Each day passes and every advancement in AI language and vision technology makes it more obvious that there will be three types: AI Native, AI Emergent, and Obsolete.

I am constantly thinking of examples: retailers, ecommerce shops, and marketing agencies. Event businesses, media companies, and law firms. Artists, writers, graphic designers, and financial advisors. Software makers, app developers, real estate brokers, consumer product makers, hotel chains, distributors, and educational institutes.

You can take any of these or your business and look for inefficiencies in repetitive tasks, opportunities to increase revenue through predictive models (e.g. For customer acquisition, retention or growth, and for ways to unlock ideas and innovation through previously unattainable creative opportunities.

All this is possible thanks to AI.

But why is this moment so important? Why is this time different from the never-ending digital transformation cycle?

Take into account the following:

• Data and our need for understanding and acting on it continue to grow exponentially.

• Consumers expect convenience and personalization in B2B and B2C sales, marketing, and service.

• Leadership is looking for ever-improving performance while prioritizing efficiency in talent allocation and financial resource allocation (especially when we are on the brink of a recession).

• It is essential to predict human behavior and business outcomes to reduce uncertainty. Uncertainty is a curse for investors, boards, and leaders of companies.

• As cloud computing continues to grow in power and speed, the cost of building AI apps has fallen, opening up new opportunities and democratizing access.

• Google, Microsoft, Amazon, and Amazon are expanding their AI research and teams rapidly. They also offer cloud services and bring AI innovation and technology to businesses of any size. They’re not the only ones doing this. Apple, Meta, and NVIDIA, Salesforce and Adobe, IBM, as well as other tech leaders, have been increasing AI acquisitions, investments, and solutions over the past decade.

• Venture capital money is flowing into startups that create smarter, AI-powered solutions in every industry.

• AI-powered innovation is growing at an alarming pace, offering entrepreneurs seemingly limitless opportunities to make a difference.

All of these factors are combined, creating a perfect storm for large-scale disruption and unique wealth creation. It also offers the opportunity to advance your career.

AI Emergent, AI Native, or Obsolete

Let’s now look at the three options available to your company as you move forward.

1. AI Native

Without the AI vision, language, and predictive apps AI allows, AI Native companies wouldn’t exist. They are built from scratch with AI at their core product/service and may be deeply integrated into sales, marketing, and operations.

They have more resources (talent and money), are more efficient than their competitors, think bigger about what is possible, place a premium upon data and build smarter businesses that will rise the ranks in their industry.

Pick any industry and find a niche within it. Then, create a better solution. This would be my investment thesis if I ran a studio or venture fund.

Look no further to find AI Native companies than top accelerators such as Y Combinator and 500 Startups.

Join the 1.3M professionals who follow Allie K. Miller (Global Head of Machine Learning Business Development at Startups and Ventures at Amazon Web Services) Allie works tirelessly to keep her fingers on the pulse of the most promising startups in technology. She regularly shares insights with her millions of followers on LinkedIn and Instagram.

There are many opportunities, and the future is here. In the coming months and years, these AI Native businesses of the future will transform everything.

If you are a leader or employee of an existing business, you have the opportunity to create a better business.

This brings us to the next type of company.

2. AI Emergent

AI Emergent Companies are organizations that have established AI programs and can quickly adopt AI across the entire organization.

They have visionary leaders who can see the rapid advances in AI capabilities and invest the resources necessary to build a better business.

These emerging companies have large AI and machine learning (ML) talent pools. (e.g., Adobe has 300+ AI/ML staff according to LinkedIn), they invent faster than the rest (potentially through venture labs or R&D laboratories focused on building AI tech), and excel at personalization across sales, marketing, and service.

If they can move quickly enough to transform, they have the infrastructure, customers, and data to withstand AI Native companies. They have the cash to buy the AI Native companies and prevent them from becoming dominant.

Netflix is an excellent example. From DVD delivery in the late 1990s to a dominant streaming company that uses AI in nearly every aspect of its business, Netflix is a classic example.

You can also see what Dr. Andrew Ng (and Landing AI) are doing in manufacturing. They have implemented AI-powered visual inspection solutions for electronics, pharmaceuticals, food and beverage, and medicine. Ng, who was the former chief scientist at Baidu and is also the founder of Coursera, is also the founding leader of Google Brain. His team at Landing AI raised $57M Series B in 2021 to help accelerate AI adoption in large companies.

Ng is creating an AI Native technology consulting company. (Landing AI wouldn’t exist without AI). He also builds AI Emergent companies.

3. Obsolete

They wait for the world of business to become smarter than they are. They aren’t interested in AI knowledge, their leaders resist change, and don’t run pilot testing to prove AI’s worth. AI is a buzzword that’s too popular.

The AI Emergent and AI Native companies will take control of the market as soon as they act.

End of the story.

It may be time for you to make a career shift if you are employed by or run one of these businesses.

These Obsolete Companies won’t all disappear overnight. However, their value and relevance will diminish over time.

Marketing agencies are an example. For agencies to be able to meet their profit goals, they must perform well.

Let’s suppose Agency A adopts AI in all of its core services (e.g. Analytics, copywriting, and advertising creative. Agency A can produce the same amount of work in 20% less time over 1 year and the quality (human + machine)increases. Agency A uses the 20% time savings to fund new marketing campaigns and sales campaigns that will lead to compounding growth opportunities over the next few years.

Agency A then applies AI over the next two years to increase efficiency in other business areas, such as finance, HR, and customer success. Agency A focuses its employees on more satisfying work, including creativity and client relationships. Meanwhile, AI technology handles repetitive, data-driven tasks.

Agency A is a happy workplace with loyal clients and leaders who are looking for a bright future.

Agency B continues to follow the traditional agency model, which relies on 70-80% utilization rates (i.e. Agency B uses 70-80% utilization rates (i.e. employees bill clients for 70-80% of their time each month) to meet its goals. Agency B is so focused on optimizing its billable hours and cutting costs that it neglects to prioritize understanding and adopting AI.

Agency B’s employees feel undervalued and overworked. Clients are left wanting more value and results. Leaders are left wondering what went wrong.

Although this story may have been slightly dramatized, it is still a good example of the message. Agency B is not for you.

Which is your choice? Artificial Intelligence, or Obsolete

The need to create valuable products and services, provide amazing customer experiences, and invest in your culture and talent is not something AI can replace.

However, AI Native and Emergent companies will have too many competitive advantages to overcome in the upcoming years. They also provide strong business foundations.

Obsolete people are bad for your business and your career.

It is inspiring and limitless to be bold and forge a new course.

Although there is still plenty of time, the window of opportunity is shrinking.

Be curious about AI and explore it. You can choose to be an AI Native company or AI Emergent.

This is a career choice you won’t regret.