How Small Businesses Will Leverage Data And AI Products To Take Out Incumbents
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Massive Business Losses
2023 is the year most businesses realize the scope of opportunities and risks. Most won't move soon enough, and those businesses will not survive. It's a hard reality, and I apologize. This isn't something I would wish on anyone; to be working at a company in its last two years of existence.
That's where we are, and the business losses will be hard to imagine until they are upon us. We haven't seen companies fail in large numbers for a long time. For some, it's long overdue. We have been in an unprecedented time where businesses and startups have survived by living on easy monetary policy. Companies are failing in place due to stagnation or business models that weren't viable in the first place, but that's not what this article is about.
Others will be put under by data and AI products. Massive business losses is a bold thesis, and I should explain myself. Businesses of all sizes have access to opportunities and exposure to risks from data and AI products. That's been true for a while, but the next 2 years are set up for the wave to finally break.
What Happens When Everyone Figures Out The Data?
Data and AI products level playing fields like few others have before. I worked with a small business a couple of years ago that was doing photo processing. It sounds boring, right? Most of their business was wedding photos and videos. They had a staff of professionals who handled the editing. Over time, the company developed its own digital tools ecosystem.
The founders became interested in machine learning and realized they could use the data they were gathering to automate some editing workflows. These data products weren't being built at a high-tech company or leveraging an advanced platform. Their data team was a data analyst, a self-trained data engineer, and a data scientist. Over 18 months, they automated about 60% of the editing workflows.