Decidr

AI may seem new, but it’s already undergoing a significant transformation.

What we’re seeing is a move from ‘narrow AI’ to ‘broad AI’, which encompasses a much wider range of capabilities that are more relevant to the future of business. This evolution is set to finally shake up the tired SaaS landscape, compelling business giants, startups and SMEs to adapt their strategies or be left behind.

The transition from narrow AI to broad AI

Historically, narrow AI has dominated the AI landscape.

Narrow AI focuses on specific, singular tasks like recommendation algorithms in streaming services or fraud detection in financial institutions. It also covers what most SaaS and big tech companies are selling right now: chatbots answering questions, generating meeting summaries and other admin-adjacent tasks.

These narrow AI applications have been integral to the success of many SaaS platforms. And there’s no doubt that they have been incredibly useful for streamlining tasks and workflow management.

A perfect example is Salesforce’s Einstein AI, which helps businesses with predictive analytics and customer insights to compliment its previously-existing CRM platform.

However, the shift towards broad AI is already underway, and with it comes an ability to handle a wider and more deeply integrated array of tasks that span across business teams.

Another name for broad AI is artificial general intelligence (AGI), and this is because it aims to replicate human cognitive abilities across multiple areas.

This transition marks a significant milestone in the AI journey — one that’s comparable to the managerial revolution of the 1960s when early stage software began automating complex business processes. And much like 60 years ago, the rise of broad AI has significant implications for the business sector.

AI market dynamics and strategic moves from tech giants

SaaS giants are integrating generative AI features into their existing platforms to enhance their ecosystems, retain their customer base and scramble for market share.

Cloud companies are also expanding their dominance in AI infrastructure. Amazon Web Services (AWS) already provides a platform for AI and machine learning, enabling businesses to build, train and deploy AI models at scale.

All of this is only going to continue as SaaS companies face growing pressure on their business models due to generative AI, which is transforming how software is developed, marketed and used.

The investment and innovation in AI operating systems are redefining the software landscape, with broad AI emerging as the end game. We can see this through the sheer amount of VC dollars being thrown at AI startups.

In March Scale AI received a US$1 billion investment, doubling its valuation to US$13.8 billion.

But venture capitalists weren’t the only investors. The round also saw participation from Amazon and Meta. Looking down the investor list, you’ll also find AI hardware makers NVIDIA and AMD.

Some AI startups are also seeing incredible success by leveraging open APIs and large language models to innovate.

A leader in this space is Hugging Face, an AI development platform based entirely upon open source tools and science. The company raised US$235 million in 2023… and its investors included Salesforce and NVIDIA.

Tech and SaaS titans are investing heavily in AI research and development to maintain their market positions. We saw this a decade ago when Google acquired DeepMind. Eventually it merged it with its Brain division to become Google Deepmind in 2023.

Microsoft has also done this with its US$13 billion investment in OpenAI, which led to the integration of the startup’s GPT model into MS Office suite. This allows for advanced text generation and automation features.

This has been beefed up further with Microsoft’s Copilot, which is supported by the latest GPT-4o model and the announcement of its new AI-powered PCs.

Broad AI vs. narrow AI: Redefining the competitive landscape

Narrow AI applications are clearly having a significant impact on the world. However, there’s a reason why it’s also considered to be ‘weak’ AI.

While its popularity continues to grow, narrow AI is beginning to be complemented — and in some cases, overshadowed — by the capabilities of Broad AI.

And rightly so, when you consider that AI infrastructure as a service is estimated to be worth US$247 billion by 2032.

But simply throwing some generative AI into the mix isn’t a long term solution.

Traditional SaaS businesses that rely on retrofitting narrow AI risk obsolescence. Broad AI systems are already evolving to perform specialised tasks more efficiently and accurately.

Broad AI is emerging as the end game, with B2B AI operating systems poised to replace traditional software.

Those who are embracing broad AI are pioneering new applications, exploring untapped markets and reinventing products and services. They know that solving individual business problems with AI isn’t the way forward. Embracing this technology fully and prioritising the redesign of technological infrastructure, UI and UX will be key to remaining relevant in the business sector of the near-future.

Broad AI will become the new normal

Looking ahead, the evolution towards broad AI represents the future of software.

Microsoft co-founder Bill Gates acknowledged this in 2023, saying:

“Generative AI has the potential to change the world in ways that we can’t even imagine. It has the power to create new ideas, products, and services that will make our lives easier, more productive, and more creative. It also has the potential to solve some of the world’s biggest problems, such as climate change, poverty, and disease.”

Importantly, he didn’t say to build on old ideas and products. He specifically called out AI’s potential for something new.

Companies like Decidr are leading this charge, developing AI operating systems that not only integrate seamlessly into business workflows, but connect them. These systems will not only automate routine tasks but also provide strategic insights, driving business growth and innovation.

As broad AI continues to evolve, it will trample the old SaaS landscape, offering unprecedented opportunities for growth. Companies that embrace this transition and invest in broad AI solutions will be well-positioned to thrive, not merely survive, in the new world of business operations.