Decidr

In 2023 NVIDIA CEO Jensen Huang expressed a bold opinion about generative AI.

“Generative AI is the single most significant platform transition in computing history. In the last 40 years, nothing has been this big. It's bigger than PC, it's bigger than mobile, and it's gonna be bigger than the internet, by far.”

Huang founded NVIDIA in 1993 — a company that would go on to invent the graphics processing unit (GPU). Until recent years this was mostly relevant to the gaming space. But GPU technology has since become integral to AI deployment across the globe.

And NVIDIA has been at the centre of it.

In Nvidia’s February 2024 earnings report, the company recorded US$22.1 billion in revenue, marking a 265% year-on-year increase. This impressive growth was accompanied by a 16% surge in its share price, reaching US$785.38.

Saying something will be bigger than the internet is a controversial take. But considering Huang’s track record, perhaps we should be listening.

The idea that AI is going to transform the business world is one that’s being thrown around a lot. But what does it actually mean?

With the market size projected to skyrocket to US$2.5 trillion by 2032, 'AI’ isn’t just a buzzword.

As we stand on the cusp of this technological revolution, it's crucial for businesses to understand and harness the power of AI to stay competitive.

The surge in AI adoption

According to PwC’s 2024 AI Business Predictions, over 54% of businesses the company surveyed have already embraced generative AI.

This rapid adoption is driven by the technology's accessibility and scalability, as well as its ability to enhance productivity and business operations across multiple teams and roles within a company.

AI isn’t just changing how businesses operate — it's redefining work structures from the executive level down to employees.

For leaders, AI offers advanced analytics and predictive capabilities that enhance strategic planning and decision making. For employees, AI tools can automate routine tasks, allowing them to focus on more complex and creative projects.

This shift not only boosts productivity, which is great for businesses, but also enhances job satisfaction and innovation, which is great for your team and for retention.

And the proof is in the demand. Bloomberg Intelligence estimates that the demand for GenAI products could result in US$280 billion in new software revenue.

Old school SaaS is expected to go out the window in favour of ‘AI infrastructure as a service’ which by 2032 is estimated to net US$247 billion. This product category will be used for the training of large language models (LLMs), digital ads and specialised GenAI assistants.

To be clear, this is already happening.

The transformative magic that AI offers has resulted in an AI arms race between US tech giants like AWS, Microsoft and Google — all hoping to dominate the market share.

But it’s not just these household names that are benefiting. Stanford’s HAI report shows that US$25.2 billion was invested in generative AI startups in 2023 — almost nine times more than the previous year. And it’s not slowing down. A PitchBook report showed that US$25.87 billion in VC dollars have gone to AI startups across the globe in Q1 2024. This was up from US$21.69 billion the previous year.

Government’s across the globe are also supporting AI adoption.

In the 2023-24 federal budget $101.2 million across five year years was set aside to help Australian small businesses adopt AI and quantum tech into daily operations.

In December 2023 the government also announced a $17 million Artificial Intelligence Adopt Program that's being used to establish up to five AI Adopt centres. The program will offer eligible businesses free access to AI training to help them develop and manage AI.

With both the public and private sectors rallying behind AI, it’s crucial for businesses to understand its importance in their survival.

The competitive edge of AI

AI's transformative potential lies in its ability to provide companies with a significant competitive edge.

AI-powered tools and solutions enable companies to process vast amounts of data quickly and accurately, uncovering insights that drive growth and innovation.

According to Bloomberg Intelligence, the rising demand for generative AI products could add about $280 billion in new software revenue, driven by specialised assistants, new infrastructure products and copilots that accelerate coding and admin tasks.

Generative AI can also serve as the missing link for data integration, enabling seamless connectivity and interaction between previously disconnected data sources.

This capability is pivotal for businesses aiming to harness the full potential of their data. By integrating AI into their data ecosystems, companies can achieve more accurate forecasting, personalised customer experiences and innovative product development.

We’re already seeing how businesses are utilising AI to get an edge on their competitors.

Financial institutions like JPMorgan Chase use AI to detect and prevent fraud in real time, enhancing security and customer trust. It also has its own AI research program.

Netflix leverages AI and machine learning algorithms to recommend personalised content, boosting user engagement and retention. Amazon utilises AI for inventory management and optimising stock levels based on predicted demand to reduce costs and improve efficiency.

Building trust in AI

As AI becomes more integrated into business operations, maintaining this trust will be essential for long term success.

And there are a number of things to consider when it comes to building trust in AI.

Firstly, businesses need to establish robust ethical guidelines and ensure compliance with regulatory standards as they roll out globally. This will be particularly important for businesses operating across different countries.

In Australia, $39.9 million was set aside in the 2024-25 federal budget for the safe and responsible adoption of AI. $15.7 million is specifically for regulation and policy development.

There are also plans for an advisory board to determine the guardrails for high risk AI, with the government including business representatives so those deploying AI tools have a say in shaping the regulations.

Ensuring data privacy and security is another crucial aspect companies must consider, with AI storage projected to generate $93 billion by 2032.

Companies must also ensure transparency in their AI systems, providing clear explanations of how AI decisions are made. This builds confidence among stakeholders, from employees to customers and investors. This is particularly important because the market has seen an increase in ‘AI washing’ from businesses that are claiming to use the technology without any real or substantial implementation.

This has led to the US Securities and Exchange Commission (SEC) to fine two investment advisory firms. According to the regulator, they had allegedly made false statements regarding the use of AI in their forecasts.

While lying about use of AI is unethical, there’s no shame in utilising help. After all, most SMEs don’t have a dedicated IT department, let alone an AI expert.

That’s why working with experienced and reputable AI partners ensures that the technology is implemented effectively and ethically, safeguarding the company's reputation and customer trust. It also empowers employees to feel confident using the technology in their day-to-day operations.

A vision for the future

The informed prediction of Jensen Huang underscores the profound impact AI is set to have on the business landscape. The evolution of AI promises to be more transformative than the advent of the modern internet, ushering in a new era of innovation and efficiency.

In short, AI is poised not to improve the business world, but to revolutionise it.

The strategic adoption of AI can provide businesses with unparalleled competitive advantages, redefine work structures and drive the creation of innovative products and services.

As we navigate this exciting new world, building trust in AI and leveraging its full potential will be key to unlocking a future where AI seamlessly integrates with human decision making processes, enabling organisations and individuals to achieve their fullest potential.