Three business models for the AI age

Benjamin Koe
Sep 27, 2016 · 1 min read

Since we are on the edge of an AI revolution, I am therefore of the belief that there are only three broad business models that matter.

  1. Businesses that hire humans to do things AI can’t. But this is the worst of the three options as all they’re doing is buying time. AI will inevitably be able to do most, if not all, of human-skilled work.
  2. Businesses that own AI “workers”. They don’t necessarily have to build the AI but they own them. Companies like Uber will own fleets of autonomous cars, for example. Companies will also begin to optimize operations with AI “workers” and we will watch human teams shrink.
  3. Businesses that build the AI. These we can see today such as Google, Facebook, IBM, Microsoft, etc. They are also the enablers of businesses who will make use of their AI tools to build and own their own AI “workers”.

This is now the lens by which I look at investments, entrepreneurship, and employment.

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