Prolonging the AI Spring for Entrepreneurs, VCs, and Corporations

The current AI spring is in full swing. Entrepreneurs remain extremely excited about generative AI, as manifested by the number of financing requests our firm and many other investors continue to receive but are starting to think more diligently about where the white space they can go after. Corporations are in testing and evaluation mode as they formulate, or reformulate, AI strategies and assess the impact that generative AI will have on their business. Venture investors remain upbeat about the sector but are also concerned about four issues.

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The OEMs’ Dilemma with Software-Defined Vehicles

Automakers are facing a complex dilemma relating to software-defined new energy vehicles. Should they proceed with aggressively investing and developing software-defined vehicles while facing a slowdown in demand for battery electric vehicles (BEVs), or continue developing Internal Combustion Engine (ICE) and hybrid vehicles (including plug-in hybrids) that are based on existing architectures and practices?

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Enterprises Finding Value With Generative AI

Enterprises use several different technologies, including AI, to automate their processes and create value. They are currently experimenting with generative AI to determine whether it can provide significant and enduring value. Is the enterprise’s excitement about generative AI justified? Is the size of the investments being made and planned warranted? What is their strategy missing and should be in their action plan?

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2024 Enterprise AI Themes

Since the beginning of last year, the interest in AI has gone into overdrive. Enterprises tried to “out-announce” one another regarding their use of AI. Similarly, venture investors have been investing large sums at nosebleed valuations in startups developing anything that appears to involve generative AI. But, despite the corporate statements and the venture investments, the adoption and deployment of AI, and more specifically generative AI by the enterprise, are still in the very early stages.

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