AI's Revolutionary Progress and Its Implications for the Future of Companies
AI is advancing at an extraordinary pace, and most people remain unaware of its true capabilities. I operate under the assumption that no matter how much I read and learn about AI daily, I am still behind the curve of what’s possible. What I’m about to discuss has already been achieved in various forms (wherever possible, I’ve included links), and the extrapolation is simply that these developments will become even better and truly viable in the near future. None of this requires true AGI, we simply need to make AI "a tiny bit better" than an average person.
The Virtual Company Revolution
Future companies will be founded by individuals or small groups who instantiate a virtual company. These companies will consist of fully virtualized employees, each with unique specialties and dispositions designed to maximize the chance of success. Every virtual employee will have individual memories and histories, allowing for iteration, continuous improvement, and the avoidance of repeated mistakes.
Human owners of these virtual companies will need access to seed capital. Knowledge work companies will find it cost prohibitive to staff highly skilled human employees as compared to the alternative, as a function of potential progress in a given year. Once operational, these virtual companies can function autonomously, with human founders acting as a decentralized autonomous organization (DAO) or a board of directors, conducting periodic reviews and offering strategic advice.
Autonomous Operations and Financial Independence
Virtual companies will independently manage assets, including cash, to fund their AI capabilities, run experiments, and evolve their missions. For this to work seamlessly, companies will rely on decentralized financial systems. Bitcoin is a prime example of a capital system outside government control, making it an ideal candidate for these operations.
To succeed, the majority (95%+) of a company’s operations will be virtualized, including:
- AI provisioning: Dynamically allocating computational resources.
- Knowledge specialization: Hiring AI agents in specific domains of expertise.
- Execution: Meeting objectives through automated workflows and smart systems.
- Subcontracting: Automating or virtualizing third-party work.
For instance, a virtual company requiring research could hire a virtual researcher to design experiments and produce whitepapers. To maintain competitiveness, such processes must be automated as much as possible, ensuring objectives are met faster than the competition.
Competitive Advantage and Wealth Creation
The last century has demonstrated that wealth accumulates where new capabilities are created. The wealthiest individuals or organizations often dominate markets by being the first to develop or commercialize transformative technologies. In this paradigm, the new top 0.1% will be those who can fund and deploy virtual resources effectively to create value in the marketplace.
Implications for the Majority
For most of us, thriving in this new era will hinge on interpersonal skills, as most knowledge work becomes outsourced or automated. The ability to foster positive relationships and collaboration will become paramount. Skills like Mindfulness and Emotional Intelligence will be invaluable. Developing and certifying these competencies could be a key strategy for staying relevant in a world increasingly dominated by virtualized expertise.
AI will create exponential advancements to human kind, but with it comes responsibility to adapt.
NOTE: I had AI take my thoughts and create this article. Special thanks to Bob who commented I can't write a post well :)
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