Riding the AI Superwave: Why AI is the Next Disruptive Force
In the vast ocean of technological advancements, there are some waves that become tsunamis that reshape industries, transform economies, and create unprecedented wealth. These tsunamis or "Superwaves" begin with subtle ripples that gather strength and exponentially grow closer to shore, ultimately causing irreversible structural shifts. The Internet, with its broad utility, wide adoption, exponential growth, and transformative innovations, serves as a prime example of a Superwave. Today, we stand on the brink of another Superwave: Artificial Intelligence (AI).
Artificial Intelligence will have a more profound impact on humanity than fire, electricity and the internet.
The term ‘AI’ was coined in 1956 by John McCarthy.
John McCarthy was a Stanford computer science professor who organized an academic conference on the topic at Dartmouth College in the summer of that year.
During that time, research in AI was focused towards issues of problem solving and symbolic methods. Government agencies in this type of technology and began training computers to mimic basic human reasoning. The early paved the way for formal reasoning that we see in the computers today, including decision support systems and smart search systems.
Excitement regarding modern AI is due to the convergence of 3 key trends:
Artificial Intelligence is expected to contribute $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. This massive impact is driven by by 4 key factors -
Broad Utility: Impacting Every Industry
AI is a horizontal innovation with the potential to revolutionize every sector. It encompasses hardware and software that exhibit intelligent behaviors, allowing machines to think, perceive, learn, solve problems, and make decisions. Sundar Pichai, CEO of Google, aptly stated that “AI will have a more profound impact on humanity than fire, electricity, and the internet”.
With AI already driving billions of hours of worker productivity, it is forecasted to become a $15.7 trillion market by 2030. Recognizing its broad utility, all Fortune 500 companies, leading technology businesses, and consulting firms are heavily investing in AI capabilities.
Wide Adoption: Penetrating Every Corner
AI is no longer confined to research labs or a select few industries. Today, 75% of commercial enterprise applications leverage AI, and 90% of enterprises have dedicated investments in the technology. From banking and finance to healthcare, mobility, retail, and beyond, AI is being utilized across diverse use cases, benefiting consumers, businesses, and governments.
Moreover, its capabilities have rapidly expanded while the cost of AI implementation is dropping. This trend is fuelling wider adoption as AI solutions become more accessible and effective.
Exponential Growth: Unleashing Unprecedented Potential
The growth of AI can only be described as exponential. ChatGPT set a record time of just 60 days to to reach a 100M users. This is just the first inflection point in the AI growth journey. The amount of data generated in just two years now surpasses the cumulative data produced in history. AI's ability to analyze vast quantities of data, identify patterns, and extract value is unparalleled.
Innovation in AI algorithms and computing architectures has led to the creation of massive models like GPT-4 and DALL-E 2, capable of performing multiple tasks and producing creative outputs. Thus the exponential growth of AI is driven by multiple underlying J-curves, such as research, innovation, data, model size, and computing resources, ensuring its longevity as a Superwave.
Disruptive Impact: Transforming Industries and Creating Wealth
Superwaves like the Internet and AI reshape the business landscape for decades, leading to disruptive and non-linear changes across sectors. The transformative power of AI extends beyond incremental improvements; it is devouring traditional software paradigms and reinventing industries.
For example, AI algorithms are revolutionizing biotech, enabling unicorn startups to drive innovation in areas such as medical diagnosis, drug creation, and personalized healthcare. Just as the Internet has created more wealth than any previous technology, AI has the potential to surpass that feat by impacting every business and generating trillions of dollars in value.
As we navigate the era of AI, we find ourselves at the forefront of a Superwave that will redefine industries, unlock unparalleled productivity, and create extraordinary wealth. The convergence of broad utility, wide adoption, exponential growth, and disruptive impact positions AI as the next defining force.
With India's growing pool of talented founders, favorable economics, and the beginning of a multi-decade investment cycle in AI, now is the opportune time to embrace the AI Superwave and invest in its potential. Let us ride this wave together, transforming industries and shaping the future with the power of AI.