Last week I was at London for the Startup Grind Europe conference, with my friends from the Barcelona Chapter and many entrepreneurs from the awesome global community of Startup Grind.
The main event was an interview between Startup Grind CEO Derek Andersen and Alphabet (formerly named Google) executive chairman Eric Schmidt.
The most interesting part of the interview came in the second half, when Eric Schmidt made a very interesting prediction about what the great companies will be like five years from now.
The prediction was that in addition to mobile platforms and cloud computing, the next $100bn companies will find a way to get millions of users to teach them, learn from that information using machine learning, and then sell a service that it’s better than the individual knowledge of the users.
This prediction makes a lot of sense from both an engineering & business perspective, as it leverages current technology to collect and process cheap information with minimal costs, that can easily be sold later thanks to the direct access to customers that mobile platforms provide.
But, in my opinion, this approach overlooks 2 critical points:
And even more important, it misses a much bigger business opportunity:
The perfect image to illustrate this is the iceberg. What we know is the tip (what we can see), and what we don’t know is the rest of iceberg hidden below water level.
Tracking data and aggregating information to accumulate knowledge, and building AI that do the jobs currently performed by humans isn’t revolutionary, it’s just an expected market evolution.
The companies that will generate huge businesses in the following 5 years will need to go several steps ahead, creating new ways to solve problems that will completely transform markets and industries, and doing things that aren’t expected to happen until 20 years or more from now.
Who thinks it’s possible to build an AI in a few months that not only understands human relationships and could accurately predict with whom you will connect and develop a meaningful relationship, but it will also be able to predict how you will evolve in the following years, knowing what most of your future needs will be?
This are the characteristics that will define the next tech titans:
In the next years we’ll see at least 3 completely new $500bn companies be born, probably 5. In case you’re wondering, these companies’ growth won’t be just the result of expanding markets, it will be also the result of wiping out the incumbents.
Thanks for reading and sharing.
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