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System of intelligence — generative AI at the app layer | TechCrunch

Dec 09, 2023 - news.bensbites.co
The article discusses the transformative potential of generative AI in the enterprise technology stack. It outlines three waves of generative AI applications: the first wave includes lightweight tools built on top of generative models, the second wave integrates structured and unstructured data from system-of-record and system-of-engagement applications, and the third wave introduces a defensible "system of intelligence" layer. This layer will harness existing capabilities to create novel product offerings and workflows, and generate new structured and unstructured data to enhance product experiences.

The author emphasizes that successful system-of-intelligence products will deeply integrate with company workflows, effectively characterize and digest data, and create data feedback loops. These products must provide enduring value to survive budget cuts and competition from incumbents integrating generative AI into their products. The rapid transformation of the AI space, proliferation of open source models, and evolution of proprietary models present opportunities for founders to build enduring system-of-intelligence products with significant impact on enterprises.

Key takeaways:

  • Generative AI is causing a paradigm shift in technology, leading to a massive shift in enterprise spend and transforming the layers of the enterprise technology stack.
  • As generative AI shapes the next generation of application products, a more sweeping evolution can be expected, with the emergence of 'system of intelligence' layer.
  • These 'system of intelligence' products will need to have deep integration with company workflows, be sophisticated around the characterization and digestion of data, and create data feedback loops to enhance the product experience.
  • The transformation of the AI space has accelerated over the last 12 months, and it's up to founders to build enduring system-of-intelligence products atop this rapidly shifting landscape.
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