AI in 2023: The Application Layer Has Arrived - Talent archetypes: what is the shape of your skills?

AI in 2023: The Application Layer Has Arrived - Talent archetypes: what is the shape of your skills?

Artificial Intelligence (AI) has become an integral part of our lives, and its application layer is rapidly expanding. When we think about the use cases of AI, they can be broadly grouped into two categories: creativity and productivity. AI has the ability to generate code, with Copilot currently generating about 40% of code in projects where it's installed, and this is expected to increase to 80% within the next five years. However, it's still too early to determine what the killer apps of AI will be.

One of the challenges that companies face in this AI-driven era is building competitive moats. True tech differentiation is rare, and companies will need to find ways to stay ahead of the competition. This can be achieved through network effects or through iterative loops of user engagement and product refinement. It is predicted that many of the best AI startups will be Software-as-a-Service (SaaS) companies.

The business models for AI applications are likely to follow the same patterns that have powered the tech industry over the last generation. Marketplaces will require significant capital to scale but will benefit from strong network effects that provide a competitive advantage. On the other hand, SaaS will continue to be a desirable business model, although AI SaaS companies will need to offer best-in-class products to stand out in the crowded enterprise SaaS market.

There is a growing concern about the impact of AI on the workforce and the skills required in the future. According to Wharton professor Ethan Mollick, we need to find a way to adjust to the tools offered by AI instead of banning them. It is essential for today's children to understand how to navigate a world that is teeming with AI.

But what does it mean for computers to be better at visual imagination than 99 percent of humans? It doesn't mean that humans will stop imagining. Just as cars are faster than humans, we still continue to walk. AI amplifies creativity and productivity. Tools like Jasper.ai, Copy.ai, and Lex provide writers and marketers with superpowers, enhancing their abilities and enabling them to achieve more.

In the realm of talent and skills, a new profile has emerged: the versatilist. This talent archetype is characterized by its ability to respond quickly to different situations due to its broad knowledge base. Unlike generalists, versatilists have deep knowledge in specific fields relevant to the business. They are also comfortable exploring new domains and can become experts in those areas as needed. They are like "T-shaped" people, combining breadth of knowledge with expertise in specific fields.

Researchers Haluk Demirkan and James Spohrer found that T-shaped digital professionals possess critical thinking and problem-solving skills, along with a breadth of knowledge and complex communication abilities. Versatilists are like serial monogamists in their careers, immersing themselves in projects or areas to develop deep knowledge and competence. They are quick to spot new trends and are ready to move on to the next priority area.

To cultivate a versatile mindset, it's important to consume content across different disciplines and practice lifelong learning by staying updated on industry trends. If you currently work as a specialist, it may be daunting to step out of your comfort zone and explore unfamiliar territory. However, practicing metacognition and reflecting on the best areas to invest your time and energy in can help you expand the versatility of your skill set.

In conclusion, AI has reached the application layer, revolutionizing both creativity and productivity. Companies must find ways to build competitive moats and stay ahead of the competition. SaaS companies are expected to thrive in the AI space, but they need to offer exceptional products to stand out. Meanwhile, the workforce needs to adapt to the tools provided by AI and develop a versatile skill set. By embracing lifelong learning and cultivating a versatile mindset, individuals can thrive in the AI-driven world.