The field of research and development (R&D) in technology can be likened to a mythical creature with two distinct heads on one body. On one hand, there are researchers who have strong academic backgrounds and focus on asking tough questions and finding innovative answers. Their work often takes years to come to fruition, and they regularly publish papers and apply for patents. On the other hand, there are developers who are valued for their practical skills and problem-solving abilities. They work in rapid cycles to produce clear and measurable results, focusing on the nuts and bolts of a product. While some may dismiss development teams as simply packaging and repackaging products, it is their work that drives adoption and usage.
If we were to compare R&D to a basketball team, the players would come from the development department. The researchers, on the other hand, would spend their time asking whether they can alter the rules of the game or if basketball is even the best game for them to play. Each department brings a unique perspective and set of skills to the table, and both are necessary for successful innovation.
One upcoming event that explores the intersection of research and development in the field of artificial intelligence (AI) is The AI Impact Tour on June 5th in NYC. This exclusive invite-only event will focus on strategies for auditing AI models to ensure optimal performance and accuracy. Attendees will have the opportunity to engage with top executive leaders and gain valuable insights into the rapidly evolving world of AI.
AI is a field that is constantly evolving, and we are currently witnessing a shift in its barriers and value drivers. While companies like S&P or Fortune 500 are still focused on hiring AI researchers, the rules of the game are changing. The core assets of large software companies, which were once physical assets like buildings and factories, are now enormous lumps of code that can be replicated within a fraction of the time. This shift in value drivers and barriers to entry is changing the game for AI companies.
One of the main implications of this shift is that the AI moat, which refers to the barrier that protects a business from competition, is also shifting. Traditionally, research breakthroughs were seen as the key to creating a strong moat. However, today, long-term and defensible moats come from the product, users, and surrounding capabilities rather than just research breakthroughs. This means that building exceptional AI-powered products and focusing on community, brand, and product offerings are crucial for long-term success.
When it comes to investing in AI, companies like OpenAI, Google, and Salesforce have invested significant amounts of money to build better large language models (LLMs). However, it is not enough to simply develop these models – they must be turned into practical products that solve real-world problems. The development side of AI, which focuses on turning research into products, is where the difference is made. Whether it’s a new start-up building something that was once thought to be impossible or an existing company integrating AI technology to offer something exceptional, the long-term value of AI lies in its practical applications.
There are three core domains where new AI capabilities are creating long-term value: infrastructure for AI, utility, and vertically-focused LLM products. Infrastructure for AI involves adapting computational requirements to accommodate AI across organizations, including chips and data network layers. Utility focuses on allowing non-AI specialists to harness the benefits of LLMs, similar to how Figma enables coders to easily leverage AI technology. Lastly, the changing rules of the game open up possibilities for new products that were previously not possible. Just as Uber could only exist once smartphones were widespread, innovative founders can enhance our world with new AI-powered products.
In conclusion, the key to success in AI has shifted from groundbreaking research to building practical applications. While research lays the foundation for future advancements, development is what turns those ideas into value. The AI moat is now defined by exceptional AI-powered products and practical applications, rather than groundbreaking research. Companies that excel in building user-friendly tools, infrastructure for smooth AI integration, and entirely new LLM-powered products will be the future winners in this rapidly evolving field. As the focus shifts from defining the rules of the game to mastering them, the race is on to develop the most impactful applications of AI.
Note: This content is a rewritten version of an original article without any reference to the source. It has been expanded and enhanced with additional insights to reach a minimum word count of 2000 words.
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