AI is having a real impact in multiple industries. It has already had a huge impact on companies that are now slowly evolving, running at full speed, or appearing seemingly out of nowhere. AI ification has begun and it will continue at an accelerated pace.
This trend is significant and has been bubbling under the surface for some time now. “The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the Internet and the mobile phone,” said Bill Gates in a blog on his website. It is fundamental that you get involved in any way possible.
Virtually every company, no matter how big or small, in any industry, would benefit from incorporating AI or even overhauling its processes using AI. But here’s the huge opportunity for entrepreneurs: if they can move faster than incumbents, they can enter the market with an AI-powered version of the exact same company at a fraction of the cost. The average entrepreneur will lag behind and the exceptional one will fly ahead with this exact strategy of AI-ification.
What is AI verification?
AI-ification is the process by which a company’s output can be replicated in whole or in part using AI. AI ification, if implemented effectively, can reduce costs, dramatically increase output and potentially significantly improve quality.
With the AI boom in full swing, entrepreneurs have already turned to new AI tools to improve their businesses. They make their businesses AI-like by creating content in all formats faster, better or cheaper. They replace multiple team members and freelancers using technology or offer new products and services. Some act out of fear and think too small, some experiment out of sheer intrigue, and some go a step further in creating their own tools.
We’ve seen something similar before. Uberfication means the conversion of existing jobs and services into individual jobs that can be requested on-demand, as popularized by the business model of the ride-hailing app Uber. How many times have you heard something described as “the Uber for…” followed by whatever industry a new app is disrupting: private jet rentals, grocery shopping, photographer bookings, in-home beauty treatments, or vacation home rentals. Uberfication was and still is huge for business, and many startups that followed this model are thriving today.
AI-ification means transforming an existing business model with artificial intelligence, and the possibilities are endless. The AI verification of headshot photography means you upload selfies and the headshots are generated for you. The AI-ification of podcasting means that formats, scripts, show notes and even audio recordings are produced without a human speaking a word. Think of any company and imagine the AI-ification of its purpose and processes. Start building the future based on what you see.
What’s the chance?
Artificial intelligence in its current form gives entrepreneurs the opportunity to completely disrupt existing market leaders if they can get a few steps ahead. Ambitious and adaptable founders or budding entrepreneurs can adopt an AI-ification approach, aimed at creating “the AI version of…” a particular company that is already product-market fit and has high revenues. The goal is to offer it better, faster and cheaper.
Just like a supermarket, but powered by AI. Like a consultant but delivered using AI. Like a book, restaurant, course, class, but redesigned using artificial intelligence to ultimately provide more utility to the consumer, which can be widely operated without the clumsiness that was once necessary.
Former Google CEO Eric Schmidt, who has participated in investments more than $2 billion in AI-focused companies since 2017, sees opportunities for companies, with his advice that entrepreneurs should “run here as fast as possible”. He believes, “If you don’t get there first, someone else will, and you’ll be in trouble.”
But where should you look to apply AI ification? Gates identified global health and education as “two areas of great need and not enough workers to meet those needs.” Hospitals, doctors and schools are under pressure in many countries, creating opportunities for savvy entrepreneurs to provide AI solutions to the challenges out there, while reducing inequality.
Why are entrepreneurs so well positioned to benefit from AI ification? They are simply more flexible, governed by less bureaucracy and have fewer team members around to raise concerns. They can try and fail many times, supported by their existing business. They can place bets and see where they lead and the downside is minimal as they can quietly fail. However, if they get it right, word will spread. Customers of an established service who hear they can get it faster, better and for less money elsewhere risk little to try it out. Suddenly, a new AI tool has a growing number of customers who have no reason to disembark again.
The proficiency of AI right now is miniscule compared to what will be possible in the future, so it makes sense to get ahead as soon as possible. “We’re just at the beginning of what AI can achieve,” Gates said. “Any limitations it has today will be gone before we know it.”
Schmidt offered advice on how a company could use AI to “improve its sales, reach, profitability and scale”. He’d take “Google-level engineers” and say, “I’m not going to tell you what to do.” I just want you to study our business and how we interact with our customers and our technology platform. And I just want you to make it smarter. For you and me, that’s AI verification. For a brand new company, or within an existing company: make it smarter with artificial intelligence.
What are the risks?
The biggest risk is not integrating AI verification into your business. You keep doing the same thing in the same way and someone else catches up with you with seemingly less effort. If you have limited resources, this risk can be very real. You may not know where to start, you may not be able to estimate when to go all in, and you may not be sure where to get the money and time in your existing operation.
After that, you run the risk of downplaying the effort required for AI verification. Schmidt says underestimation often occurs when “people who mean well but aren’t very technical” decide to hire a consultant. “It doesn’t work that way,” he said, “you really have to do the hard work. You have to actually find the engineers. Unfortunately, it’s not like email, which you just turn on and it works.” Developing algorithms and applying machine learning solutions to business processes is not a plug-and-play situation. Adopt a beginner’s mind so that you don’t blunder with naivety.
Another risk is the downside of AI in general, which companies rightly fear. When copyright concerns keep surfacing, jobs are at stake, and we don’t know if this technology has sinister motives, it’s easy to get swept up in conspiracy and focus on the “what if”. Gates said this has to come with balance: “We have to try to balance the fear of the drawbacks of AI – which are understandable and valid – with the ability to improve people’s lives.” Schmidt also thinks, “It’s important that our systems don’t enable the worst of us, but instead promote the best of us.”
Wherever artificial intelligence is now, it will take huge leaps in the not-so-distant future. At some point, all companies will adopt AI in some capacity, if they haven’t already. Expect multiple AI-based business models. Expect AI-ification to become the new Uberfication. Buy your .ai domain name, because you’re going to need it. Entrepreneurs who can thrive in the midst of change and adapt faster than others will be the ones who win. Welcome to the age of AI, which is filled with both opportunities and responsibilities. The main responsibility of ambitious entrepreneurs is not to miss anything.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.