction cost is a mere 50 paisa, which is very low compared to the POS terminal.
One UPI app works for all the bank accounts
One might think that Axis Pay only supports Axis Bank accounts but the user gets to choose the UPI app they want to use and link all their Axis and Non-Axis bank accounts with them without any limitation. Be careful to choose the app that gives you maximum ease and options.
One-Stop Solution
The digital wallet has eased online payments. Opting for mobile recharges, buying rail tickets, shopping online and more have become very smooth because of the emergence of digital wallets. However, the number of such wallets is increasing by the day. Paytm, Freecharge, Flipkart, and IRCTC want you to keep the digital wallet. Naturally, it becomes a hassle to maintain more than one wallet. The UPI ends this problem as well. The payments through the UPI are as simple as payments through wallets, and only one app is enough to pay anywhere. Also, the UPI does not ask for money in advance. Rather, your money remains in the bank account and keeps earning interest. Digital wallets, on the other hand, donât give us any interest as well.
Overall, UPI offers a range of services that make it a versatile and convenient payment system for users in India. Its user-friendly interface, quick transaction times, and advanced security features have made it a popular choice for digital payments.
Unified Payments Interface is developed by the National Payments Corporation of India
Currently, UPI is a free of charge payment platform. However, there has been no official statement from the authorities regarding a permanent waiver of transaction fees. The reason why UPI is free to use is its simple and cost-effective design. NPCI has been instrumental in democratizing mobile payments in India, making UPI a preferred mode of payment for even small transactions.
Despite the lack of transaction fees, NPCI has indicated that they would keep the cost of UPI very low. They have proposed a range of charges from 0 to 50 paisa per transaction. This range of charges is intended to keep UPI cost-effective and accessible for all users, including those who make small transactions frequently.
The UPI system is hailed as one of the most successful real-time payment (RTP) systems in the world since it has been adopted in India. This innovative payment interface offers simplicity, safety, and security to P2P as well as P2M (person to merchant) transactions in India. According to 2021 reports, the UPI system of payments reinforced by the UPI bank apps helped in successfully materializing over 39 Bn financial transactions, which amounts to a business of around $940 Bn, which is again equivalent to around 31% of Indiaâs GDP. The ease of use of the UPI apps and the interoperability between them are some of the prominent reasons driving the growth of the UPI industry. The total number of transactions in a month crossed an all-time high of the $100 billion mark in October 2021.
As per a recent report, UPI continues to be the primary platform for digital payments in India, as the total number of transactions surged by 70% in 2022, reaching a staggering count of 74 billion.
The growth of UPI has transformed the digital payments landscape in India, and its impact is being felt across various industries. With its user-friendly features, low transaction costs, and growing acceptance among consumers and merchants, UPI is poised to become the de facto standard for digital payments in India in the years to come.
Unified Payments Interface (UPI) has been integrated with credit cards to provide users with a convenient and secure payment option. With this integration, users can link their credit card to their UPI ID and make payments using their credit card balance.
This integration has several benefits for users. Firstly, it eliminates the need to carry multiple payment instruments, as users can now use their credit card for UPI transactions. Secondly, it enables users to make digital payments even if they do not have sufficient funds in their bank account, as they can use their credit card balance for UPI transactions.
To link a credit card to UPI, users need to follow a few simple steps. They need to open their UPI-enabled mobile banking app, go to the add payment option, and select credit card as the payment instrument. They will then need to enter the details of their credit card, such as the card number, expiry date, and CVV. Once the details are verified, the credit card will be linked to the user’s UPI ID.
Once the credit card is linked, users can make payments using their credit card balance by selecting the credit card option on the payment screen. The payment will be processed through the credit card network, and the user’s credit card balance will be debited accordingly. Users can also view their credit card transactions and balance on the UPI app.
UPI to Reduce Declined Payment and Payment Timeouts
Users of UPI have frequently reported issues related to payment timeouts and declined payments, which poses a significant challenge for UPI transactions. To address these issues, the National Payments Corporation of India (NPCI) has set its sights on reducing declined or timed-out payments through a new feature.
The NPCI aims to minimize these issues in real-time by enabling banks to take action within 30 seconds to unblock funds that may have been caught due to failed UPI transactions. Currently, this process can take up to 24 hours, causing inconvenience and frustration for users.
This move by NPCI is expected to significantly improve the user experience of UPI transactions and further strengthen the position of UPI as the preferred digital payments platform in India. By reducing the number of declined or timed-out payments, UPI will become even more reliable and convenient for users, boosting its adoption across the country.
Growth of UPI outside of India
The UPI, which has been strictly an Indian concept, prevalent across the nation will now be also adopted by Nepal. This has made Nepal the first country to adopt the Indian UPI system, as of February 2022. The deployment of the UPI system in Nepal would be overseen by NPCI International Payments Ltd. (NIPL), the international arm of NPCI with a partnership with Gateway Payments Service (GPS) and Manam Infotech. Here GPS serves as the authorized payment system operator in Nepal whereas Manam Infotech will further aid in the deployment of the services in Nepal.
The UPI transactions have been accepted by many other countries too, after Nepal. These mobile-based fast, real-time payments, are now already happening in the UAE, Singapore, and Bhutan. France will be the latest addition to this list of countries. According to the National Payments Corporation of India (NPCI) announcement on June 17, 2022, the UPI and RuPay cards will be accepted in France soon. The NPCI’s international wing has already signed a memorandum of understanding (MoU) with the Lyra network of France for the acceptance of the UPI and RuPay across the country.
The Tata Group will soon be joining the league of the UPI apps, as per the news dated March 16, 2022. The multinational conglomerate is currently seeking clearance from the NPCI as per the reports. The Tata Group might also partner with ICICI Bank, as a private lender, via its digital commerce vertical Tata Digital, to power its UPI infrastructure. Tata Group has already applied to the NPCI to operate as TPAP (Third Party Application Providers) and is hoping it can go live soon.
According to the latest updates dated July 12, 2022, NPCI stated all of the UPI-based applications should first obtain the authorisation of the customers before they start recording their location and geographic coordinates. This system shall be followed without exception even for the customers who have already agreed to reveal their location originally while using the services, mentioned NPCI. In addition, the National Payments Corporation of India also mentioned that the UPI services of the apps shall continue even after the customers have revoked their consent for “sharing the location or geographical details for the app”. Â
Some major growth highlights of UPI are listed below:
The UPI transactions touched new heights when they crossed Rs 5 lakh crore mark in value in March 2021.
NPCI has mentioned that it will ban all gaming transactions via UPI on April 20, 2021.
