GenAI may be the new UI for enterprise software
Enterprise software could be disrupted as category windows become collateral damage to generative AI. The scenario: Today's go-to systems are relegated to plumbing as generative AI becomes the de facto user interface that democratizes data, insights, analytics and automation.
Today, enterprise software is dominated by category winners such as Salesforce in CRM, Workday in HR, Oracle and SAP in ERP, Microsoft in productivity and ServiceNow in workflows starting with IT service management.
Generative AI may upend this situation as horizontal services connect systems and provide an interface that essentially composes applications on the fly. In other words, genAI is the new UI and without the surface layer enterprise systems are simply data stores.
In recent days, we've seen the following:
Runway launched its financial planning application that aims to make it easier for businesses to run their finances. Runway is more about an ambient experience than something trying to replace your existing systems. Directionally, what Runway is trying to accomplish makes sense.
Deloitte launched an AI suite for CFOs and will likely expand into the rest of the C-suite. The general concept is generative AI that speaks finance and is trained on Deloitte, third party and enterprise proprietary data. This GPT for CFOs approach collects data from various source systems to provide a real-time view into enterprise financial health, insights and scenario modeling. The source systems for this GPT for CFO suite? Oracle and SAP (finance), Coupa (procurement), Salesforce (revenue), AWS Redshift, Snowflake and Databricks with more connections on deck.
AWS said its Q Apps are generally available . AWS' Q effort is a horizontal approach to generative AI that enables enterprises to automate workflows, create agents that act on your behalf, and automate tasks. Amazon Q is already boosting developer productivity, but its Q Business effort is likely to be a long-tail play for C-levels.
Anthropic is also on the way toward bespoke software. The company’s Artifacts effort is about melding collaboration with genAI.
The theme for these new efforts is simple: Combine data sources, find issues and deliver fixes that drive value. All that is missing from these various efforts is the process mining and automation component that could pair up with evolving genAI interfaces. ServiceNow is tying these disparate enterprise parts together as a platform, but AWS could be downright disruptive. ServiceNow CFO outlines method to Pro Plus SKU pricing
How could Q be disruptive to enterprise software? A few reasons:
AWS has the infrastructure layer and tooling to drive efficiency and potentially compress enterprise software margins. AWS also doesn't have an enterprise software business to protect. AWS did it to data center hardware, moves fast and is focused on customer needs.
CIOs are receptive to hearing more about AWS, Amazon Q and Q Apps because they are tired of software vendors that are looking to maintain margins over customer needs. Enterprise vendors are bifurcating between those that are trying to preserve margins and those that'll absorb some compression.
It’s been a year of disgruntled CXOs in our BT150 meetups.
Enterprises realize technology is at an inflection point, but generative AI is moving so fast they will want horizontal approaches so they can abstract the systems underneath (and avoid lock-in).
Generative AI has created a market that's split between customers that want to build vs. want to buy . An enterprise operating system that enables you to adapt regardless of the enterprise software underneath is compelling. That enterprise OS will have to be built and AWS is all about builders.
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NOTEBOOK:
???????? Quantum computing software provider Classiq has been busy forging partnerships with everyone from Nvidia to BMW to Citi as it aims to expand enterprise use cases with a software layer that abstracts the underlying hardware.?We caught up with Classiq CEO Nir Minerbi to talk about quantum computing and where it's headed .
?? A study published in the June issue of IEEE Transactions on Software Engineering found that ChatGPT's ability to produce functional code is hampered for algorithm problems after 2021. Essentially, as coding evolves, ChatGPT has not been exposed yet to new problems and solutions . It lacks the critical thinking skills of a human and can only address problems it has previously encountered.
???Accenture CTO Paul Daugherty is retiring Aug. 31 . Daugherty's responsibilities will be split between Karthik Narain, who will become Group Chief Executive, Technology, and Chief Technology Officer, and Bhaskar Ghosh, current Chief Strategy Officer and future Chief Strategy and Innovation Officer. Accenture announced Daugherty's retirement along with a series of other executive changes. More: Accenture's Paul?Daugherty: Generative AI today, but watch what's next ?| Daugherty DisrupTV appearances:?2023 ,?2022 ,?2021 ,?2020
??Intuit laid off 10% of its workforce or about 1,800 employees . Intuit CEO Sasan Goodarzi said in an employee email: "We do not do layoffs to cut costs, and that remains true in this case. The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth." Intuit plans to hire in engineering, product and customer facing roles and offset the layoffs. Intuit's bets are genAI, growing its expert platform and disrupting the midmarket.
??♀??OpenAI's startup fund and Arianna Huffington's Thrive Global launched Thrive AI Health. The idea is to create a "hyper-personalized AI health coach" that will better manage long-term health issues and "scale behavior change." DeCarlos Love, a Google product lead, will be CEO of the new company. Love led sensors, AI & ML algorithms as well as health and fitness experiences across all devices and platforms.
?? AMD said it will acquire Silo AI for $665 million in cash in a deal that advances the company's efforts to broaden its generative AI ecosystem. Silo AI, the largest private AI lab in Europe, will give AMD a team of AI scientists and engineers, tailored AI models and the ability to build out an enterprise ecosystem
?? Samsung launched its Galaxy Z Fold6 and Z Flip6 . The big takeaway is that the Z Flip6 camera has new 50MP Wide and 12MP Ultra-wide sensors. I've owned two Samsung Flips and the camera was the big tradeoff for a compact size.
??Generative AI models are going to have a big training data issue as public web access becomes more restricted and it's unclear whether large language models (LLMs) will be able to avoid the garbage in, garbage out issue.
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