AI-powered businesses will rule the future. The evolution of AI has taken it from a data science experiment to a transformative force in the business world. This evolution can be seen through the maturity curve of automation, autonomous systems, and finally, alliance between humans and AI.

AI-powered businesses will rule the future. The evolution of AI has taken it from a data science experiment to a transformative force in the business world. This evolution can be seen through the maturity curve of automation, autonomous systems, and finally, alliance between humans and AI.

In the early stages, AI helped businesses with automation and digitization. It accelerated decision-making processes through predictive analysis and insights. However, it still relied on human interventions for critical actions. This can be considered the first generation of AI.

As AI continues to advance, we are now entering the second generation, where AI systems are becoming more autonomous. They have the ability to take limited actions without human intervention. These autonomous systems are capable of performing key business functions and working alongside humans in a collaborative environment.

The third generation of AI is where we are headed. It is a new generation of fully autonomous intelligent devices that not only takes over many key human-centric business functions but also works alongside us and conducts business with us in a collaborative environment. This third generation of AI will be a true partner to humans in business, with complete ownership of the business function.

To scale AI in a transformative enterprise, there are three theaters where the AI of the future would need to expand: Engineering, Business, and Wisdom.

In the Engineering theater, scaling mathematics through constant silicon innovation is crucial. This includes techniques like cloud-native designs, hyper-connectivity, quantum technology, and community-based coding. Open source collaboration is key to developing the best AI solutions.

In the Business theater, it is important to reimagine business models to leverage AI and eliminate human business functions. This involves creating disruptive models that can operate in multiple industries, known as fractured markets. By embracing AI, businesses can become more efficient and innovative.

In the Wisdom theater, teaching AI appropriately is essential. AI amplifies what it is taught, so it is important to focus on teaching it good learnings. This includes areas such as labeling, ethics, and linguistics. Responsible AI self-governance should also be established to prevent malicious use of AI.

In a similar vein, the concept of a marketplace is also evolving. A managed marketplace is a marketplace that goes beyond simply connecting buyers and sellers. It aims to improve the customer experience by being more involved in the execution of transactions.

There are two types of managed marketplaces: true "managed" marketplaces and marketplaces in name only (MINOs). True "managed" marketplaces enhance interactions between buyers and sellers by providing additional services. This can include authentication, background checks, and customer service. These marketplaces still maintain network effects and the benefits of a traditional marketplace.

On the other hand, MINOs take on the role of the supply side themselves, removing all network effects. Buyers and sellers no longer interact with each other, and the company controls the customer experience. While these MINOs may still be successful, they require more capital and have weaker moats compared to true marketplaces.

In conclusion, both AI-powered businesses and managed marketplaces are shaping the future of business. AI is evolving from automation to autonomy, and ultimately becoming an ally to humans in the business world. Similarly, managed marketplaces are redefining the traditional marketplace model to provide a better customer experience. Both concepts require careful consideration and strategic implementation to fully realize their potential.

Actionable advice:

• 1. Embrace AI in your business by exploring automation and digitization. Look for areas where AI can streamline processes and improve efficiency.

• 2. Consider the role of a managed marketplace in your industry. Assess whether additional services can enhance the customer experience and create a competitive advantage.

• 3. Focus on teaching AI responsibly. Consider the ethical implications of AI and establish guidelines for its use in your organization. Additionally, collaborate with the open-source community to develop the best AI solutions.