Unified Payments Interface (UPI) crossed the 4 billion mark of transactions for the first time ever in October. These transactions concluded 2021 at a record high, where it recorded Rs 456 crore worth of transactions at Rs 8.26 lakh crore ($111.2 Bn).
The UPI payments recorded around 4.53 billion transactions, which is worth Rs 8.26 trillion in February 2022. It has almost doubled since the same time last year. Besides, the total value of UPI transactions was measured to be at Rs 41 trillion.
UPI recorded 6+ billion transactions in July 2022, which is the highest ever volume since it was founded in 2016. The 6.28 bn transactions that UPI platforms have seen amounted to Rs 10.62 trillion.
UPI boasts of a network of 330+ banks and an average ticket size of INR 1,730 per transaction. This makes UPI the most popular digital payment system in India.
The MoM Growth of UPI Transactions
The UPI transactions have been growing month on month. Though the UPI transactions declined slightly in June 2022, where there were Rs 586 crore transactions in contradiction with the Rs 595 crore transactions noticed in May 2022, the UPI payments have largely been quite unaffected by the RBI guidelines and the global economic scenario.
Among the duopoly that we always witness in the UPI ecosystem, of PhonePe and Google Pay, Whatsapp has risen to a record high in June 2022 with its UPI payment feature. Though WhatsApp Pay accounts for only 0.4% of the total UPI ecosystem of India, it has registered 2.3 crore transactions worth Rs 4,290.6 crore, thereby rising by 45% MoM in transaction volume and jumping 6.5X MoM in transaction count. The transaction count of Whatsapp Pay in May 2022, was only 34.8 lakhs, which were worth around Rs 294.98 crore. Â Â
Here is a table showing the MoM growth of UPI transactions in India:
Year
Total Number of Transactions
MoM Growth
2016
0.32 million
N/A
2017
915 million
2,746%
2018
17.9 billion
1,857%
2019
10.8 billion
-40.3%
2020
22.3 billion
106%
2021
43.5 billion
95.2%
2022
74 billion
70%
Crypto Payments Stopped through UPI
Some of the platforms including Mobikwik, the wallet firm of India, and the international crypto exchange, Coinbase, have been using the UPI platforms for cryptocurrency transactions. However, as per the NPCI statement, it wasn’t aware of any such happenings.
âWe are not aware of any crypto exchange using UPI,” said NPCI
in a statement on April 7, 2022, which indirectly meant a warning to all the platforms doing so and an urge to stop them from doing so. Â
UPI – Milestones
UPI transactions concluded 2021 at a record high, where it recorded Rs 456 crore transactions at Rs 8.26 lakh crore ($111.2 Bn). The UPI transactions crossed the 6 bn mark in July 2022. PhonePe, GPay and Paytm are leading the UPI game in India with 96.47% of transactions being conducted via these UPI platforms.
PhonePe has been leading the UPI space since the beginning of the year. The Bengaluru-based digital payments app witnessed an 85.5% increase in its revenue from operations, which is recorded at Rs 690 crore in FY21 from Rs 372 crore in FY20. Google Payis the next in line among the other UPI apps, as per the reports dated 15th October 2021.
A month after the launch of UPI123Pay, the UPI transactions surged by over 19% (19.6%), thereby becoming 540 cr transactions, when compared with February 2022’s 452 cr transactions. Furthermore, the transaction value also witnessed a record rise of 16.17%, which was recorded at Rs 9.60 Tn in March from the previous month’s Rs 8.26 Tn.
The real-time payment system, which was commonly referred to as the UPI, recorded 558 cr transactions, worth Rs 9.8 lakh crore in April 2022. The total transactions seen in March 2022 were 540 crores and valued at Rs 9.60 lakh crore. With total transactions for the month worth Rs 4.86 lakh crore, PhonePe stood as the UPI leader, followed by GPay, which materialised Rs 3.39 lakh crore worth of transactions. Paytm, Amazon Pay, and Whatsapp Pay, with Rs 101.65K crore, Rs 6699 crore, and Rs 242 crore, made up the league of 5 of the largest UPI apps that recorded the highest individual transaction values also in April 2022, along with being the most popular UPI apps of the month.
Fast forward to August 8, 2022 reports, PhonePe, Google Pay and Paytm command a whoping 96.47% of the UPI transactions done in the month of July 2022. Here, PhonePe led the other UPI platforms with 47.67% of transactions, followed by Google Pay’s 33.9% and Paytm’s 14.87% shares of the UPI market in transaction count. Â
UPI Transaction Count in July 2022
Launch of UPI123Pay for the Feature Phone Users
As per the recent surveys, 74 crore mobile users have smartphones while the others out of 118 crore mobile users have feature phones, which are designed for voice calling and texting. This reveals that a significant portion of Indian mobile users uses feature phones. The UPI facility has certainly extended a whole new era of convenient bank account transactions merging multiple banks under one phone number so much so that the RBI thinks that the UPI should also be extended to feature phone users. This is the reason why the Reserve Bank of India governor Shaktikanta Das, has launched UPI for feature phone users, who can use the UPI facility without the need for the internet, which will help over 400 mn feature phone users use the homegrown payments network of India. Â
UPI, which was easily available to date for smartphone owners and the users of smartphones, was available only via the complicated method of USSD for the others will now be easily accessible with the launch of UPI123Pay on March 8, 2022.
While with the earlier Unstructured Supplementary Service Data (USSD) mode, the feature phone users had to dial *99#, which brought a set of menus before and initiated transactions, the new method will be easier and more cost-effective than the USSD method, which involved numerous chargeable messages.
There are 4 different technologies that will be used in this newly christened method of UPI123Pay. These are:
IVR – The Interactive Voice Response or IVR numbers stand at the core of this process where the users can dial a number and start a secured call from their feature phones. After registering themselves, they can then start their financial transactions without the internet.
Apps – The users can also use apps on their feature phones where they can avail of a wide range of UPI functions, which will help them proceed with the kind of UPI transactions they like, excluding the scan and pay transaction, the work for which is currently in progress.
Proximity Sound-based – Another method that the feature phone users can use involves proximity sound-based technology. This technology relies on sound waves to enable networking. This eventually helps them perform contactless offline and proximity data communication on any device.
Missed calls – The final method that the feature phone users can avail of is the Indian missed call approach. In this method, the users will receive a callback from a standard number, which will let them authenticate and make their transactions smoothly.
Since the launch of UPI123Pay on March 8, 2022, more than 37K users have joined the new initiative and 21,833 successful transactions have happened via the same, as per the written reply received from the Minister of State for Finance, Bhagwat K Karad.
