AI and the Magnificent 7: How Everybody Else can NOT get left in the dust......
A three-legged stool now clearly describes our AI ecosystem's foundational elements: GPUs, LLMs (Large Language Models), and Content (and that is capitalized for some very good reasons). These components are mutually reinforcing (all 3 feed each other and need each other), creating a dynamic yet challenging environment for businesses aiming to leverage AI's transformative potential.
A closer look at the AI vanguard reveals a group of companies that are redefining stock price and market valuations, the "Magnificent 7" - Alphabet, Amazon, Tesla, Microsoft, Meta, Apple, and Nvidia. These behemoths dominate the realms of GPUs and LLMs, leveraging their vast resources, engineering prowess, and distribution networks to steer the direction of AI development and the ecosystem itself. But it's the third leg of the stool, the content, where a window of opportunity creaks open for the rest of the business world, those of us who DO NOT work for one of the Magnificent 7.
The Unmatched Advantage of Content
Why does Content emerge as the battleground for businesses outside the elite circle of the Magnificent 7? It's crystal clear - these giants command an overwhelming advantage in technology and capital, leaving little room for others to outmaneuver them in hardware and algorithms. Yet, the Content - the fuel that powers AI - is where diversity, uniqueness, and specificity become strengths rather than liabilities.
The key to competitiveness in this skewed landscape lies in harnessing first-party data. This data, derived directly from your customers, encapsulates unique insights, preferences, and behaviors that are gold mines for tailored AI solutions. This is where any business injects its "secret sauce" or the reasons anyone picks them. It represents a stronghold not easily replicated or overthrown by the big boys, provided it's utilized to its fullest potential. And guess what? This is one of the ONLY things members of the "Magnificent 7" doesn't have....yet.
A Call to Action: Harness AI Around Your Data
For businesses outside the "Magnificent 7," the path to relevance and growth in the AI era is not through direct confrontation but through strategic differentiation. Embracing your unique first-party data and integrating AI to uncover insights, predict trends, and personalize customer experiences WILL transform this data into a competitive edge.
The imperative for these businesses is threefold. First, understand the immense value of the data you already possess. Second, invest in AI capabilities to analyze, interpret, and act on this data in ways that deliver real value to your customers and differentiate your offerings. Last one - it's time for us all to reexamine how we TREAT our customers. Friends, it HAS TO BE 5 star service time.
The Silver Lining: Growth and Independence
I am not saying this "AI pivot" doesn't have challenges, including data privacy concerns, the need for skilled talent, and the imperative for robust data governance. But the rewards justify the endeavor, the short term pain. Businesses that master the art of applying AI to their unique datasets can not only enhance their value proposition but also secure a more independent path in the AI-driven marketplace. This strategy WILL lead to enhanced customer loyalty, innovative product and service offerings, and, ultimately, a sustainable competitive advantage.
Conclusion: A Future Shaped by Strategic Insight and Innovation
The dominance of the Magnificent 7 in the AI ecosystem might seem daunting - they can outspend all of us. But it also underscores the vital importance of Content - a domain where every business can find its voice and leverage. By focusing on the unique insights and direct relationships you have with your customers, your business can transform first-party data into a strategic asset that powers growth and innovation.
The future belongs to those who not only adapt to the AI revolution but also carve out niches by harnessing the unique value of their data. Let's not become mere cogs in the machinery of giants. The new focus needs to be on Content that moves the needle with your customers. The AI tools that are emerging give you the ability to do exactly that.
As we stand at this crossroads, the choice is clear. Dive deep into your data, figure out how to use AI to unlock its full potential, and secure your place in an AI-driven world. A new day is dawning, and those that see it and get in early will not only be at the front of the line but will play offense against the "Magnificent 7", not defense.
I'd love the thoughts of my AI community!
Artur Sossin Jared Williams ?? Robin Doris Greg Howe Frank F. Dolan Dan Frydman Heather Murray Luke Didriksen Cody Flurry Roy Haggerty James Ghawaly Dr. Sophia Elizabeth Fourie (Eng.) Hanh Brown Joe Prendergast Roman Nazarewycz Jakob K?r Bille Krogh Nielsen Rex Warren, CPA Svetlana Makarova, MBA Jamie Hu P. Kerr Wall Brett Reynolds Andreas Schwarzkopf
Lead AI Software Engineer at DisruptREADY | Computer Science LSU
1 年The ability to train smaller models that require less compute power and perform niche tasks well makes access to firsthand information invaluable. Firsthand data and customer relationships will provide the edge that smaller businesses need to compete with the Mag 7.
Data and AI Specialist at Microsoft | ?AI Advisor | Speaker | Disruption Digest Podcast Host | ??Digital Transformation with Azure
1 年The vast majority of businesses outside the "Magnificent 7," aren't competing against them. The "Magnificent 7" aren't trying to take their customer's business. Instead, they are a service provider to their customers. In that sense, their AI offerings are more aligned with empowering their customers. Having said that, I 100% agree with you on using data! Using AI to act on first-party data to uncover insights, predict trends, and personalize customer experiences is how to get the most out of this technology.
International Commercial Real Estate | Logistics & Industrial | AI Real Estate & Agentic Workflows | Speaker
1 年While I agree with your view on GPUs (and soon LPUs) and the training of foundation models, in my view, content is not solely proprietary data. AI professionals will soon begin to set up custom agency frameworks tailored to specific corporate tasks, strategies, compliance, etc. I simply cannot envision how companies can avoid this ‘agency layer of corporate alignment’. All of us will obviously depend on one or more of the Magnificent Seven, but the customization for individual use-cases will have to be structured within the confines of corporate identity. Furthermore, I see a great future for smaller LLMs, which, soon enough, will be able to compete on simpler tasks with the GPT-4Ts of the world. When ready, such smaller models will be able to keep the price per token at a minimum.
?? Healthcare Policy & AI Strategist | Speaker ?? | Bridging Tech, Science & Policy | Tech-Savvy with AI & Coding Expertise | Advancing Healthcare Public Affairs & PR | Worked with Hevolution, EndoDNA, Guardant Health
1 年Great article my friend and very insightful! Henry Hays
Driving AI innovation & strategy for business growth | AI leadership & transformation | Trusted by 20+ industry leaders | Open to executive roles
1 年I loved the article, Henry Hays! The LLMs of today and emerging solutions are still indeed limited by the knowledge they have access to. Many business are sitting on data moats. For some, it is not even digitized yet. If you take the current AI tech and leverage that... Well, let's just say there are still a lot of vacuum spots in the market that no one has occupied. Yet.