Venture Capitalists Are Transforming Traditional Sectors at Increasing Rates
The top 10 venture capital firms manage around 160 billion dollars, which means they’re fully able to initiate that leap in the global sectors and markets. What VCs are doing now is both directly investing in AI startups and companies, and also buying companies then transforming and automating them using AI.
If you’re asking what’s new about this, it’s that we now can automate tasks that just a short while ago we thought needed human intervention. We can agree that in most cases AI is faster, more accurate, cheaper, and more reliable than human beings. We’ll start from this common ground.
Firms can and will save billions of dollars automating most of their tasks. Amazon’s total payroll, for example, is around 80 billion dollars annually, Walmart’s is 69 billion. Imagine how much money can be saved by integrating AI in sectors like accounting, customer service, manufacturing, transportation, agriculture, and many others.
What’s also equally important is time; getting work done faster is, by default, worth more. Remember, we agreed that AI is both faster and cheaper, which makes it unbeatable.
You might think, okay, that would take years before it’s fully implemented, but if you’re familiar with the term exponential growth, you know how quick this could happen. Simply, if we were to start an AI company or project today, it would utilize most, if not all, of everything we’ve reached so far, and then we can build upon.
If we also agree that AI is growing exponentially, at what rate are human beings improving? Again, that’s why it’s unbeatable.
Of course, many people would directly lose their jobs to AI; others would lose them to people who can better use, create, or manage AI. Don’t forget that we now have more computing power and faster internet speeds than we’ve ever had, which provides the foundation for that leap into AI transformation.
As an investor, how can that benefit you? One possible way is investing into companies that will grow rapidly as a direct result of this AI transformation.
Some of the examples are: semiconductor manufacturers, cloud computing providers, and software companies.
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How long do you think it would take global companies to fully integrate AI? Let me know what you think in the comments section.