Decoding AI #2: AI Growing Faster than SaaS, Consulting Reimagined...

?? Welcome to Decoding AI. A weekly portal into the fascinating universe of Artificial Intelligence and the technologies that are reshaping our world. Decoding AI was born to simplify the complex and decrypt the unknown. Subscribe and join this journey of discovery!

As things accelerate, a culture of experimentation is no longer optional—it’s essential. Gaining buy-in has become easier than ever, as the value can quickly become evident. To inspire your team, remind them: We should fight politics with prototypes.

From generative AI creating new content to specialized tools improving decision-making, AI is advancing faster than ever, even outpacing previous tech revolutions like SaaS. It’s not just about automating tasks—it’s about finding new ways to think, create, and act.

A clear example of how fast the AI market is growing is 11x.ai, a digital worker startup. In September this year, they announced a $24 million Series A funding round (source). Just one month later (ONE MONTH), in October, they secured an additional $50 million in a Series B round (source). Now that’s mind-blowing!? ??

This week, I’m sharing articles about how AI is growing, from progress in quantum computing to smarter tools for real-world applications.

Top Reads this week

?? AI Growing Faster than SaaS – NotoriousAI

AI companies are outpacing traditional SaaS startups, setting the stage for a new era in software innovation and business growth. Read here

?? Introducing the Model Context Protocol – Anthropic

Anthropic unveils a new open-source standard designed to connect AI systems with diverse data sources, enabling more accurate and relevant responses. Read here

?? Welcome to LLMflation: LLM Inference Costs Are Dropping Fast – a16z

The cost of running large language models is falling rapidly, opening doors for broader AI adoption and more innovative applications. Read here

?? Consulting Reimagined, Powered by AI – IBM

86% of consulting buyers now prioritize AI integration in services, signaling a fundamental shift in how consulting is evolving to meet modern demands. Read here

?? The State of Generative AI in the Enterprise – Menlo Ventures

With enterprise spending on generative AI projected to hit $13.8 billion, businesses are betting big on its potential to transform productivity and innovation. Read here

?? Prompting for Action: How AI Agents Are Reshaping the Future of Work – Deloitte

How generative AI agents and multi-agent systems are redefining automation, collaboration, and decision-making in business. Read here

?? Actionable AI: The Rise of Large Action Models – LeewayHertz

Large Action Models (LAMs) are redefining actionable AI by integrating complex decision-making into real-time processes. Read here

?? Amazon Enters the AI Chip Race – Investing.com

Amazon plans to develop its own AI chips, aiming to boost independence and reduce reliance on Nvidia’s dominant hardware. Read here

? Google’s AI Breakthrough Brings Quantum Computing Closer – Decrypt

Google’s AlphaQubit improves error correction in quantum computing, marking a significant step toward real-world applications in various industries. Read here

?? Fireworks f1: A New Model in Complex Reasoning with Compound AI – Fireworks AI

Fireworks f1 takes a unique approach by integrating multiple open models to deliver advanced reasoning capabilities. Read here

?? Alibaba Researchers Unveil Marco-O1, an LLM with Advanced Reasoning Capabilities – VentureBeat

Alibaba’s Marco-O1 model pushes the boundaries of problem-solving with advanced reasoning techniques, setting new standards for LLMs. Read here

Videos

?? Vertical AI Agents Could Be 10x Bigger Than SaaS – Y Combinator

Explore the massive potential of vertical AI agents, which could surpass SaaS in scale and impact. Watch here

?? Dario Amodei: Anthropic CEO on Claude, AGI & the Future of AI & Humanity – Lex Fridman Podcast

A deep dive into the future of AI, AGI, and its implications for humanity, featuring Anthropic CEO Dario Amodei. Watch here

Thank you for reading Decoding AI. See you next time! ??

Oscar del Rio - Founder i7o ventures Interacso