Tom Tunguz, General Partner at Theory Ventures, discusses data & AI trends in 2024. Topics include generative AI impact, cloud+local workflows, data security, changes in data warehousing, future of business intelligence, challenges/opportunities in corporate AI, and hot new data startups.
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Quick takeaways
Advancement of data and AI tools to raise productivity expectations for white-collar workers by at least 50%
Transition from co-pilots to AI agents showing productivity gains of 50-75%, with automation promising up to 250% boosts in various sectors
Deep dives
Impact of AI on Productivity Expectations
The speaker discusses how the advancement of data and AI tools will significantly raise productivity expectations for white-collar workers. With these tools becoming more prevalent, individuals are expected to be at least 50% more productive than before. Understanding a variety of systems and knowing when and how to utilize them effectively will be crucial in this new work environment.
Shift from Co-Pilots to Agents in AI
There has been a noticeable transition from favoring co-pilots to expecting agents in the AI landscape. Co-pilot systems completing sentences have shown productivity gains of 50-75%, while emerging agents promise up to 250% boosts by automating work processes. The trend towards automation is visible in sectors like security and customer support, where functions have been significantly streamlined.
Hybrid Approach in AI Application
A hybrid approach integrating generative AI and classical methods is evolving in AI applications. Companies are combining generative AI outputs with traditional machine learning to mitigate potential errors. This hybrid model aims to leverage the strengths of both systems, ensuring accurate and efficient processing of data.
Data Quality and Security Concerns with Generative AI
Generative AI poses challenges related to data quality and security in various contexts. The potential for errors in generative AI output highlights the importance of data contracts and quality assurance mechanisms. Issues such as data hallucinations and security breaches underscore the need for robust data security protocols in AI applications.
Rapid change seems to be the new norm within the data and AI space, and due to the ecosystem constantly changing, it can be tricky to keep up. Fortunately, any self-respecting venture capitalist looking into data and AI will stay on top of what’s changing and where the next big breakthroughs are likely to come from. We all want to know which important trends are emerging and how we can take advantage of them, so why not learn from a leading VC.
Tomasz Tunguz is a General Partner at Theory Ventures, a $235m early-stage venture capital firm. He blogs sat tomtunguz.com & co-authored Winning with Data. He has worked or works with Looker, Kustomer, Monte Carlo, Dremio, Omni, Hex, Spot, Arbitrum, Sui & many others.
He was previously the product manager for Google's social media monetization team, including the Google-MySpace partnership, and managed the launches of AdSense into six new markets in Europe and Asia. Before Google, Tunguz developed systems for the Department of Homeland Security at Appian Corporation.
In the episode, Richie and Tom explore trends in generative AI, the impact of AI on professional fields, cloud+local hybrid workflows, data security, and changes in data warehousing through the use of integrated AI tools, the future of business intelligence and data analytics, the challenges and opportunities surrounding AI in the corporate sector. You'll also get to discover Tom's picks for the hottest new data startups.