New technologies like the Internet of Things, blockchain, machine learning, and smart robots are changing our lives, companies, and the global economy. But among all these new ideas, there is one that stands out: artificial intelligence (AI). In 2022, the global market for AI was predicted to be worth $119.78 billion. By 2030, it is expected to be worth $1,591.03 billion, thanks to a growth rate of 38.1% per year from 2022 to 2030.
AI is becoming a major force in the tech business and changing the way the market works. With so many new projects, the battle is getting tougher. This is both a task and an opportunity for people who work on making their products better. In the final stage of technological business growth, which can usually be broken down into four stages, these companies will still be in the lead. After that, there could be a big change in technology that brings us back to where we started.
Stage 1: No One Takes Part in the Tech Business
Neither investors nor rivals are very interested in a tech business in its early stages. This is a time when a certain idea or piece of technology has not yet become widely used and known. But at this stage, figuring out what problems or wants haven’t been met can be a key to success.
At one time, no one thought that the age of personal computers would come. What happened? Apple and Microsoft are two of the most valuable and successful companies. I’m writing this on my PC, and their total market capitalization is over $5 trillion.
Stage 2: Few People Are Taking Part
By paying close attention to what the market needs and looking for holes in current solutions, technology pioneers can come up with new ways to solve these problems. But being a pioneer isn’t always about “picking the low-hanging fruit.” Investors generally don’t care much about new technologies when they are just starting out. So, it becomes important to rely on one’s own time and means. This can happen sometimes for a very long time.
For example, the Dartmouth Summer Research Project on Artificial Intelligence in 1956 was the first time people really talked about AI. After that, the development of the artificial neural network design (the perceptron) was a big step forward. This was what started the AI boom. But in the 1980s, the AI business stopped moving forward. This was partly because many AI projects didn’t do what they said they would.
In the 1990s, when technology study and globalization started to pick up again, a new era of AI research began. In the 2000s, big data became a key part of many great AI projects.
Step 3: Everyone Takes Part
In the third stage of technological business growth, a boom happens when a certain business or industry becomes popular and attracts a lot of attention. This can happen because a few companies have done very well and gained a lot of fame and respect in the market, or because more people are becoming aware of how important a certain technology is.
General interest and fame can lead to a lot of new people entering the market and trying to get a piece of the action.
After it was said that Microsoft might invest $10 billion in OpenAI, the company that made ChatGPT, there has been a race between big tech companies and startups to make business programs that use this technology as quickly as possible. Crunchbase says that as of today, over 9,500 AI companies have had more than 23,000 separate funding rounds. The overall amount of money given out has gone over $150 billion.
Stage 4: Only the Top People Are Left
In the fourth stage of the growth of a technology-based business, lasting leadership is built. At this time, the most important things for success are the reliability and quality of the product, constant innovation, and the ability to predict changes in the industry and act quickly on them.
For example, some cell phone companies haven’t been able to keep up with the market and have lost to Apple when it comes to long-term success. AI projects can have the same problem. Venture capitalists think that 85% of AI companies will fail in the next three years. It’s possible that 85% of these businesses will fail, just like tech startups did during the dot-com bubble.
The future belongs to people who know how to use technologies, like AI, to solve real problems and open up new possibilities. At each stage of modern business growth, there are new problems to solve. The most important thing is to keep making cool products and keeping on the cutting edge of new ideas.