Artificial Intelligence for Big Players Only

Will Artificial Intelligence be a big competitive advantage for the big digital companies only?

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AI for Big Players Only Norbert Biedrzycki

Digital data is the lifeblood of companies like Google, Facebook, and Amazon that deal with customers almost completely online. They live and die on this data, using it to improve the way they interact with customers every day. Such companies can afford to run big, expensive and complex data processing operations that crunch billions of pieces of data on what their online viewers are clicking on, viewing, writing about, and purchasing.

Because they deal with much larger volumes of data than the average company (which does not do the vast majority of its customers interactions online), Google, Facebook and Amazon can do lots of experimentation with much smaller volumes of data. They can work on insufficient data sets and pre-production/test versions of systems. Then they can modify them, introduce new ones, and unleash new online innovations that keep their customers in tow.

That is how these firms have been able to monopolize their markets. Google sites had 63% share of the U.S search engine market in early 2017, according to market researcher Statista. Facebook was on track to gain 78% of the U.S. social media advertising market in 2017, according to Statista. And Amazon’s share of U.S. e-commerce sales (43.5%) is six times the next biggest player’s (eBay, at 6.8%), says eMarketer.

That brings us to the topic of artificial intelligence. To be able to use AI well, a company must have a huge amount of digital data. Small companies, including startups, can have great ideas for new businesses that run on AI. But they have a huge data disadvantage when they compete against the big digital players.

Which makes me wonder: Will AI be a big competitive advantage for the big digital companies only?

 

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13 comments

  1. TomK

    it is only matter of time and broader cloud adoption when any size company will be able to benefit and effectively compete in that space

    • Norbert Biedrzycki  

      cloud as a enabler for AI propagation?

  2. Tom Jonezz

    At them moment I think so. In the future… think of who knew Google 20 y ago and FB 15? And what about China speed and expansion? Disruption may happen in just 5 y from now.

    • Norbert Biedrzycki  

      Who is going to lead the race? And should we be afraid of super intelligence?

  3. Adam Spark Two

    At the moment – yes. But I belive that in next few years AI will be available as lot of SaaS platforms for specific purposes also for medium/small companies.

  4. Adam Spikey

    From one who has only a layman’s level of computer knowledge, over thirty years of self-taught kludging, I have seen the collapse of the first Tech bubble, the market crash of ten years ago, and am now trying to weigh the best options to balance our retirement funds so as to protect best leading in to what I expect to be the next economic decline. I don’t worry as much about outright crashes immediately, but do foresee how too much blind infatuation with cryptocurrencies, as well as the consequences for global governments and institutions, could create massive problems, should wide adoption compromise established systems for taxation and security.

    • Adam Spark Two

      The goverment in a developed country will know much more than GAF, esspecially about your finance and health. In general big player can more but… it must have a will to act. Big and fat cats will always give place to those who are hungry. In my humble opinion AI will give us new big players coming from merge of government data and private innovation.