Stratechery Enterprise Philosophy and The First Wave of AI
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Sep 24, 2024 Explore the evolving role of technology in enterprises, highlighting the debate between efficiency and human labor. Discover how top tech companies like Google, Meta, Apple, and Microsoft deploy diverse AI strategies shaped by their core philosophies. Navigate the historical context of co-pilot technology and its potential to boost workplace productivity. Delve into the mechanics of language models and how they enhance problem-solving. Finally, unpack the balance between productivity gains and costs in AI integration for modern businesses.
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Back-Office Digitization
- Digitization significantly impacted large enterprises, starting with back-office functions.
- This wave, preceding personal computers, automated jobs like bookkeeping and bank telling, ultimately increasing efficiency and changing business models.
Checkmaster System
- In 1908, bank tellers and bookkeepers performed tasks manually. By 1936, the "Checkmaster" system automated checking accounts, requiring more staff due to increased volume.
Two Tech Philosophies
- Two philosophies exist in tech: one where computers do things for you (Google, Facebook), and another where computers empower you (Apple, Microsoft).
- This reflects a shift in responsibility, with the former emphasizing the company's role and the latter emphasizing individual empowerment.