How the generative AI boom could generate a wave of successful businesses

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Generative AI (Gen AI) is the buzzword of the year, taking over the global tech ecosystem. Venture capital leader Sequoia said generating AI could "generate trillions of dollars in economic value," and thousands of companies, from Microsoft to Fiat, have rushed to integrate the technology to accelerate productivity and deliver more value to customers.

Any nascent industry like generative AI, as was the case with Web3, also brings many predictions about how big it can/will be. The global AI market is currently worth $136.6 billion, with some estimating it will grow 40% over the next eight years. Even an overall slowdown in VC deals made an exception for Gen AI, with AI-assisted startups accounting for more than half of VC investments last year.

However, although generative AI tools are attracting headlines and money from frugal VCs, and although some early adopters have developed nifty AI tools that address critical points, how many of them will they become long-term businesses? Most of those who have monetized have become businesses rather than part of a long-term strategy, so what will they do if/when they need to scale to meet demand?

Much remains to be done for AI-generation startups to harness this exciting technology and turn it into a sustainable business. In this article, I'll explain where generative AI startups can start if they want to turn that short-term hype into long-term growth so they don't miss out on a potentially huge market opportunity.

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Join us in San Francisco on July 11-12, where senior executives will discuss how they've integrated and optimized AI investments for success and avoided common pitfalls.

There are many obstacles between Gen AI startups and long-term profitability.

First of all, it's hard to turn new technology into something profitable. While Gen AI technology is certainly impressive, there's no telling how to monetize it or fit it into a profitable business model. So far, some of the most successful AI startups have used technology to increase operational efficiency – like Observe.ai, which automates repetitive processes that drive revenue and retention – or to help with processing the language and content creation, like the AI ​​writing assistant Jasper. have. But you can only have a limited number of AI chatbots. Emerging generation AI startups will need to carve out their own niches if they are to succeed.

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