Andreessen Horowitz (a16z) published a great summary of the 16 changes to how enterprises build and buy generative AI in 2024.
The two main takeaways for me:
1) Average enterprise spend on LLMs will go from $7M in 2023 to $18M in 2024, a 2.5x increase
2) Only 40% of enterprises are focused on measuring ROI on LLM spend, and 60% are not measuring or considering ROI at all.
Here’s a summary of all the 16 changes:
- “Budgets for generative AI are skyrocketing.”
- “Leaders are starting to reallocate AI investments to recurring software budget lines.”
- “Measuring ROI is still an art and a science.”
- “Implementing and scaling generative AI requires the right technical talent, which currently isn’t in-house for many enterprises.”
- “A multi-model future.”
- “Open source is booming.”
- “While cost factored into open source appeal, it ranked below control and customization as key selection criteria.”
- “Desire for control stems from sensitive use cases and enterprise data security concerns.”
- “Leaders generally customize models through fine-tuning instead of building models from scratch.”
- “Cloud is still highly influential in model purchasing decisions.”
- “Customers still care about early-to-market features.”
- “Most enterprises think model performance is converging.”
- “Optimizing for optionality.”
- “Enterprises are building, not buying, apps—for now.”
- “Enterprises are excited about internal use cases but remain more cautious about external ones.”
- “Total spend on model APIs and fine-tuning will grow to over $5B run-rate by the end of 2024, and enterprise spend will make up a significant part of that opportunity.”
Click here to check out their full article about those changes (worth reading).
A Resource with 100+ AI Business Tools (Bookmark This)
One thing that’s been super hard (and frustrating) for me to do is keep track of all the AI tools that keep popping up.
So, I started putting together a list of those tools to help you manage your business and increase productivity.
I’ve published the list on my website and categorized them into functional categories to keep things simple.
Click here to check out my Ultimate List of AI Tools for Business and Productivity
Two things:
- Make sure you bookmark the link because I’ll be updating it often
- If you think I’m missing a tool, please email me and let me know. I’ll be happy to add it.
One Prompt You Can Use at Work Today
Here’s a practical ChatGPT Prompt you can use at work:
We are planning a [event type] on [date], at [location]. Create an announcement to [goal].
For example,
We are planning a team-building event on June 9th, at the local bowling alley. Create an announcement to encourage employees to participate.
If you would like to see more of those prompts, check out my free book called: ChatGPT for Better Business Communication.
You can grab it for free by clicking the link and subscribing to the newsletter.
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