Real-Time Payment Dispute Resolution System
NPCI is planning to launch a real-time payment dispute resolution system for the UPI ecosystem. While announcing the upcoming rollout of the feature, NPCI MD and CEO Dilip Asbe mentioned that the all-new dispute resolution system would remove 80-90% of payment failures in real-time. This feature is all set to be rolled out in September 2022.
DigiSaathi
NPCI or the National Payments Commission of India launched DigiSaathi in India along with UPI123Pay, which is the phone’s feature for real-time payments through UPI. DigiSaathi was brought in as a 24×7 helpline for the UPI123Pay, which will provide them with information on digital payments products and services. This DigiSaathi has been further made available by the NPCI for the users on Whatsapp. DigiSaathi, when it was launched in March 2021, was only available for the users via calling at 14431 and 1800-891-3333, but now they can simply text +91-892-891-3333 to access the same helpline. Â Â
The UPI apps are the apps that are designed to follow the UPI mode transactions and are primarily designed to focus on the same. There are several UPI apps that have gained popularity in India due to their ease of use, security, and convenience.
Here are some of the most prominent UPI apps:
PhonePe – This UPI app is owned by Flipkart and has gained popularity due to its ease of use and seamless transactions. It also offers cashback and discounts on various transactions.
Google Pay – This app was formerly known as Google Tez and is one of the most popular UPI apps in India. It allows users to transfer money directly from their bank accounts and has several features such as bill payments, mobile recharges, and more.
BharatPe – BharatPe was founded in 2018 in India. The company offers a range of digital payment solutions for small and medium-sized businesses (SMBs) to accept payments from customers using UPI, debit/credit cards, and more.
BHIM – BHIM is a UPI app developed by the National Payments Corporation of India (NPCI). It allows users to transfer money between bank accounts and has features such as bill payments, balance inquiry, and more.
Amazon Pay – Amazon Pay is a digital wallet service offered by Amazon that allows users to make UPI payments, recharge their mobile phones, pay bills, and more. It also offers cashback and discounts on various transactions.
Whatsapp Pay – WhatsApp Pay was launched in India in 2020. The service allows WhatsApp users in India to send and receive money from their contacts directly within the app.
If you haven’t already started using a UPI app or a Unified Payments Portal (UPI), then it is not something really difficult.
So, if you are wondering about “how to pay using UPI?” then you need not worry!
Here first, you will be needing to register yourself and create a unique UPI ID/VPA. You can register for UPI before using the payments system with the help of any UPI-enabled bank mobile application or third-party application. After the registration is done, you can then start using UPI to send and receive payments. Here are some easy steps to guide you with the process:
Step 1: You need to install either the UPI app or your banking UPI app from Google Play Store or Apple App Store.
Step 2: Then, you need to choose your preferred language, verify your mobile number and eventually select your bank account.
Step 3: Now, you need to create your profile by typing in the basic details like your name, virtual ID, password, and more. This virtual ID that you will create here will stand as your payment address.
Step 4: Next, you will need to go to the option that says Add/Link/Manage Bank Account on the app, and proceed with linking your bank and account number with the virtual ID that you have created in the previous step.
Step 5: After that, you need to create your MPIN (Mobile Personal Identification Number), which is a security code that will be asked every single time you want to continue with a UPI transaction.
Step 6: You would now be successfully registered.
UPI – UPI App Transaction Limit
The NPCI has maintained that while there is no daily limit on the number of transactions, the maximum amount of fund transfer that is possible per day is 1 lac Rupees only. This means that you can pay multiple times to different payees every day, which makes going cash-free a reality. However, when it comes to the BHIM app money transfer limit, then the app allows you to send/receive Rs 40,000 per transaction and Rs 40,000 per day.
Some UPI apps like SBI Pay and WhatsApp Money only allow 20 transactions per day which are also enough for regular use in the everyday life of the users.
UPI – Upcoming Features
UPI Features | Authorized Transactions | Authentication
In the digital world, everyday people are solving new problems through online methods. UPI has identified the opportunities to relieve the users even further and will most likely come up with these improvements in their newer versions.
Pre-Authorized Transactions
Forgetting to pay your bills can be penalized at times and cause you unnecessary trouble. In the UPI, one can pre-authorize the app to draw money for the selected items directly from the bank account before the due dates. This system would also work for EMIs and other bill payments. One would have the ease to customize as per the needs and also put a monthly cap on the automatic payments.
Biometric Authentication
Just like your smartphone unlocks itself through your fingerprint, the UPI app is set to be âsmarterâ. This technology would work on phones which can capture fingerprints or high-quality iris images. The biometric authentication would end the need for MPIN during UPI money transfers.
Error Resolve
As of now, the UPI gives an error if the same mobile number is linked to multiple peopleâs bank accounts. Commonly, the same mobile number is registered to the account of the husband and wife. The UPI would resolve this problem in the next version of UPI.
UPI – Advantages
UPI (Unified Payments Interface) has several advantages that make it a popular mode of digital payments in India. Here are some of the key advantages of using UPI:
One of the major advantages of UPI is that it is fast, hassle-free, and the cheapest way of money transfer.
UPI is also very fast and a safe medium, while you only need a UPI ID for carrying out a transaction.
It is easy to use as it only requires a single click authentication that involves only two factors.
The user can easily link all their accounts to one ID on the UPI app.
You also have an option of scanning with a QR code to make online and offline purchases.
If the user owns a business, he/she can get payments from clients through this appâs option of collecting payments.
While making payments on UPI, the user does not have to pay any charges as it is free by the Government.
You also get exciting cashback offers.
UPI – Disadvantages
While UPI has several advantages, there are also a few potential disadvantages of UPI system. Here are some of the key drawbacks of UPI:
Sometimes, there can be delays in payments, it takes up to 48 hours for the money to get back to your bank account.
The UPI money transfer limit is currently Rs 100,000, which you can send to anyone through the mobile app.
The UPI pin only consists of four to six digits, which should be elongated for more security.
Another major disadvantage of UPI is that it is very slow in making payments sometimes, but that can be avoided by using faster internet services.
While UPI is gaining popularity in India, it may not be accessible to everyone. Users need to have a bank account and a smartphone with a compatible UPI app to use the service.
Overall, while UPI has several advantages, it is important to be aware of these potential disadvantages of UPI before using the system. By understanding the limitations of UPI, users can make informed decisions about when and how to use this payment system.
