Get Ready for a Transformational Change Like We’ve Never Experienced

Greg Twemlow
5 min readApr 26, 2024
DALL·E 2024–04–26 14.39.02 — Create a minimalist image that subtly conveys a slightly foreboding atmosphere. The image should symbolize the transformation “AI as the OS” will enable. By Greg Twemlow

The concept of AI as an Operating System (AI as OS) has profound implications across all sectors and levels of society, from individual users to large organizations. Understanding and preparing for these impacts is crucial for people in general, company leadership, Boards of Directors, and software companies.

Microsoft, META, and Apple released major AI updates this week, and all three support my proposition that we will soon be using devices powered by an on-device AI Operating System.

This article focuses on Microsoft’s Phi-3 Small Language Model release; however, it applies equally to the META and Apple releases.

Analyzing Microsoft’s introduction of Phi-3 within the context of my original concept of “AI as the Operating System,” it’s evident that the development of such sophisticated AI models underscores the trajectory towards AI deeply integrated into operating systems and the broader technology ecosystem.

Here are my thoughts on the implications and alignment with the “AI as OS” concept:

Strategic Integration of AI Models Like Phi-3

1. Advanced Capabilities at Small Scale

  • Phi-3 models, particularly the Phi-3-mini, demonstrate significant advancements in language, reasoning, coding, and mathematical benchmarks at smaller sizes. This indicates a move towards highly efficient AI that operates seamlessly within various device platforms, potentially integrating directly into an operating system environment where resource efficiency and fast response times are crucial.

2. Expanded Contextual Understanding

  • With support for up to 128K tokens, Phi-3-mini exemplifies the growing capability of AI to handle extensive contextual information. This aligns with an AI-driven OS that can process and integrate large amounts of data across applications and services within an ecosystem, enhancing user interaction and system responsiveness.

3. Cross-Platform Optimization

  • The optimization of Phi-3 for diverse hardware platforms, including GPUs, CPUs, and mobile devices, and its deployment as a microservice mirrors the versatility required for an AI OS. This adaptability ensures that AI functionalities can be embedded deeply into various user interfaces and operational frameworks, heralding a shift towards more integrated and ubiquitous AI solutions.

4. Instruction-Tuned for Natural Interaction

  • Phi-3’s instruction tuning to follow human-like communication is a step towards creating AI that users can interact with more naturally and effectively within an operating system. This development is crucial for evolving AI interfaces that are intuitive and user-friendly, critical traits for any system aiming to function as an OS.

Implications for AI as the Operating System

Transformation of User Experience

  • As AI models like Phi-3 become more integrated and capable, the concept of AI as an OS becomes more viable. AI can manage complex tasks, understand extensive contexts, and interact conversationally. This makes the technology integral to computing devices’ operation and user experience.

Continuous Evolution and Customization

  • The ongoing development and expansion of the Phi-3 family suggest a future where AI can be continually updated and customized to meet specific user needs and scenarios, a critical feature for maintaining an adaptable and evolving AI OS.

Enhancing Remote and Real-time Applications

  • The use of Phi-3 in scenarios like agriculture, where robust, real-time AI support is crucial even in internet-constrained environments, showcases the potential for AI to operate independently and effectively as an operating system in various practical settings.

The development of Microsoft’s Phi-3 models aligns with and perhaps accelerates the realization of the “AI as OS” concept. By improving efficiency, expanding contextual understanding, and ensuring cross-platform operability, these models pave the way for AI to transition from an underlying technology to a fundamental, interactive component of the operating system landscape. Given the rapid advancements in AI capabilities and implementation strategies showcased by developments like Phi-3, this shift will likely occur faster than anticipated.

The concept of AI as an Operating System (AI as OS) has profound implications across all sectors and levels of society, from individual users to large organizations. Understanding and preparing for these impacts is crucial for people in general, company leadership, Boards of Directors, and software companies. Here are some key strategies and considerations for different stakeholders to comprehend and adapt to the implications of AI as OS:

General Public and Individual Users

  • Education and Awareness: Individuals should seek to understand the basics of AI technology, particularly how AI as an OS might influence their daily digital interactions, privacy, and data security.
  • Skill Development: As AI integrates more deeply into systems, individuals should adapt by acquiring new skills that enable them to effectively interact with AI-driven systems, focusing on areas where human oversight and critical thinking are essential.

Company Leadership and Boards of Directors

  • Strategic Planning: Leaders should consider how AI as OS can be leveraged to enhance operational efficiency, innovate product offerings, and improve customer experiences. Strategic planning should include identifying areas most likely to benefit from AI integration, such as customer service, data analysis, and internal operations.
  • Risk Management: It’s crucial to assess and manage the risks associated with deploying AI, including ethical considerations, data security, and potential disruptions to existing business models. Leadership should also proactively align AI strategies with regulatory expectations and ethical standards.
  • Investment in Technology: To stay competitive, companies may need to invest in new technologies and infrastructure that support the integration of AI at an OS level. This includes primarily preparing current employees and hiring new talent specialized in AI and machine learning.

Software Companies

  • Innovation in Product Development: Software companies must anticipate how AI as OS will change user expectations and software functionalities. This might involve developing new applications optimized for AI-driven environments or redesigning existing products to better integrate with AI capabilities.
  • Collaboration and Partnerships: Partnerships with AI technology providers can be crucial. Collaborative efforts can share knowledge, resources, and risks in developing AI-integrated systems.
  • Keeping Pace with Change: Software companies must remain agile to keep pace with the rapid developments in AI technology. Continuous learning and adaptation will be essential to maintain relevance and competitiveness.

All Stakeholders

  • Ethical Considerations and Public Trust: All stakeholders must consider the ethical implications of AI as OS, particularly regarding privacy, bias, and transparency. Building systems that earn public trust by safeguarding user data and providing clear user benefits is essential.
  • Preparing for Transformational Change: Stakeholders should prepare for significant changes in how technologies are used and how business is conducted. This might involve revisiting core business processes, rethinking user interfaces, and considering new business models facilitated by AI.

The integration of AI at the operating system level signifies a transformational shift that requires careful consideration and strategic planning across all sectors. Stakeholders must adapt to the inevitable changes brought about by AI as OS and prepare for the long-term implications on work, governance, and social interactions. As AI evolves, staying informed and agile will be crucial in leveraging its potential responsibly and effectively.

About the author: Greg Twemlow, Co-Founder of Future Skills Studio and Member of Medium 200-Club.

Greg Twemlow

Greg Twemlow: fostering interdisciplinary dialogues and continuously exploring the interplay between technology, particularly GenAI, education, ethics, and philosophy, and, since 2018, CEO of Future Skills Studio, focused on experiential learning programs for young people.

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Greg Twemlow

Pioneering AI-Enhanced Educational Strategies | Champion of Lifelong Learning & Student Success in the GenAI Era