UPDATE: Replit CEO Amjad Masad has just stated that the economy is on the brink of a major transformation through “functional AGI,” rather than the elusive true AGI. During an episode of the a16z podcast released on September 28, 2023, Masad emphasized that while many tech giants chase true AGI, the practical application of AI is already reshaping industries.
Masad argues that “functional AGI”—AI capable of learning from real-world data and performing tasks independently—can automate significant portions of the current workforce. “We can get to functional AGI,” he asserted, highlighting its immediate potential to improve efficiency across various sectors.
The CEO expressed skepticism about the timeline for achieving true AGI, which would require human-like consciousness and adaptability. He stated, “I’m bearish on true AGI breakthrough,” suggesting that the focus on perfection may hinder valuable advancements that could be made with existing technology.
This perspective comes amid growing criticism of the AGI race among major players like OpenAI, Google, Meta, and Microsoft, who continue to invest heavily in the pursuit of true AGI. However, experts are increasingly questioning whether such a goal is realistic. Notably, AI leader Gary Marcus recently argued that “nobody with intellectual integrity should still believe that pure scaling will get us to AGI.”
Masad’s comments resonate as the tech community grapples with the reality of AI developments. The recent release of OpenAI’s GPT-5 was met with mixed reactions, failing to deliver on the AGI hype. OpenAI CEO Sam Altman acknowledged that while GPT-5 demonstrates some general intelligence, it still lacks critical components of true AGI.
Masad warned that the industry may be trapped in a “local maximum trap,” optimizing existing models instead of pursuing groundbreaking innovations. “Maybe the general problem is actually not within our lifetimes,” he mentioned, leaving the future of AGI uncertain.
As the debate continues, Masad’s insights suggest a pivot towards leveraging functional AGI for immediate economic benefits. He believes that we can automate a significant portion of labor, which will have profound implications for society and the workforce.
The urgency of these developments cannot be overstated. As AI technology evolves, its impact on the global economy is becoming more pronounced. The conversation around functional AGI is intensifying, and stakeholders across industries must stay informed to adapt to these changes.
What’s next? Observers will be closely watching how companies respond to Masad’s insights and whether they will shift their focus towards practical AI solutions that can be deployed today. The pursuit of true AGI may continue, but the rise of functional AGI could redefine the landscape of work and productivity as we know it.
Stay tuned for more updates on this rapidly developing story.
