Higher Order Capital

Applied AI is here. AI has reached escape velocity and what was once experimental is now essential. At General Catalyst, we believe Applied AI isn’t just about automation—it’s about transforming how entire industries operate. That’s why we’re excited to share our latest piece: Business Transformation with Applied AI. Co-written with my partners Quentin Clark and Jeannette zu Fürstenberg, this framework outlines our perspective on how founders and enterprises can harness AI to create real, lasting value—moving beyond hype to build companies that scale and endure. ?? Three key pillars driving this shift: 1?? Intelligence – Pushing the frontiers of AI model capabilities while keeping human needs at the center, like in industry-specific models 2?? Infrastructure – Building the platforms that power AI-native businesses for large enterprises at manageable cost 3?? Workforce Enablement – Redefining the very nature of work with AI and Human workforces side-by-side It's these three pillars *together* that will drive applied AI to actually take hold in our economy and society. AI is no longer a standalone tool—it’s becoming the operating system for modern business. We’re backing the founders who are shaping this future. Read our full perspective here: https://lnkd.in/gnD8TCrs Special thank you to the founders and portfolio companies mentioned who through our work together or feedback on this piece have really shaped how we view this transformation: Mistral AI (Arthur Mensch), Anthropic (Dario Amodei), PhysicsX (Jacomo Corbo), Manas AI (Siddhartha Mukherjee), Moonvalley (Naeem Talukdar), Codeium (Varun Mohan), Rox (Ishan Mukherjee), Glean (Arvind Jain), Commure (Tanay Tandon), Helsing (Dr. Gundbert Scherf, Torsten Reil, Niklas K?hler), Hippocratic AI (Munjal Shah), Kick (Conrad Wadowski), Crescendo (Anand Chandrasekaran, Andy Lee, Matt Price), and our GC Institute (Teresa Carlson) #AI #AppliedAI #BusinessTransformation?

?? The Age of AI-Driven Services Is Here ?? Automation, powered by innovations like Large Language Models (LLMs), AI agents, Human-AI collaboration, and even Physical AI (robots, drones, autonomous vehicles), is revolutionizing service-oriented industries. This isn’t just about efficiency—it’s a game-changer for scalability, cost structure, rate of growth, and customer experience. As Joe Lonsdale and team recently highlighted at 8VC, these technologies are fundamentally reshaping the way we think about services: ? Automating Complexity: From LLMs analyzing massive datasets to autonomous systems handling physical tasks, automation is tackling challenges that once required significant human effort. ? Enhancing Scalability: Serve more clients and achieve more outcomes without proportionally increasing resources—automation and AI make it possible. ? Transforming Economics: Lower operational costs while delivering faster, more tailored solutions at scale, whether through language-based AI or physical automation like drones and autonomous vehicles. ? Reinventing Business Models: The line between services and products is blurring, with firms now offering AI-powered solutions that combine the flexibility of traditional services with the efficiencies of SaaS and robotics. This isn’t just about doing things faster—it’s about unlocking entirely new opportunities across industries. Companies that integrate a mix of LLMs, AI agents, and physical automation strategically will lead in this new era of productivity and innovation. Read the original post: https://lnkd.in/eE_S5Uef How do you see Automation transforming your industry? Let’s discuss! ?? #HigherOrder #AI #B2B #Automation #Scalability #Innovation

Robotics is certainly having its moment. Reading this Financial Times piece, I couldn’t help but reflect on how far we’ve come—and the exciting challenges ahead. The rapid advancements in physical AI highlighted resonate deeply with both my work at Diligent and my academic research into human-robot interaction. There are many inspiring demonstrations and examples of robot dexterity in the article (presented beautifully by the way). And while it’s fun to see robots flipping pancakes or tying shoelaces, as demonstrations of how functional these new capabilities are, the real test will come when the rubber hits the road in a real environment. Speaking from experience in bringing research to product - the truly complex things that mobile manipulation robots need to handle are in their ability to navigate dynamic, unpredictable environments and work with humans, not just for them. This is where some of the most interesting aspects of embodied AI come into play. At Diligent, we’ve spent years honing Moxi’s ability to operate seamlessly alongside healthcare teams in busy hospitals—managing lab and pharmacy workflows, badging into secure areas, and even riding elevators with people autonomously. These environments aren’t static. They require robots that can adapt in real-time, respond to people in the environment, and handle the complexities of the physical world. At Diligent we focus not on building robots that imitate humans—but instead on designing general purpose robots that complement and enhance what humans do best. This is where I see the future of robotics being most exciting -- the future is People + Robots. The article’s discussion of advances in teaching robots dexterity really highlights the importance of robust datasets in shaping these capabilities. At Diligent, every delivery our fleet of Moxi robots make contributes to a growing knowledge base that informs smarter, more adaptable systems. This ability to leverage a fleet of robots in the world is going to be a key factor in putting dexterous robots to work in the real world. Having been in the field of Robot Learning for years, it’s incredibly exciting to see the surge of advances in dexterity and robot capability today. For companies and founders working to productize these advances, the focus needs to remain clear: creating technology that serves human needs with precision, empathy, and practicality. https://lnkd.in/gC6nvf3T