UPI – Challenges
The UPI apps and the sector, as a whole, have faced many challenges already overcoming which it is treading on the path of glory. One of the major challenges of the UPI industry was when the world witnessed one of the most dreadful diseases of modern times in the form of the coronavirus pandemic.
Due to the lockdown imposed to contain the spread of COVID-19, UPI has recorded transactions of less than one billion for the month of April after 12 months of constant growth. This is the first time in the past seven months that UPI volume went below the one billion mark. According to the National Payments Corporation of India (NPCI), UPI has registered 0.99 billion transactions amounting to Rs 1,51,140 crore(Rs 1.51 trillion).
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI-regulated entity. UPI can be used through various apps like Google Pay and PhonePe to make direct payments from one bank account to another.
The lockdown imposed by the government due to COVID-19 has caused everything to shut down or be just semi-operational. The coronavirus outbreak has devasted many sectors of human life, let it be the financial sector, industrial sector, etc. resulting in an economic crisis. Â Yet, Indiaâs success with a unified payments interface (UPI) has continued to bring essential services to consumers amid the lockdown as well.
Though the government was able to transfer the relief money through UPI in the bank accounts of crores of Indians, UPI witnessed a 20.8% drop in volume and a 26.7% fall in value as compared to the month before. As corona effect, UPI had registered a little drop in payments volume in March resulting from 1.25 billion transactions worth Rs 2,06,462 crore or Rs 2.06 trillion.
Moreover, along with UPI, NPCIâs real-time payments service IMPS has also registered a sharp fall in volume as well as the value of transactions. In April, IMPS processed 122.47 million payments worth Rs 1,21,140.79 crore which is almost half of the previous month. In the previous month i.e. March, the figure was 216.82 million transactions worth Rs 2,01,961.70 crore.
The decline is shocking as in February 2020, the RBI governor, Shaktikanta Das, highlighted that digital payments accounted for almost 97% of the daily payment system transactions in terms of volume. He also mentioned that digital payments had accelerated by 50% in terms of volume in the last five years.
However, UPI body NPCIâs CEO Dilip Asbe said, âFor the last five years, the number of transactions of UPI has been growing continuously month-on-month. But now there has been a slight drop in the volume due to the lockdown. The drop in volumes is due to near-zero restricted spends such as on e-commerce, travel, and similar online platforms. We expect volumes to pick up soon.â
Reasons behind the drop in transactions
It was anticipated that a nationwide lockdown to curb the spread of the Covid-19 pandemic would affect the digital payment volumes. However, financial experts were assured that digital payments will not get affected adversely but rather continue to grow as people would rely on digital transactions to avoid physical contact.
During the initial days of the lockdown, e-commerce, food tech, grocery as well as other online platforms were unable to operate. This led to a gradual fall in transactions but later the government allowed essential services to continue. Moreover, payments to PM-CARES via UPI have been the driving force behind UPIâs growth, which is still a 20.8% drop and these numbers are only in a few million.
Yet, transactions did not come back to normal as the government only allowed transactions on essentials. Hence, a majority of e-commerce services are still waiting for government orders. Soon, the government is likely to relax the norms for e-commerce platforms and allow them to deliver non-essential goods as well.
According to payment gateway Razorpayâs digital transaction report, for the month of April, the transactions in logistics have dropped by 96%, the travel sector has declined by 87%, food, and beverage by 68%, and groceries by 54%. In the last 30 days, transactions in cities like Ahmedabad, Mumbai, and Chennai took a hit of 43%, 32%, and 25% respectively. The report recorded transactions between when the lockdown was announced.
Razorpayâs report also stated that UPI emerged as the most popular digital payment method from March 24 to April 23, Â with 43% of the total transactions during the period. It was followed by card payments with 39% and net banking with 10%. However, compared to the previous month, transactions through UPI declined by 37%, cards by 30%, and net banking by 28%.
Steps taken to deal with the drop
Though the situation worsened throughout the lockdown, NPCI seemed prepared to handle the lockdown. CEO Dilip Asbe said that NPCI can have multiple sessions and had a spare capacity to handle the demand. In order to ensure that everything keeps running smoothly, around 5% of the NPCIâs workforce travelled to the office.
NPCI has already devised a plan for the situation with due consideration of all the factors. Asbe said that NPCI has received complaints from some businesses about delays in cheque clearing. He added that there could be issues on the last mile. “While we are in touch with banks, there might be some issues with uploading because of the lockdown. These issues might be hard to resolve now as most of the workforce isnât available now,” said he. However, Asbe also mentioned that the main objective there was to keep employees safe. If they are safe, the operations can be managed. “There are things we cannot disclose, but there is enough backup in case something goes wrong,” he added,
The government also used the UPI technology for facilitating the transfer of money in the bank accounts of beneficiaries within a day under the Pradhan Mantri Garib Kalyan Yojana (PMGKY). He further noted that besides this transfer of relief funds, the government has been using UPI for transferring monetary perks in various schemes such as Ujwala and MNREGA.
After the success of the implementation of UPI in these schemes, many state governments then relied on UPI technology to transfer funds under various schemes. Madhya Pradesh government recently transferred some relief money to the accounts of lakhs of construction workers. PM Narendra Modi had also urged people to go for digital payment to ensure safety from the infection.
Major Challenge for the Stakeholders
Indiaâs free payments system, UPI is not actually free for all. It is simply free for the users and merchants but the stakeholders have to pay a price for it. As per RBI, the costs incurred by the stakeholders in a peer-to-merchant (P2M) UPI transaction with an average order value of âš800 is nearly âš2 i.e, 0.25% of the transaction value. So, for example, if 16 lakh crore INR worth of transactions have occurred in the previous year on the UPI that means it costs roughly 4,000 crore INR ($500 million) to banks, NPCI, and the payment service provider.
UPI – Transaction Rules from January 2021
The Reserve Bank of India (RBI) has come up with the ”positive pay system” for cheque payments. This system is introduced in order to keep a check on banking fraud. According to the positive pay system, the user is required to re-confirm their key details for payments that go beyond 50,000. The user, however, has a choice to use this system.
UPI offers several benefits over other payment systems such as NEFT, RTGS, and IMPS. Here are some of the key advantages of UPI:
UPI vs NEFT
Both the platforms are known to have pros and cons. UPI facilitates instant transfer for free, whereas it can only transfer Rs 1 Lakh per day. NEFT on the other hand allows the user to transfer funds from any bank branch to any individual having an account with any other bank branch in India. A disadvantage of NEFT is that the cost is higher than UPI and it takes about 12 hours for one NEFT transfer.
