PPPPerspectives from SXSW: (Four Ps #232)
The Four Core Themes at SxSW 2024, and Where We Go From Here
Apologies for the delay in getting this Four Ps into your inboxes and social feeds -- I know how eagerly you anticipate these every other week.
But SxSW was a frenzied fantasy full of forums, festivities, friends, food, fitness (all the walking!), funding, freebies (schwag!) and fun -- then I had jetted out to the Bay Area for a 24-hour sprint, and just now back on the redeye. So please also forgive any typoes and mistseps.
This year's key SxSW topics and takeaways neatly fall into four themes. Lucky for me, and great for you! So let's dig in, like me over the past four days, with too many breakfast burritos.
THE PRACTICAL: AI as the Great Divide of our Time (in Austin)
As discussed in my weekly social video series, "What I Learned" this week, the discourse surrounding AI at the festival was as diverse as the festival itself, encapsulating a wide range of topics, technologies, and debates. From the potential rivalry between new AI models to broader contemplations on AI as a force for societal good or a precursor to doom, the discussions at SXSW mirrored the global conversation—intense, divided, and filled with a mix of rational analysis and emotional response.
Amid this whirlwind of speculation and uncertainty about AI’s trajectory, opinions are as varied as preferences for Austin’s best BBQ joints. Yet, the consensus leans towards the unknown, acknowledging the speculative nature of AI's future impact. One point on which everyone seemed to align is that while Generative AI may have a smaller impact on many industries, it's already disrupting marketing and advertising.
GenAI is a type of artificial intelligence used to create new content, such as text, images, and music. However, there were also concerns about the potential negative impacts of generative AI, such as the spread of misinformation and the displacement of human workers.
People were excited about Anthropic's introduction of Claude 3, its latest AI chatbot, claiming superior performance over OpenAI's GPT-4. The new model includes multimodal capabilities, analyzing both text and images, with improved performance in analysis, forecasting, and multi-step instruction handling. Claude 3's expanded context window matches that of Google's Gemini 1.5 Pro, allowing for richer responses. Despite its advancements, Claude 3 faces challenges such as bias and hallucinations and lacks web search capabilities. Anthropic plans frequent updates and aims to enhance Claude 3's interactive and agentive capabilities. This development suggests that as AI technology evolves, loyalty to platforms like ChatGPT may wane in favor of more advanced models like Claude 3.
My key takeaway is that AI will be a tool for augmenting human capabilities rather than replacing them, potentially ushering in a new era of efficiency and creativity in fields like data management and design. Ethical considerations will also be prevalent, highlighting the nascent stage of AI development and the importance of hands-on experimentation and ethical frameworks.
As SXSW wraps up, the overarching message is clear: AI is a journey fraught with uncertainties and opportunities, urging a collective approach to exploration, ethical considerations, and open-minded discourse about its role in shaping our future.
THE PERSONAL: Sustainability, Climate Change & Health
While not always the most glamorous or attention-grabbing topics, I was pleasantly surprised to see how prevalent these issues, so near and dear to my heart, were this weekend. For all the big brands, media and tech platforms, and startups that go all out to put on a show at SXSW, the important topics related to the health of our planet, society, bodies, and brains often go under the radar.
Between panels on mental health, gun safety, and climate tech, the sense of urgency among many attendees about the need to take action was palpable. The gun violence crisis was passionately articulated by Dr. Chethan Satya of Northwell Health and Dr. Benjamin Hoffman, both on the main stages and in side sessions.
There were plenty of panels on topics such as renewable energy, green technology, sustainable business practices, and environmental responsibility. It was clear that businesses and organizations are increasingly recognizing the importance of sustainability and are taking steps to reduce their environmental impact. I attended at least three panels where a leader from Headspace discussed brand partnerships and increased adoption.
And the subject of 'evolving work' was inescapable. Remote vs. hybrid vs. in-person work came up constantly, as did investments in professional development. With the aforementioned rise of automation and artificial intelligence rapidly changing the job market and continuing to reshape the workforce overall, there was a lot of discussion about the skills and training that will be needed in the future. Experts emphasized the importance of lifelong learning, upskilling, reskilling, and adaptability in order to thrive in the new economy. I expect education and professional development to rapidly accelerate in the next few years.
All of this is to say that many of us are struggling with some or many of these topics, and more. The openness with which friends, acquaintances, and even new contacts spoke about personal challenges, anxiety, uncertainty, confusion, and even fear was both stark and sadly refreshing. Let's keep talking, because it's both better than the alternative (not talking) and is always the first step towards addressing and correcting these issues.
