The main objective of this thread is to monitor the progress of the disruption caused by AI innovation and its impact on the businesses that will be affected or benefited by it.
Since 1997, I have been actively involved in the IT services sector and have personally witnessed two major innovations that caused disruptions. The first one was the immense power unleashed by the introduction of the Internet, which globalized the world and led to the widespread use of distributed software in businesses, optimizing and accelerating their reach. Those who failed to adopt these changes were overtaken by competitors who embraced these innovations early and effectively. An iconic example is Netflix, which disrupted and ultimately replaced the traditional blockbuster business.
The second major innovation was the emergence of public cloud computing services like AWS, Azure, and Google Cloud. Cloud computing revolutionized the IT landscape by reducing server provisioning time from months to minutes and offering a pay-per-use model, eliminating the need for upfront capital investments. This gave rise to a startup boom, empowering college students to become entrepreneurs.
Now, I am witnessing the third wave of disruption caused by Artificial Intelligence (AI). AI, machine learning, and technologies like quant have been around for nearly two decades, but recent advancements in language models like ChatGPT, Claude, Llama, and Bard are accelerating these disruptions even further.
In the AI era, companies with access to vast amounts of data will have a significant advantage. Giants like Google, Microsoft (with LinkedIn and other acquired data), Meta and Amazon (with extensive retail data) are already positioned as major beneficiaries. Companies with access to substantial compute power can scrape data from sources like Twitter and Stack Overflow. In India, organizations like NSE (trading data) and UIDAI (demographics data) are among those with reasonable data access.
Software product development companies operating in this space and large corporations will benefit from reduced reliance on human resources through AI technologies. On the other hand, certain professions and businesses will face heavy disruption, including content writers, designers, low-level software developers (websites, mobile applications), data analysts, sample data creators, and call centers. IT companies busy in providing IT services that fail to innovate risk being commoditized and marginalized.
The impact on the job market, particularly in the mentioned areas, could be profound. It’s essential to understand which sectors, companies, and professions will benefit from these innovations and which ones will be negatively disrupted. Tracking the impact and benefits of these changes will be crucial.
Bloomberg has been doing to optimize its investment and research businesses using AI and machine learning, including the development of BloombergGPT, a 50-billion parameter language model designed for finance. References
[Humans in the Loop: AI & Machine Learning in the Bloomberg Terminal | Bloomberg LP]
https://www.bloomberg.com/company/stories/humans-in-the-loop-ai-machine-learning-in-the-bloomberg-terminal/)
Concluding this by declaring that the topic is edited by ChatGPT, and I am surprised by the enhancements made by it.
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