UPI vs RTGS
UPI transactions are fast, simple to use, and free of charge, and are ideal for future payments, loan repayment, or credit card payments. Whereas the Real Time Gross Settlement (RTGS), is said to be of high value and needs to be processed in real-time, and is ideal for the transfer of Rs 2 lakhs and above.
UPI vs IMPS
The Immediate Payments Service (IMPS), is an instant interbank electronic fund transfer service that helps the user to access your bank account and transfer funds immediately and securely. However, with UPI the user can pay directly from a bank account to different merchants, both online and offline, without the hassle of typing your credit card details, IFSC code, or wallet passcodes.
Conclusion
UPI is a game-changing payment system that has made digital payments accessible and affordable for millions of people in India. Its ease of use, low cost, and instant transfer capabilities have made it the preferred payment option for individuals and businesses alike, and it is set to revolutionize the way people make payments in India for years to come.
With all the knowledge of UPIs, it is safe to say that people are encouraged to take a step toward going cash-free. Many other improvements are expected in the newer updates so it would not hurt to make the shift and keep up with the new digital times of managing funds.
FAQs
What is the use of UPI?
UPI or Unified Payments Interface is an instant real-time payment system created by National Payments Corporation India, which likewise implies that the Reserve Bank of India controls it.
What are the services of UPI?
The services of UPI are Cash-free functioning, Security, Real-Time Fund Transfer, a Cheaper Alternative to POS machines, and One UPI app that works for all bank accounts.
What is the Unified Payment Interface meaning?
Unified Payment Interface refers to a system that empowers the users with multiple bank accounts under a single mobile application for effective transactions. It is an all-in-one interface for payments, hence “unified”. Â Â
What are the charges for UPI?
UPI is free of charge at present. However, at the meeting of banks with NPCI on February 14, 2020, it has been decided that UPI transactions are free for up to 20 transactions per person.
What is the current UPI transfer limit?
Currently, the UPI transfer limit is set to Rs 1 lakh, as decided by the NPCI.
Can the UPI app for the current account be used?
The UPI app for current accounts can easily be used both by merchants and consumers and they work just as well as the UPI for savings accounts.
What are UPI transaction charges?
At present, the UPI transfer limit per UPI transaction is âš1 Lakh.
Is UPI safe?
Yes, UPI is safe and secure as it has a number of measures that ensure its safety.
Is a debit card necessary for UPI?
Yes, the debit card is mandatory to set the UPI pin.
How to use UPI to transfer money?
UPI can easily be used to transfer money, in which a user needs to have his/her bank account connected along with a working UPI ID and a phone number that is linked with the bank account.
No, UPI is a domestic payment system and can only be used to transfer money within India.
Which banks support UPI?
Most major banks in India support UPI, including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and others.
How does UPI work?
UPI allows users to link their bank accounts to a mobile app and make payments directly from their account. Users can transfer money to other bank accounts by using the recipient’s UPI ID or mobile number.
What should I do if my UPI transaction fails?
If your UPI transaction fails, you can try again after a few minutes. If the problem persists, you can contact your bank’s customer service for assistance.
Can I link multiple bank accounts to UPI?
Yes, you can link multiple bank accounts to UPI. You can switch between accounts while making payments or choose a default account for transactions.
Is there any disadvantages of UPI?
Yes, there are some disadvantages of UPI. It requires a stable internet connection and a smartphone to make transactions, and it may not be widely accepted in all merchants and stores.
Research by MindGym into business performances during the global recession between 2007 and 2009 found that only 9% of companies performed better than their business rivals in terms of sales and recording profits. The report put forth the supposition that the success of these companies was attributable to a culture of high performance allowing them to maximize productivity and drive innovation.
By the end of 2022, business leaders were setting their priorities and planning for the year ahead and beyond. A cornerstone for this planning included setting a high-performance culture that improves productivity, increases profits, and accounts for happier employees.
Organizational culture is a cumulative effect of what people do and how they do it and its effects on the companyâs performance. It is a set of values, beliefs, attitudes, philosophies, and practices followed by organizations that guide the actions and behaviors of the employees. High performance is a reference to individuals, teams, or organizations as a whole, who are laser-focused on their goals. They are able to achieve better results through a common vision, collaboration, skills, and resilience.
Hence, high-performance culture can be defined as a working style that helps employees thrive, take ownership, and become accountable by using available tools and resources to achieve high goals.
How to create a high performance culture | Andrew Sillitoe | TEDxRoyalTunbridgeWells
Ways to Create High-Performance Culture
For many years now, there has been rising awareness about building an organizational culture that is conducive to happier employees leading to high productivity. However, the post-pandemic world has seen a tectonic shift in working styles and environments as employees shuffle between working from home and working from the office. The hybrid style of working has further stressed the need for organizations to build a uniform and crisp culture that ensures its sanctity and relevance. Creating a high-performance culture has become a key business strategy to ensure a thriving business in 2023 and beyond.
There is no one defined way to create a high-performance culture as different business structures require different approaches. However, there are some common hallmarks and approaches.
Defining Behavioral Patterns
Acceptable behavioral patterns that are tailor-made for a particular business need to be clearly defined and communicated. This allows for every employee to have an understanding of a shared vocabulary that mobilizes change and also helps the leadership to monitor the progress in the cultural shift.
Reframe Mindsets
People from different backgrounds, cultures, and thought processes come together in the workplace. However, the atmosphere of the organization has a profound effect on the beliefs and value systems of its employees. Hence, it is the organization’s responsibility to send the right behavioral cues through every act, be it a performance review or the way a meeting is conducted. It is these cues that are sent from the leadership that builds a culture of high performance by reframing the mindsets of all employees.
Utilize Major Business Initiatives to Drive Desired Culture
Highlighting behaviors and mindsets of employees that deliver the most business value becomes self-reinforcing. It ensures that the desired behaviors and values take hold by generating a magnetic pull as people take cues from their leader’s signals. This also accelerates the momentum of a culture that values high performance.
Creating a Coherent Employee Experience
An organization that creates and executes a program to ensure a coherent employee experience speeds the process of transition to a high-performance culture. This means that there is value added to the employee through a compelling change story, leadership role modeling, the opportunity for skill building, and formal changes to processes, systems, and incentives that increase employee clarity.
Create Opportunities for Personal Growth and Overcome Personal Barriers
The equation is simple. For the organizational culture to change, its people must change. This can be achieved by designing a program that allows each individual to recognize their own behavior patterns as well as what requires a change.