THE PROFESSIONAL: Metaverse, Web3, & Brands’ Futures
The Web3 resurgence continues; gaming is more popular, and brands are jumping back in full force. Well, maybe that's two truths and a lie. While gaming and finance are the current belles of the Metaverse and Web3 scenes respectively, brands are still slow to move more investment and strategic resources into these re-emerging tech opportunities.
This is why the significant refocus on these topics in the topical conversation is somewhat surprising. Metaverse and Web3 were two of the most talked-about topics at SXSW this year, hands down. Participants see a world that goes beyond gaming, to the gamification of consumer engagement and brand loyalty.
While some may argue this is just the second upcycle towards a long-term plateau in Gartner's Hype Cycle model theory, there are several factors fueling this return to the blockchain gas pump. Bitcoin reached an all-time high of $68,900 last week, despite a previous industry-wide crypto meltdown that saw significant losses and the criminal convictions of industry figures like Sam Bankman-Fried and Changpeng Zhao.
Bitcoin’s price movement is influenced by macroeconomic trends, behaving like a speculative asset, with its recent surge linked to the Federal Reserve’s indication of interest rate cuts and improving economic conditions. Key regulatory victories have boosted Bitcoin’s rise, particularly judicial decisions favoring crypto companies like Ripple and the approval of Bitcoin ETFs, which have attracted mainstream institutional investors.
The current crypto explosion is primarily driven by traditional institutions like BlackRock, as opposed to the previous bull run led by small-scale everyday investors, signaling a shift in the market’s dynamics. Critics argue that the involvement of established financial firms in the crypto market provides a false sense of legitimacy and opens up a large pool of mainstream investors to potential risks.
So, what about NFTs? Glad you asked. The recent sale of CryptoPunk #3100 for $16 million demonstrates that the Web3 ecosystem, particularly the NFT market, is not only alive but thriving. This sale, the second-most expensive in the series, shows renewed interest in NFTs, suggesting that Web3 technologies continue to hold strong appeal and potential for innovation and investment long-term.
Now, it's up to the creative, strategic, and innovation leads of brands to develop practical and beneficial use cases, learning from the speculative bust of two years ago.
THE POLITICAL: Talkin' TikTok Over Tacos
It's hard to believe that this one falls under 'political,' but it appears there is at least one topic on which most elected officials, regardless of party, can agree. And that is the threat TikTok poses to U.S. national interests.
While I've very publicly railed against the damage TikTok is doing to society on a moral and emotional level, especially with kids and teens, the issue that seems to have united Washington is the Chinese influence.
Last week, the House Energy & Commerce Committee voted unanimously (50-0) to ban the app. The legislation now advances to Congress, which would force ByteDance, TikTok's parent company, to divest its ownership of the app. Lawmakers criticized the platform for spreading misinformation while the Biden administration faced questions about its stance on TikTok, given its use of the app for campaign purposes. President Biden said he would sign the bill.
At SXSW, many of my friends and conversational partners were more amused by this turn of events compared to the topics mentioned above. Yet, the controversy surrounding TikTok and its potential ban in the U.S. due to national security concerns related to its Chinese ownership was absolutely one of the most discussed topics overall. The conversations in Austin reflected the broader national conversation on the balance between security risks and the platform's popularity, especially among younger generations.
All of which is to say that I expect something to happen with ByteDance before the government of the U.S. has to act. The existential threat is too great. TikTok launched a campaign warning its users of the potential ban, leading to a flood of calls to Congress from concerned constituents.
On the other hand, a very prominent tech and media leader in my professional circle sent out an email blast over the weekend, essentially saying he believes it's crucial for us to support the recent move to prohibit TikTok in the United States. While he strongly supports freedom of speech, he says, TikTok's dominance in the U.S. and its ties to the Chinese Communist Party necessitate this ban to safeguard our communication infrastructure. He wants us all to contribute our thoughts and influence the outcome.
Now I hate to say 'I told you so,' (see: Week 5 what I learned - I am not alone), but anyone who hasn’t been preparing for this possibility by diversifying creative for other channels was short-sighted, foolish, and clearly not reading the Four Ps.
THE PODCAST:
In the week leading up to SxSW, we chatted with Axios media deals reporter Kerry Flynn for “The Snarketing Podcast.”
We learned about:
Her favorite mid-day conference "snack"
Leveraging social media platforms and staying updated with industry news.
How to save the news/media industry. (Hint: You can help.)
Tips for content creators on producing and distributing work successfully.
A day in the life of a media deals reporter, and her preference for asking rather than answering questions.
Balancing work, networking, and her love for dogs.
Exploring the Meta Ray-Ban Sunglasses and the impact of tech gadgets on everyday life.
Building a successful media company, the role of AI in the future, and the importance of expertise in media. 🌟
Enjoy, and see you again in Austin next year. Or back in your inboxes in a couple of weeks…