One dramatic oversimplification is that use cases can be grouped into two buckets: 1) Creativity, and 2) Productivity.

Just as AI amplifies creativity, AI amplifies productivity. We see this in the tools that give writers and marketers superpowers, like Jasper.ai, Copy.ai, and Lex.

Copilot now generates about 40% of code in the projects where it’s installed, headed to 80% within five years.

We’re in the very early innings of applications, and it’s too early to tell what the killer apps will be. A looming question mark is how companies will build competitive moats; true tech differentiation is rare, and companies will need to find ways to stay ahead of competition, perhaps with network effects or with iterative loops of user engagement and product refinement.

My hunch is that many of the best AI startups will be SaaS companies.

The short answer for business models in AI applications is that we’ll likely see the same go-to business models that have powered tech (and business writ large) over the last generation.

Marketplaces will likely (again) prove to be more capital intensive to scale, but will (again) have powerful network effects that provide strong moats. And SaaS will (again) prove to be among the most desirable business models, though AI SaaS companies will need best-in-class products to cut through the noise of how crowded enterprise SaaS has become.

the Wharton professor Ethan Mollick, who argues, “Large language models aren’t going to get less capable in the next few years. We need to figure out a way to adjust to these tools, and not just ban them.” Today’s kids will live in a world teeming with AI; they need to understand how to navigate that world.

What does it mean when computers are better at visual imagination than 99 percent of humans? That doesn’t mean we will stop imagining. Cars are faster than humans, but that doesn’t mean we stopped walking. When we’re moving huge amounts of stuff over huge distances, we need engines, whether that’s airplanes or boats or cars. And we see this technology as an engine for the imagination. So it’s a very positive and humanistic thing.