Make the Journey Employee-Centric
After all, it is the employees of any organization that builds and sustain the organizational culture. While it is true that cultural change moves top-down, change efforts have to be employee-centric. The more employees see value in certain behaviors, the easier will be to change to building a high-performance culture.
A high-performance culture within an organization is roundly beneficial to all, be it the leadership or the employees.
Increased Productivity
It creates an enjoyable, healthy working space that encourages engaged, highly functional, and consistent employees. It positively impacts the quality and performance of the workforce and encourages them to explore newer ideas in their pursuit of success.
Builds Brand Identity
An organization’s interactions within and outside the company build its reputation and image. Companies with a strong brand identity tend to attract more business
Attracts the Right Talent
A high-performance culture that strengthens employees and their work resulting in satisfied staff attracts the right talent pool of workers.
Lowers Attrition Rate
Organizations that have a strong cultural hold of high-performance result in employees who feel valued and respected. This leads to satisfied and happy employees automatically lowering the attrition rate.
Healthy Working Environment
A strong organizational culture improves work-flows as well as helps in overcoming any biases and ambiguity. It eases the decision-making process. Well-informed team members are motivated to perform at their best. A high-performance culture promotes a uniform work structure to create a healthy working environment.
Conclusion
In the post-pandemic world, employees want to work with businesses that are open, inclusive, and customer-centric. They also want an organization that has a strong culture in place. Going into the future, creating a high-performance culture within the organization has assumed critical importance to ensure continued success and relevance for any business.
FAQs
What is High-Performance culture?
High-performance culture can be defined as a working style that helps employees thrive, take ownership, and become accountable by using available tools and resources to achieve high goals.
What are the ways to create High-Performance culture in an organization?
Following are a few ways through which High-Performance culture can be attained in an organization-
Defining Behavioral Patterns
Reframe Mindsets
Utilize Major Business Initiatives to Drive Desired Culture
Creating a Coherent Employee Experience
Create Opportunities for Personal Growth and Overcome Personal Barriers
Make the Journey Employee-Centric
What are the advantages of having High-Performance culture within an organization?
Below are the advantages of having High-Performance culture within an organization-
Generative AI has created quite a buzz lately, and people are curious. Since OpenAI launched ChatGPT in November last year, it has got 100 million users putting it to good use. And believe it or not, it is doing a pretty good job for the intended purpose. As a generative AI Chatbot trained on a massive dataset of dialogue-based texts and codes, OpenAIâs ChatGPT has captured the attention of literally everyone who is even slightly keeping up tabs on new tech, and it has got 100m users to prove my point.
So, what is generative AI, how do people use it to search queries, and how does this generative AI search work?
Well, first thing first. Generative AI is a kind of machine learning (ML) that uses algorithms to create new data from existing datasets of texts, audio, visuals, and codes, that can be used for various tasks such as image generation, text summarization, audio and video generation, and natural language processing. ChatGPT is also a generative AI-based chatbot, capable of having human-like conversations, but way more powerful and efficient than Siri and Google Assistant.
At present, OpenAIâs ChatGPT is freely available for people to try out the limited capabilities of this generative AI-based conversational toolâ but its newer and upgraded version, ChatGPT Plus, is not free. Users can still take a USD 20 subscription plan to use the new GPT-4 (a large language model) based- ChatGPT Plus, which offers larger context as input and can have more extensive and more creative content than its predecessor.
Microsoft also integrated OpenAIâs GPT-4 large language model customized specifically for search in its Bing Search and launched it as the âNew Bingâ. In a blog post, Microsoft says,
âNew AI Bing is an AI-enhanced web search experience that can provide you with better search, more complete answers, a new chat experience and the ability to generate content.ââ
Microsoft Chairman CEO, Mr. Satya Nadella, on the day of its launch, said that AI would fundamentally change every software category, starting with the largest of all being the search category. He added, âToday, weâre launching Bing and Edge powered by AI copilot and chat, to help people get more from search and the web.ââ
Although, the new Bing search is not yet available for everybody to use as Microsoft is yet to roll it out for everyone.
For a moment, youâd wonder where is Googleâ the company which ruled web searches over the past two decades. Well, Google is not behind in this Generative AI race. Itâs working on its very own Generative AI chatbot named Bardâ based on Googleâs large language model, LaMDA (Language Model for Dialogue Applications). Google announced it in its 2021 annual Google I/O meet.
Google CEO Sunder Pichai on February 6, one day before the launch of Microsoftâs new Bing AI, introduced Bard in a blog post. âBard seeks to combine the breadth of the worldâs knowledge with the power, intelligence, and creativity of our large language modelsâ, said Mr. Pichai.
Google says that it aims to bring the benefits of AI into our everyday products, and it isnât in the race for AI first. Perhaps that is why Google is behind Microsoft and playing catch up, but there are other participants in this AI race tool. Apple Inc. is also working on its own AI model, and so is IBM.
The Generative AI Search
Search, as we know it, is simply opening our favorite web browser and search engineâ Bing, Yahoo, or Google, and typing in the query we want to look for. Sometimes itâs not even a query. We simply type in the word âCatâ, and the search engine comes up with a list of websites that it believes have the answer to our questions (the input) accurately. Well, that is how keyword-based traditional search works.
The generative AI search, on the other hand, is a relatively new technology that uses machine learning and natural language processing to search for information. It works by analyzing large amounts of data and generating new, relevant results based on the input provided. The process involves gathering data from multiple sources such as websites, databases, or social media platforms like Twitter or Facebook. This data is then analyzed using algorithms designed particularly for the task at handâin this case, digging through vast amounts of information quickly and accurately finding what you are looking forâ all without you having manually look through each piece.
The AI-based algorithm looks at patterns in the text that indicate specific topics are related, thus, helping to narrow down your results even further before presenting them back out again as an organized list with all relevant options included within it.
The next step involves taking those generated results and running them against various other sources, such as images or videos if necessary; this allows you to get a better understanding of what exactly was found during your initial query process â giving users access not only textual but also visual content when searching online too.
Finally, once everything has been collected together into one place, then sort these items according to their relevance level – making sure that only the most relevant pieces appear first, and the lesser ones stay towards the bottom part where nobody would bother looking anyway all this while presenting it to you in a human-like output. Well, thatâs the gist of it.
You must understand that the algorithm searches through all kinds of data, be it text, image, audio, or video because generative AI is not just limited to text.
Ultimately generative AI searches provide you with an efficient way of finding answers quickly regardless you know anything about the topic beforehand or not â allowing you to save time (well, time is money!) while still getting quality output every single time.
What are Generative AI models?
