Why Investors Should Focus More On The Infrastructure Supporting The AI Revolution
Guest Post by Basil Alomary
AI has been heralded as the catalyst for a new industrial revolution. While the potential for massive impact is very real, venture investors looking to capitalize on growth ought to spend more time considering the enabling infrastructure.
Although applications are myriad and diverse, from drug discovery to driverless cars, practical adoption in the enterprise has been lackluster. Only 1 in 20 business leaders would describe their companies as “implementing AI widely across the organization.”
The starting point for identifying these investment opportunities is the deconstruction of the AI workflow—extracting each step in the process, from aggregation to deployment and seeking efficiency, scale and access.
An infrastructure-first approach to investing has the potential to yield greater venture returns with a lower risk profile. Looking at the smartphone market, for example, it’s unlikely that an investor in 2005 could have accurately projected that today Google, an internet search engine, would have a mobile business that is 5x larger than Nokia’s. That said, making broad investments in major chip manufacturers would have accurately identified Qualcomm as being a provider whose parts have supported the rise in mobile technology.
Innovations in AI are exciting, but it’s less difficult to identify and bet on, the technologies supporting AI rather than predicting who will provide the voice assistant of the future. The starting point for identifying these investment opportunities is the deconstruction of the AI workflow—extracting each step in the process, from aggregation to deployment and seeking efficiency, scale and access.
What does it mean to operationalize AI?