I actually think the most interesting results will show up in the earnings of companies using generative AI rather than the tech companies selling it. For virtually all businesses, generative AI can provide a huge cost savings by automating mundane tasks – reducing the need for manual labour. Mainstream businesses that embrace generative AI will see their cost-base fall and their revenues increase.
An obvious example of this is related to my own business – AutogenAI. At AutogenAI we help organisations to write bids, tenders and proposals more effectively and more efficiently. Globally $0.5 trillion dollars is spent competing for work. A typical large outsourcer might spend $100 million a year on their bids, tenders and proposals team. That team might win $1bn of work a year. Using our tech the company can save 50% on their team costs AND increase the amount of work that they win by 30%. That’s a staggering $50 million reduction in cost and an additional £300 million of revenue.
Those numbers are huge but absolutely achievable with well deployed, bespoke, generative AI technology such as ours. Now AutogenAI is operating in just one area of generative AI. There are scores of generative AI tech businesses using this new technology to solve real-world problems.
Generative AI technology is not a technology that makes small incremental improvements for companies. Instead, it is revolutionising the way tasks are done, making them orders of magnitude faster and more efficient. This is akin to the transformative impact of seminal inventions like the internet, electricity, and the printing press.
Businesses are increasingly recognizing the game-changing potential of generative AI and how it can help them and as more businesses adopt this technology, we can expect to see a surge in cost savings and revenue opportunities. Generative AI technology has the potential to transform mundane tasks, freeing up employees to focus on more critical aspects.
Early-adopter companies that harness this trend are likely to be massively more profitable than their competitors who lag behind. Generative AI will provide an insurmountable competitive edge for those who move quickly.
The real opportunities for savvy investors lie in identifying the early-adopter companies that are leveraging generative AI technology. The transformative potential of generative AI technology cannot be overstated. As businesses increasingly adopt this technology, there will be significant shifts in cost savings, revenue opportunities, and overall profitability.