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Executives say they're not ready for AI
PLUS: 📉 Carta's Nasdaq dream crumbles
Wishu
January 16, 2024
Hello👋 Snap CEO Evan Spiegel declares the death of social media in a post-holiday note to employees, asserting that Snapchat is on the brink of transcending smartphones, while criticizing rivals, including Meta's Facebook and Instagram, as well as the X platform formerly known as Twitter.
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5 major headlines
💬 Microsoft has unveiled new AI subscription services, including the $20-per-month Copilot Pro, granting individuals and small businesses access to advanced tools such as custom chatbots, previously reserved for larger organizations, while also highlighting competition with OpenAI's ChatGPT Plus.
🤖 Experiencing glitches on YouTube? Some users claim the platform targets AdBlock users with performance issues, including freezing desktop players and high CPU usage, though YouTube denies it; our tests reveal that switching to alternative ad blockers like Ublock or Ghostery resolved the problems, contradicting the alleged targeting.
👩💻 OpenAI unveils initiatives to combat misinformation and abuse ahead of the 2024 elections globally, implementing verified news and image authenticity programs, digital credentials, and a "provenance classifier" to address the unprecedented challenges of generative AI technology.
🍎 In a historic shift, Apple surpasses Samsung in global smartphone shipments for the first time, with IDC and Canalys reporting that Apple secured the top spot in 2023, ending Samsung's decade-long dominance, while facing competition from other Android manufacturers and demonstrating resilience in the premium device market.
💸 In a strategic move, Elon Musk secures a win for his social media platform X as YouTube sensation MrBeast posts his first video on the platform, showcasing Musk's efforts to attract influential creators amid X's bid to compete with YouTube.
🤖 AI reality check for executives: Not ready for the future
🔍 Key Findings:
Preparedness gap: Just 1 in 5 executives feel "highly" or "very highly" prepared for AI challenges in their organizations.
Educational shortfalls: Only 47% believe employees are adequately educated about AI.
Tactical focus: Majority of executives prioritize AI for efficiency and cost-cutting, missing out on potential growth opportunities.
💬 Expert Insight: Joe Ucuzoglu, Deloitte Global CEO
"Treating AI as a side initiative is a massive failure. We need an ecosystem mindset. Talent scarcity means we can't have all the expertise in-house."
🚀 What's Next: A Call to Shift from Tactical to Strategic AI Adoption
As the World Economic Forum unfolds in Davos, it's clear that executives must pivot to a holistic approach, embracing AI's transformative potential for sustained success. Stay tuned for updates on navigating the evolving AI landscape.
🤖 AI-enhanced services: The future of innovation
In the age of AI, startups eyeing success should pivot towards AI-enabled service companies, leaving standalone copilots behind. Building from scratch, these businesses integrate AI into every workflow, disrupting industries with proprietary data and in-house software for enhanced efficiency.
Building defensible advantages: Founders create defensible positions by fine-tuning AI models with proprietary data and empowering staff with in-house software. This approach allows startups to disrupt established players with lower prices, capturing substantial market share.
Law firms reimagined: Rather than selling copilots to law firms, the strategy is to establish a law firm designed for the AI era. Utilizing AI internally enables supercharged lawyers to handle more efficiently, offering comparable legal services at a fraction of traditional costs.
Financial services: A new playbook: In financial services, the game-changing move is to start an AI-enabled firm from scratch. This model combines the personal touch of large banks with the cost-effectiveness of robo-advisers, delivering a differentiated, high-touch, low-price service.
Investor appeal and economic vision: AI-enabled services attract founders due to low capital requirements and established demand. Despite investor reservations, AI efficiencies promise competitive gross margins. These businesses may not chase trillion-dollar valuations but present low-risk bets for early-stage investors.
Equity and access vision: The broader vision is to make services more accessible through AI efficiencies. Education, health, financial, legal, and consulting services could become more affordable, promising a more equitable future. This vision has inspired entrepreneurs, like the author who recently left a nine-year tenure to start an AI-enabled health services business, drawn by the compelling combination of low capital needs, proven demand, and a clear path to increasing access to health services.
Crisis at Carta: How Henry Ward’s dream of a Nasdaq for private startups died
Henry Ward's vision of a startup exchange, the "Nasdaq for private markets," turned into a nightmare as Carta faced a widening customer revolt. Accusations of using private information without consent prompted Ward to close the exchange, admitting to a breach by an employee.
💡 Key Points:
Carta's annual recurring revenue hit $365 million, but growth concerns emerge with a 3% increase from Q2.
IPO dreams shift to a conventional IPO, as Carta considers a market departure.
Data handling issues and a tarnished reputation fuel customer discontent.
Once valued at $7.4 billion, Carta's likely valuation drops to $3 billion.
🔍 Implications and Lessons:
Carta grapples with trust issues and fierce competition.
A shift to selling software to private equity firms aims to revive growth.
In a landscape of heightened scrutiny, Carta faces the challenge of rebuilding its legacy and earning back customer loyalty.
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