From Frenzy to Real Utility:

• A report by Sequoia Capital sought to analyze the potential of Generative AI in solving real-world problems.

• Over $1 billion in revenue has been generated from startups in the Generative AI realm, which has already had a more successful start than the SaaS (software as a service) market did.

• Generative AI transitioned from technology-driven ("Act 1") to customer first approach ("Act 2") addressing real human problems.

• The foundational model, such as ChatGPT, should play a role as part of the solution, though not the entire solution.

Real-World Utility is Coming:

• Increasingly Sophisticated Agents: Shifting from rudimentary autocomplete to full-fledged autonomous problem solvers that can handle tasks from start to finish.

  • In fact we recently wrote about an agent being developed to play a AAA video game in real time while self-improving.

• System-Wide-Optimization: Such as autonomously resolving batches of support queries or code requests, which contributes to the overall efficacy of systems.

  • In fact, new solutions like Klarna’s groundbreaking customer support tool are taking on whole corporate workloads.

• Generative Interfaces: The landscape of generative interfaces is expanding beyond traditional text-based UX, with innovative user interfaces and authentic-sounding voices from entities like Inflection AI.

  • In fact, entire video games can be generated by AI in real time, and a whole new class of devices are being developed.