How Generative AI Search Differs from Traditional Web Search
Google has, time and again, emphasized that it uses AI (BERT, MUM) to give you quick and accurate results, but generative AI search is quite different from traditional searching. For one, it uses deep learning models instead of keyword-based indexing systems like those used by most popular web browsers today.
Deep learning models can understand complex relationships between data points within a dataset, allowing them to skillfully understand what users are searching for when they enter their queries into the system. For example, if someone were searching for âItalian restaurants near meâ on Google or Bing, these services would typically return listings based solely on keywords entered by the user without considering any additional factors such as location or cuisine preferenceâbut with an advanced generative AI system in place these criteria could be taken into account as well resulting in much more accurate recommendations are tailored specifically to meet per needs.
Google and ChatGPT
Generative AI Search also allows you to enhance your search results through conversation and generate the relevant answers in a human-like output while providing you with link(s) to the resources it compiled the results from. Another advantage that comes with using an advanced generative AI system over conventional ones is its ability to identify patterns amongst the vast amount of data and produce the most relevant results without requiring you to put too much effort or time into researching your query firsthand.
Generative AI searches can generate more relevant results than regular keyword-based searches because of their ability to understand natural language queries and return personalized recommendations based on user preferences. Generative AI search would certainly revolutionize web search, but what matters most is accurate and unbiased AI, as the results can only be as good as the training data set. While Microsoft has already launched its New Bing AI and Chat with its enhanced edge web browser, Google is not rushing into the AI race and improving its generative AI-based chatbot Bard.
FAQs
What is Generative AI?
Generative AI is a kind of machine learning (ML) that uses algorithms to create new data from existing datasets of texts, audio, visuals, and codes, that can be used for various tasks such as image generation, text summarization, audio and video generation, and natural language processing.
How does Generative AI search work?
The generative AI search, on the other hand, is a relatively new technology that uses machine learning and natural language processing to search for information.
It is not the strongest of the species that survives, nor the most intelligent that outlives. It is the one that is the most adaptable to change. That is what Charles Darwin, the nineteenth-century naturalist had said.
It essentially means that if you are capable of adapting yourself to changing circumstances around you, upskilling yourself, and beating your competitors to the punch, you will most probably survive the generative AI that most people see as replacing their jobs.
Generative artificial intelligence (AI) is a type of machine learning that uses algorithms to create new data, such as text, images, or audio, by learning patterns from existing data (or data sets). Itâs an AI tool capable of using input data to self-learn and produce better text, images, audio, etc. Well, I wouldnât say better, but it is pretty good, and is still in development, still learning. Companies like Google Inc., OpenAI, Midjourney Inc., Microsoft Inc., etc. are heavily investing in Artificial intelligence, and it remains to be seen who makes it more interesting, or say, intelligent.
Why should it have your attention?
There are plenty of reasons for you to be interested in generative AI, the most prominent one being its creative potential. It can create new content based on its input or practicing data set. It is evolving every day, and its ability to come up with more creative content, be it texts, images, or audio, will only get better with time. But that is not all.
It has the potential to analyze its responses. It can self-learn. Various generative AI models use multiple techniquesâ neural networks, deep learning, and reinforcement learning to learn the patterns and relationships in the data. This will open new dimensions in predictive analytics and how businesses can carry out their day-to-day operations.
What are the chances that Generative AI will replace you at work?
When it comes to technology, there are plenty of reports that suggest that technology has, since 1981, displaced workers faster than it has created jobs. Of course, there is significant uncertainty around the future of generative AI as it is still developing. But its ability to produce content that is literally indistinguishable from original/human-made content is concerning for many, and it should be. But on the same note, it is also true that workforce automation and the resulting job losses will be compensated by creating new jobs.
A report by investment bank Goldman Sachs says that Artificial Intelligence could replace around 300m full-time jobs. It further states that if generative AI delivers its capabilities as promised, the labor market will face substantial disruption.
So, the chances of generative AI replacing jobs are pretty high, but not all jobsâ it cannot cook, for now, so we can rule that out.
What kind of jobs Generative AI will replace?
The future of AIâs role in the job market can broadly be put into two categories considering the impact of generative AI in the near- future. Firstly, AI will complement the employeesâ work and then will replace the employees. The promised generative AI capabilities are truly charmingâ a charm that is tempting to companies. Companies always look for ways to reduce labor costs and enhance productivity, and generative AI will provide them with such opportunities.
The fourth industrial revolutionâ industry 4.0â is about the internet and AI. Combining the Internet of Things (IoT), cloud computing, simulation, additive manufacturing, predictive analytics, Machine Learning (ML), and Big Data will set the course of Industry 4.0. It is also true that not all businesses are using AI as of now, and most works are only partially exposed to artificial intelligence and automation. With AI adoption, companies will get an opportunity to apply some of their freed-up capacity toward highly productive activities and enhance output.
So, it is more likely that replaced workers will be re-employed with improved, higher levels of productivity at hand, as well as new emerging job opportunities. The automation-led growth will also create a demand for labor.
The Goldman Sachs report also highlights two of the most influential Generative AI abilities that will have macroeconomic effects, one being its ability to produce new content that is indistinguishable from the original human-created output and the second being its ability to break down the barriers between machines and humans. Both of these will have a substantial effect on employees and employers around the world.
People who will be most affected by generative AI are the ones whose work involves web scraping to gather relevant data, preparing a clean data set, making sense of data, data processing, data analyzing, making people understand that information, keeping records or documentation, etc. Additionally, generative AI will positively affect the job market in the field of Content writing and editing, Journalism, Law, graphics designing and music, customer services, data entry, administration, bookkeeping, taxing, insurance and loan approval, etc. Chat GPT and Bard will enable even intermediate-skilled people to write articles and essays unless there is significant demand for such work, journalists and content writers will face severe competition.
Will ChatGPT Take Your Job?
The silver lining for Content Writers
Recently I came across a few articles published by CNETâ a tech news siteâ that used AI to write finance articles like âWhat is compound interestâ, âDoes a home equity loan affect private mortgage insurance?â, and many more. It used SEO-friendly keywords, and Google allowed advertisements on these pages. Futurism highlighted this factâ CNET had been quietly publishing AI-generated articles since November last year without any formal announcement. CNET acknowledged this fact and said that it was not a big dealâ Â the readers couldn’t understand if the article was written by AI or a human. But the main problem is AI misrepresenting facts. Many articles contained false information, and CNET had to revise them.
The authorship of the articles isnât instantly clear when you read the articles, but you will find something like this written in the dropdown description under staff:
“This article was generated using automated technology and thoroughly edited and fact-checked by an editor on our editorial staff.”
