Economic sectors worth trillions of dollars will be fundamentally transformed and benefit from advances in AI.
Since its appearance at the end of 2022, ChatGPT has highlighted the immense potential of artificial intelligence (AI). Indeed, for the first time, human beings could directly communicate with machines using their own language, without having to go through coding. In just a few months, thanks to the keen curiosity it aroused, ChatGPT managed to reach more than 100 million users. But despite this success with consumers, its large-scale commercial use still seemed very far away. This led to some skepticism about AI: wasn’t it just another craze for a new technology?
However, in the months since the emergence of ChatGPT, leading companies such as OpenAI, Anthropic and Google have increased their efforts to improve their models in an effort to achieve a dominant position in the field of AI . And although the first demonstrations of the capabilities of this new technology were impressive, putting it into practice often seemed laborious.
Even the slightest increase in productivity can enable companies specializing in software development to make considerable cost savings or move towards new business opportunities.
However, some 18 months later, its applications prove to be numerous and are likely to be implemented on a very large scale in different markets. This development, which has gone relatively unnoticed, represents extraordinary opportunities for companies in terms of their revenues or in terms of optimizing their costs, or even a combination of the two.
Revolution among programmers
Software developers were among the first to realize the potential of AI. Given ChatGPT’s language skills, it seemed logical to use this tool for computer coding, which is one of the most documented and well-structured languages in the world. Thus, the Copilot from GitHub (Microsoft), a pioneer in the sector, makes it possible to increase programming speed by 55%, which makes it possible to obtain better quality and more extensive code. And multimodal goes even further: all it takes is an image extracted from a website for ChatGPT to be able to write the code that will perfectly reproduce the layout and functionalities of this site.
These results are important given the size of the programming market, which is expressed in trillions of dollars. Furthermore, the shortage of programmers is great and it affects the whole world. Therefore, even the slightest increase in productivity can enable companies specializing in software development to make considerable cost savings or to move towards new business opportunities thanks to a strengthening of their research & development. . In the future, the existence of AI should therefore lead to an increased use of software.
Customer service automation
Beyond programming, the impact of AI will also be felt in customer service. Take the example of Klarna: this fintech announced last February that its AI assistant, powered by OpenAI, had managed 2.3 million conversations during its first month of activity. However, this volume corresponds to the activity deployed by 700 full-time employees!
AI drove 2/3 of customer interactions. She achieved customer satisfaction ratings similar to those of human responders and was able to resolve issues in less than 2 minutes, compared to the 11 minutes it previously took. Thanks to these improvements, Klarna, which operates 24 hours a day and in 35 different languages, expects additional annual profits of $40 million. AI is therefore expected to result in considerable disruption (and a tremendous gain in efficiency) in a customer service market whose value is estimated at $300 billion.
Content creation and personalization
Image creation was one of the first applications of generative AI, but it is still evolving very quickly. It has become much easier to create, modify or improve digital content so that the productivity of designers has greatly increased. However, this is a market whose volume is expressed in hundreds of billions.
For example, Facebook and Amazon offer their advertisers the ability to create multiple versions of their ads or product listings using generative AI. By improving the personalization of their offers, they obtain higher click-through rates. This is beneficial in terms of monetization and helps stimulate the growth of “tech” giants.
The Beyond of Recommendation Engines
Recommendation engines, such as those used by Facebook or Netflix, have significantly increased user engagement on social platforms. Currently, almost half of the content offered to their users is generated by AI and it can be highly individualized thanks to the user’s profile and behavior. However, personalized content means increased user satisfaction, increased time spent on the platform and, ultimately, increased monetization opportunities.
At the forefront: autonomous driving
But the potential of generative AI goes far beyond traditional markets: it truly creates new ones. Thus, in view of the excellent results of the first uses of the “Large Language Model” (automatic learning models capable of understanding and generating texts in human language) in autonomous driving, Tesla decided to replace its ten-year-old programming base years by this new tool. The result of this change, FSD v12, represents a considerable advance, because according to Tesla, the latter makes it possible to divide the number of interventions by 100. This innovation portends a profound transformation of the mobility market which, in the broad sense, represents a volume of more than 200 billion dollars.
The list of examples given above is far from exhaustive and we have not mentioned the numerous feasibility studies carried out by companies which have large proprietary databases and which should soon reach the commercialization stage. Regardless, the uses of AI already clearly show the extent of the productivity gains that will be achieved in various sectors. It is by building on this progress that investors will be able to take advantage of the structural trends underlying the transformative potential of AI.
