Hype or notthe potential of AI has charmed tech companies, and companies large and small have begun to bet heavily on efforts that use AI in one way or another to drive their growth to new heights.
These bets come in many forms. Companies like PwC and Accenture have pledged to spend heavily on the sector, while others are creating new AI-focused capital pools and investing directly in AI-focused startups. A large number of technology companies are now also drawing on their operating cash flow to add AI to their existing products and services.
There is an all-encompassing race to use AI to add more usability and value to products, as well as harvest some of the resulting demand for AI-powered products and services.
It appears that this sector is resilient to the broader macroeconomic headwinds that have impacted deal-making and fundraising in the tech world. If deal-making trends continue, this year could see the third-highest number of deals completed by expansion-stage AI startups, according to Deloitte’s latest Road to Next report.
Investors are also paying attention, and almost every technology company’s quarterly results conference call was full of analysts asking how the company in question will find growth or operational leverage with AI-related tooling.
todaybusinessupdates.com wrote earlier this year that a tech company’s AI attitude was one of the most important measures of their current value. That has only become truer since then.
This afternoon, we’re sorting through key promises, investments, and some product news to underline just how broad the AI push has been in the larger enterprise software space.
Is the current AI boom a startup story? Yes. It’s a Big Tech story? Yes. Are we seeing a whole new generation of software being built and sold? Yes. Let’s see how broad the AI moment really is.
Big checks, big bets
These days it almost seems obvious that Microsoft in 2019 put down $1 billion in OpenAI for licensing its technology and building a custom one super computer in the Azure cloud. The figure was later eclipsed by $10 billion regulation between the companies, but Redmond did help set the tone for how much capital would flow – and perhaps how much the industry would need – into AI-related work.