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.
“The nature of the generative AI market is evolving. Hype and flash are giving way to real value and whole product experiences.”
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.