AI disruption and opportunity
A sector-by-sector guide for entrepreneurs
Generative artificial intelligence (genAI) has the potential to transform industries. Our latest CIO report for entrepreneurs looks at the impact of AI on eleven different sectors.
Key report takeaways
1. We see the genAI technology transition as a platform shift, owing to the underlying performance of the technology and its universal applicability.
2. GenAI is expected to expand beyond the technology sector and have wide-reaching implications. The underlying technology of genAI is improving at a rapid pace and being embraced by new industries.
3. Culture will be a key determinant as to which firms capture the value from genAI rather than be disrupted by it over the long term.
What’s the opportunity for entrepreneurs?
The range of problems that artificial intelligence (AI) can address keeps growing, enhancing the productivity of knowledge workers every day (high-level workers who apply theoretical and analytical knowledge, acquired through formal training, to develop products and services). With 1 billion knowledge workers worldwide, the productivity gains could easily surpass that of the internet.
For private companies, we see greater potential in the application layer as genAI simplifies and empowers smaller teams to have outsized impact. We have seen faster time to material revenues, smaller teams achieving unicorn status, and fewer years to achieve unicorn status for AI native startups.
We expect the usage and implementation of genAI to offer more scope for startups to scale and disrupt incumbents.
Building genAI infrastructure hasn’t been disruptive on the supply side. This is largely due to the consolidated nature of semiconductors and cloud computing platforms as well as the capital intensity of developing genAI leading-edge technology.
Pre-training, post-training, and test-time compute scaling laws mean that building genAI (as opposed to using genAI) is reserved for the most well capitalized businesses. However, the usage of genAI should create new markets and thus potential for start-ups and entrepreneurs.
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We expect some of the biggest impacts of AI to be in the technology, communication services, financial, and health care sectors, among others.
From automobiles to utilities, check out our CIO report to learn more about the impact of AI impact across eleven different sectors.