Building a profitable AI-powered economy requires a strong mastery of redesign tactics, adaptation to changes in work processes, and optimal use of business diagnosismentioned a report from Bain’s Technology.
While we recognize the transformative power of AI, there is also a need to analyze its impact on business opportunities, industry structure, revenues and resources.
AI is changing the game
Data reveals that disruption rates are higher in technology than in other sectors, with almost half of the 25 most valuable technology companies falling from the top every 10 years.In 2024, AI has been the precursor of technological change and companies are spending hugely on AI, such as cloud services. It not only increases efficiency but also ensures organized functionality and operations.
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But at the same time, having access to AI is not enough, companies have to rethink to finally get value from it.
Big technology companies like microsoft associated with Open AI and integrated advanced AI into products like Azure and Office, while the chipmaker giant NVIDIA saw the potential of AI-powered gaming GPUs.
Companies are finding ways to adapt to technological advances and capture market value. It’s time for startups to realize that AI can increase revenue, sometimes adding up to 20% to their profits.
Changes and disruptions in technology
Disruption in the technology sector has not slowed down, but turnover among major companies has, according to the report. Four of the five most valuable tech companies in 2024 were among the top tech companies in 2019, and three of the five were on the list in 2009: Microsoft, Apple and Alphabet, which was then Google.
There are cases where the implementation of AI has helped companies focus on data-driven insights and manage products, improving traditional areas to improve productivity.
Intuit is an example of this change. The financial technology platform for consumers and small businesses has integrated GenAI technology and tools to increase end-to-end development speed throughout the enterprise’s software development lifecycle.
Investments in technology
The market for AI products and services could reach between $780 billion and $990 billion by 2027, and large cloud providers constitute the largest concentration of R&D, talent and innovation today, pushing the boundaries of the great models and the advanced infrastructure.
As for investments, Nvidia CEO Jensen Huang discussed the potential in the company’s third-quarter 2024 earnings call. “Generative AI is the largest expansion of TAM software and hardware that we have seen in several decades.”
Therefore, for AI to work for everyone’s benefit, companies must update their systems and data, as well as identify key areas to invest in AI. The AI industry is growing rapidly and is projected to generate nearly $1 trillion in revenue by 2027, driven by improvements from cloud providers and smaller companies.
Merging in technology:
-Companies merge with others to acquire new skills or enter new markets.
-Success depends on how well you can work together and retain important employees.
Governments and AI
-Governments are investing in AI to maintain data privacy and protect their countries.
-Large companies like Microsoft and Nvidia are working with different governments and adapting to
local rules.
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