{"id":1913,"date":"2024-09-24T18:43:22","date_gmt":"2024-09-24T18:43:22","guid":{"rendered":"https:\/\/global.craft.co\/?p=1913"},"modified":"2024-09-24T21:37:15","modified_gmt":"2024-09-24T21:37:15","slug":"how-enterprises-and-startups-can-partner-in-the-age-of-ai","status":"publish","type":"post","link":"https:\/\/global.craft.co\/blog\/how-enterprises-and-startups-can-partner-in-the-age-of-ai\/","title":{"rendered":"How Enterprises and Startups can Partner in the Age of AI"},"content":{"rendered":"

Once again, everything in technology is changing. In 2011, Marc Andreessen wrote \u201c<\/span>Software is eating the world<\/span><\/a>.\u201d Now <\/span>AI is eating software \u00b9<\/span>,<\/span> as technology adoption, usage, and enterprise buying behavior change rapidly, driven by startling new capabilities of, and as yet unanswered questions around, AI.<\/span><\/p>\n

It has been 22 months since OpenAI launched ChatGPT and sparked the Generative AI wave. The field has already evolved in several discrete steps, from initially text answers to prompts, then multi-modal input \/ output, to more complete Agents, which make it possible to program a whole sequence of actions. Agents can process complex workflows and tasks, such as building a prototype of an entire web application in just a few minutes, although the jury is out on how usable or complete the application will be. Whatever the limitations, the next model will improve on the prior results in a shockingly short space of time. OpenAI\u2019s most recent model, o1, released only 4 months after the prior model GPT-4o, evaluates and improves itself, demonstrating high scores on ever more complex thought processes.<\/span><\/p>\n

This rapid evolution raises questions for leaders and employees at enterprises:\u00a0<\/span><\/p>\n

What can I do with AI? What should I do with AI? What should I stop doing without AI?\u00a0\u00a0<\/span><\/i><\/p>\n

And as to each of these questions: <\/span>how do we manage AI\u2019s troubling lack of reliability? (i.e. how can I rely on its outputs?)<\/span><\/i><\/p>\n

The pendulum swings.<\/span><\/p>\n

As enterprises grapple with these and other questions, the Chief Technology Officer and Chief Information Officer suddenly find themselves at the center of technology strategy again. Over a decade, buying power decentralized out to the business lines as \u201cvertical SaaS\u201d companies, targeting specific enterprise functions, worked to erode the obstructionism of IT departments, and sold directly to line of business buyers unsatisfied with what internal IT delivered.\u00a0\u00a0<\/span><\/p>\n

Now, the pendulum is swinging back. The technology strategy is now an AI strategy which requires a unified approach, and increasingly comes with an AI governance committee that must approve any technology that includes AI.\u00a0\u00a0<\/span><\/p>\n

The software budget is increasing. Most companies expect to increase AI spending in 2025 by 22% on average, according to ICONIQ Growth\u2019s GenAI survey, June 2024.\u00a0 We understand budget is being found in reduced headcount across the enterprise, reduced spend on SaaS, especially per seat licensed SaaS, and reduced spend on Data.<\/span><\/p>\n

What should we do?<\/span><\/h2>\n

Enterprises \u2013 see AI as a force-multiplier, not yet a fully fledged solution to automate broad business processes. Consider AI implementation a journey and an accelerant on that journey, not so much a destination.\u00a0\u00a0<\/span><\/p>\n

Pick technology partners who bring <\/span>both<\/i><\/b> domain expertise to solve your real business problems, <\/span>and<\/i><\/b> are applying AI in their solutions in a high-quality way. This ensures your organization is learning from cutting edge innovators, and that you are driving your AI strategy with innovation partners as part of it, not peripheral to it.<\/span><\/p>\n

Startups \u2013 the window is finite. If you are not experimenting every day with ways in which new AI tools can increase quality and efficiency of software-driven processes and workflows, your competitors surely are. Speak to both Line of business and IT at your customers. Articulate how your solution is part of their AI future.\u00a0\u00a0<\/span><\/p>\n

Meanwhile, ask every single person in your company (from the janitor to the CTO) to experiment with AI tools. When ChatGPT launched, even OpenAI was stunned by the results. In this exciting new world, the next \u201ca ha!\u201d could truly come from anywhere!<\/span><\/p>\n

 <\/p>\n

Ilya Levtov<\/span><\/p>\n

Founder and CEO, Craft<\/span><\/p>\n

 <\/p>\n

\u00b9 Note: AI is mostly software, but not all software is AI.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Once again, everything in technology is changing. In 2011, Marc Andreessen wrote \u201cSoftware is eating the world.\u201d Now AI is eating software \u00b9, as technology adoption, usage, and enterprise buying behavior change rapidly, driven by startling new capabilities of, and […]<\/p>\n","protected":false},"author":7,"featured_media":1918,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"class_list":["post-1913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-trends"],"acf":[],"yoast_head":"\nHow Enterprises and Startups can Partner in the Age of AI | Craft.co<\/title>\n<meta name=\"description\" content=\"Discover how AI is reshaping enterprise technology strategy, driving changes in software development and governance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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