Part 7/23:
The AI wave, however, promises to be different: by handling entire processes end-to-end, AI can substantially increase productivity, expanding markets and creating massive new economic value.
The Growth of AI-Enabled Solutions
Investors note AI companies are growing at a pace multiple times faster than traditional SaaS firms—Stripe's report notes a 3.6x faster growth rate, which compounds to an 11x difference over two years. These are unprecedented growth rates, fueled by technological innovation, talent, and the increasing realization that AI's utility extends across industries.
Understanding the Stack: From Energy to Applications
The AI ecosystem is conceptualized into a six-level stack:
- Energy: Fundamental technological progress.