AI in 2023: The Application Layer Has Arrived

AI in 2023: The Application Layer Has Arrived

In the world of artificial intelligence, the future is now. AI has made significant advancements in recent years, and it's clear that we are just scratching the surface of its potential. One way to categorize the use cases of AI is by grouping them into two buckets: creativity and productivity. These two areas highlight the vast range of applications that AI can have in various industries.

When it comes to creativity, AI has already started to make its mark. One example is Copilot, a program that generates around 40% of code in projects where it's installed, with the goal of reaching 80% within the next five years. This level of automation has the potential to revolutionize software development and streamline the coding process. However, we are still in the early stages of AI applications, and it's difficult to predict what the future holds. The question remains: what will be the killer apps of AI?

Another challenge that companies will face is how to build competitive moats in the AI space. True technological differentiation is rare, and companies will need to find innovative ways to stay ahead of the competition. One possible solution is to leverage network effects or create iterative loops of user engagement and product refinement. In this regard, many experts believe that the best AI startups will be SaaS companies. The software-as-a-service model has proven to be successful in the tech industry, and AI startups will need to offer best-in-class products to stand out in the crowded enterprise SaaS market.

Ethan Mollick, a professor at Wharton, argues that large language models, such as GPT-3, are not going to become less capable in the coming years. Instead of banning these tools, we need to figure out how to adapt and adjust to their capabilities. It's important for today's children to understand how to navigate a world that is teeming with AI. While computers may excel in certain areas, such as visual imagination, it doesn't mean that humans will stop imagining. AI should be seen as an engine for the imagination, a tool that amplifies our creative abilities.

On the other hand, AI also has the power to amplify productivity. We can already see this in the tools available to writers and marketers, such as Jasper.ai, Copy.ai, and Lex. These AI-powered platforms give professionals superpowers, enabling them to work more efficiently and effectively. With AI, we can automate repetitive tasks, analyze data at scale, and generate insights that would be impossible for humans alone. The possibilities are endless when it comes to boosting productivity with AI.

In a completely different realm, collecting has been a longstanding human activity that has evolved over centuries. For many, collecting is a choice, a hobby that brings joy and satisfaction. However, for some individuals, collecting can become a compulsion, sharing characteristics with obsessive hoarding. Inherited symptoms of obsessive-compulsive disorder can sometimes manifest through collecting, and it can also reflect a fear of scarcity or a fear of discarding something that may later be regretted.

Collecting practices have been observed throughout history, with evidence of it dating back to the 3rd millennium BCE in Mesopotamia. In Renaissance Florence, the Medici family played a pivotal role in art collecting through private patronage. This tradition continues today with private art collectors who support artists and enable them to create freely outside the constraints of church or royal funding. The collecting hobby can be seen as a modern descendant of the "cabinet of curiosities," which was popular among scholars from the 16th century onwards.

When we examine the commonalities between AI and collecting, we can find some intriguing connections. Both AI and collecting are driven by a desire to explore and expand human capabilities. AI amplifies our creativity and productivity, while collecting allows us to acquire and appreciate the unique and extraordinary. Both fields have the potential to shape our future and enhance our human experience.

As we move forward in the age of AI, there are actionable steps that we can take to navigate this evolving landscape. Here are three pieces of advice:

• 1. Embrace AI as a tool for creativity and productivity. Instead of fearing the advancements in AI, we should embrace them and explore how they can enhance our abilities. AI can be a powerful ally in our creative endeavors and a catalyst for increased productivity.

• 2. Stay ahead of the competition by leveraging innovative business models. Building a competitive moat in the AI space can be challenging, but by adopting business models that have proven successful in the past, such as marketplaces and SaaS, companies can position themselves for long-term success.

• 3. Foster a deep understanding of AI for future generations. It's crucial for children to be educated about AI and its impact on society. By providing them with the tools and knowledge to navigate the AI-driven world, we can ensure that they are prepared to harness its power responsibly.

In conclusion, AI has reached a pivotal point in its development, and the application layer has arrived. From enhancing creativity to boosting productivity, AI has the potential to transform various industries and reshape our future. By embracing AI, leveraging innovative business models, and educating future generations, we can navigate this evolving landscape and harness the full potential of AI for the benefit of humanity.