But CNET is not the first one to do this. Associated Press also started using AI in 2015. Americaâs oldest, 24h news agency produced 10 times more articles (3000 articles in a quarter) than it used to by using the automation technology at Automated Insights, a firm known for AI and ârobot journalismâ.
The silver lining, however, is that AI is still evolving and is not perfect yet. It still makes mistakes on many fundamental topicsâ finance, polity, and politics. Many people have already pointed out the inability of ChatGPT to write unbiased content when it comes to the Democrats and the Republicans, Donald Trump, and Joe Biden, and even religious figures.
So, as long as you are a creative, rational, objective content writer or journalist, your job is safe, and you will stand out. Undoubtedly, generative AI will replace some folks at work, but it will also provide a massive opportunity for you to reinvent how you work and hopefully complement your work with added creativity and accuracy. As AI and deep learning mature over time, business productivity will correspondingly improve, resulting in more labor demand and new job opportunities.
FAQs
What is Generative AI?
Generative artificial intelligence (AI) is a type of machine learning that uses algorithms to create new data, such as text, images, or audio, by learning patterns from existing data (or data sets).
In which fields may Generative AI affect jobs?
Generative AI will positively affect the job market in the field of Content writing and editing, Journalism, Law, graphics designing and music, customer services, data entry, administration, bookkeeping, taxing, insurance and loan approval, etc.
âAI will fundamentally change every software category, starting with the largest category of all â search,â – Satya Nadella, Chairman and CEO, Microsoft.
It is no secret that Microsoftâs Bing search engine has always been several steps behind Google’s Search Engine. Somehow it did not click with internet users. One might blame the Bing Search interface or how it brings up results, but you know thatâs not it. I mean, Forbes tried to sum it up as, âGoogle was able to attract much better talent due to its reputation of being a more innovative and a more developer-friendly company, and because of its market position. Bing suffered from the anti-Microsoft sentiment among developers and was unable to attract a similar quality of talent.â Additionally, Google has been around for a longer time and has done incredibly well with its search algorithm.
However, the wind of change has finally taken a turn for the better- to an age of Artificial intelligence (AI) and more, particularly, Natural language Processing (NLP) and Machine Learning (ML). In an era when Elon Musk and Bill Gates (Co-founder, Microsoft) are significantly investing in ChatGPT, a conversational AI chatbot that is capable of producing long contextual paragraphs on any given topic (provided it is not about criticizing a certain messenger or Joe Biden or praising Donald Trump), whereas Google Inc. is experimenting with Bard.
Sharing his views on language and AI, Google CEO Sundar Pichai once said,
“Language is core to who we are as human beings. Itâs how we understand the world, express ourselves, and communicate with others. And yet, only a fraction of the worldâs languages have a digital presence today. This gap poses a threat to preserving cultural diversity, as well as to the development of AI.”
This bard is quite different than Celtic poets and composers, known for singing praises for old English kings in the old English era. This Bard is American, based on Googleâs LaMDA (Language Model for Dialogue Applications), performs functions just as ChatGPT but relies on the Google Search engine to produce accurate results (it tries), and it is still learning.
Googleâs Bard is âyour creative and helpful collaborator, here to supercharge your imagination, boost your productivity, and bring your ideas to life.”
So, the obvious question is who wins when Microsoft and Google, two business giants have come to take your attention, your time, and probably your money (they say time is money, so letâs go with that)? How do you decide the winner in this modern clash of titans? What parameters should be taken into consideration?
The Clash of Titans: Bard vs. Bing chat
When I asked Bard that I wanted to compare these two servicesâ Google’s Bard and Microsoft’s Bing Chatâ Â what do you think it said?
Here is what it came up with:
âBard is based on Google’s LaMDA language model, while Bing Chat is based on OpenAI’s GPT-4 language model. LaMDA is a newer model than GPT-4, and it is trained on a larger dataset of text and code. This means that Bard may be able to generate more creative and informative text than Bing Chat.
Bard also offers three different drafts of the same response, while Bing Chat only offers one. This gives you more control over the final response, and it can help you to get the information you need more quicklyâ.
Google’s Bard
Microsoftâs Bing Chat also performed well when I asked the same question:
Well, Googleâs Bard replies like ChatGPT (which failed to respond, as seen above). It produces texts, answering your questions with the help of Googleâs âlarger dataset of text and codeââ but Microsoftâs Bing Chat answered with the help of resources available on the internet, paragraphically, along with hyperlinks of the websitesâ it compiled the results from.
Who wins this Clash of Titans?
Well, neither Perseus nor Hades!
Google’s Bard is powered by LaMDA, a language model developed by Google AI, and as a language model, it is still learning. Though it is presumed to provide better results because it uses Googleâs large dataset, Microsoft’s Bing Chat, powered by GPT-4, a language model developed by OpenAI, is no less. It has the unique style of producing answers with hyperlinks to web resources which is quite helpful in determining the integrity of the results.
It still does not answer the question!
So, I guess, for now, it depends on individual choices and needs. Microsoft or Google canât force you to use their search engines (or Bard/Bing AI), and you are free to use any of these. Whether youâre a conservative or a (woke) liberal, a humanist or a feminist, a white cis-male or a trans-person of colorâ you are free to make your own choice.
The AI Assistant Battle! (2023)
But what about the future? Who wins this battle in the next few years?
Since both Google Inc. and Microsoft Inc. are investing heavily in AI research and development, and both companies will continue to make significant progress in the coming years, as one can presume, ultimately, the winner of the AI battle will depend on which company can develop the most powerful and user-friendly AI technology.
It would probably depend on the capital each company is willing to invest in AI research, its development, and the talent each company can attract to its AI team.
Both Bard and Bing Chat are performing well. Bard hasnât been yet launched here in India; however, you can use Bing Chat.
FAQs
Which AI Chatbot is better, Google’s Bard or Microsoft’s Bing Chat?
For now, it depends on individual choices and needs, and you are free to use any of these. Both Bard and Bing Chat are performing well. Bard hasnât been yet launched here in India; however, you can use Bing Chat.
How do Google’s Bard and Microsoft’s Bing Chat reply to a query?
Google’s Bard is powered by LaMDA, a language model developed by Google AI, and as a language model, it is still learning. Though it is presumed to provide better results because it uses Googleâs large dataset, Microsoft’s Bing Chat, powered by GPT-4, a language model developed by OpenAI, is no less. It has the unique style of producing answers with hyperlinks to web resources which is quite helpful in determining the integrity of the results.
Aishani Biswas
