- ARK Invest’s Brett Winton explores the potential for AI disruption among tech giants like Apple and Google
- AI shows the steepest cost decline of any technology in history, prompting rapid advancements
- Smaller companies can leverage disruptive AI technologies to compete with established players
The chief futurist of ARK Invest questioned whether Apple and Google can introduce high-performing AI elements with their current strategies.
ARK Invest: Apple and Google Will Leverage AI to Consolidate Their Dominance
According to ARK Invest, led by Cathie Wood, tech giants like Apple and Google’s parent company, Alphabet, will likely use artificial intelligence to maintain their dominant position in the industry. On October 1st, ARK published a whitepaper dedicated to the disruptive capabilities of AI, sharing its framework for identifying such technologies.
Written by ARK’s chief futurist, Brett Winton, the report explores how Big Tech companies are likely to strengthen their AI implementations to maintain their dominant position while also highlighting the potential failures of such strategies.
AI has the “steepest cost decline curve of any technology in history.”
Winton outlined three fundamental properties of disruptive tech platforms: strong cost reduction, penetration into new or underserved markets, and business models that delay monetization and may seem “financially unattractive.”
Disruptive technologies often enable smaller companies to compete with Big Tech, even when the industry giants recognize the potential of the technology and attempt to leverage it for commercial advantages.
According to Winton, AI is “definitely a disruptive technology,” with the “steepest cost reduction curve of any technology in history.”
He added, “The cost of operating AI models with equivalent performance has halved every four months, a trend we expect to continue throughout the decade.”
Winton compared the cost decline of AI to Moore’s Law in the semiconductor industry, which implies that semiconductor costs halve every 18-24 months. Data suggests that “the AI revolution is moving four to six times faster,” Winton claims.
Conclusion
In conclusion, ARK Invest’s chief futurist, Brett Winton, highlights how artificial intelligence represents a disruptive technology capable of radically transforming the competitive landscape in the tech sector.
With its ongoing cost reduction and the emergence of new market opportunities, companies like Apple and Google will need to adapt their strategies to maintain leadership.
However, the potential for competition from smaller entities remains high, suggesting a dynamic and innovative future in the field of AI.
