Rolling Credits on Old Tech: AI's Taking the Director's Chair!

Video Production on Steroids

RunwayML is going to allow all the creators out there to produce videos and movies on steroids. Prepare for the future of movie production while all the actors are rioting 😄 

There's also a discussion about studios potentially owning AI-generated imagery. This is concerning because studios could recreate actors and actresses on screen without requiring their performances. On the brighter side, this revolution could create a new market for creators: imagine every TikToker and YouTuber producing their own versions of Spiderman and other films with this technology.

Well, this may prove to be challenging, too, with copyright laws and fake imagery coming into place. The Internet is going to become an interesting place to be.

First, here is what is new in the world of AI and automation:

• ChatGPT Rival 'Pi': LinkedIn and DeepMind's co-founders introduce Pi, a chatbot with enhanced emotional intelligence. Unlike standard chatbots, Pi aims to be more personalized and doesn't encourage parasocial relationships. The company has secured $225 million in funding.

• IBM's AI Hiring Strategy: CEO Arvind Krishna reveals a halt in hiring for certain back-office roles which might be replaced by AI and automation in the coming years, potentially affecting 7,800 jobs.

• Video Object Tracking Tool: Track-Anything introduces a new interactive tool that offers video inpainting and multi-object tracking with segmentation masks, utilizing techniques like SAM, XMem, and E2FGVI.

• NVIDIA's AI Research: NVIDIA will present about 20 papers at SIGGRAPH 2023, focusing on generative AI and neural graphics. Highlights include AI models converting text to images and tools that change images into 3D objects.

• Runway's iOS App: AI startup Runway releases its Gen-1 iPhone app, enabling users to harness its video-to-video generative AI model to transform regular videos or modify them using text prompts, images, and style presets.

Grow Your Perspective

Reinventing Existing vs. Creating New Markets

Startups either reinvent existing markets or create new ones. Both paths have their merits and challenges. Recognizing where you fit on this spectrum is vital for strategy and maximizing value creation.

Key Takeaways:

1. Uber’s Dual Disruption: At first, Uber seemed to be simply reinventing the taxi-hailing market. Yet, its grand vision aims to change the entire concept of car ownership.

2. Amazon's Evolution: Amazon started by digitizing book selling, but has since created new markets with products like Kindle and Alexa, while also reshaping sectors like cloud services and logistics.

3. Digitization Trend: The pandemic accelerated the shift of offline behaviors to online, opening opportunities for startups. Platforms like OpenTable have capitalized by transforming offline activities into massive online businesses.

4. Reinvention Signals: If an industry spends heavily on traditional advertising, it might be ripe for disruption. Companies like Tesla and Lemonade thrived by focusing on product innovation instead of advertising, disrupting their respective sectors.

5. Beware of Old Ways: Startups should avoid mimicking the very incumbents they’re trying to disrupt. Hiring industry veterans can sometimes pull startups into traditional molds, stifling innovation.

6. Frameworks for New Market Creation:

   • Organize Informal Behavior: Convert casual activities into commercial ventures, like Airbnb did with home-sharing.

   • Spot Early Adopters: Watch tech-savvy students and engineers, as their behaviors often signal emerging markets.

   • Exponential Curves: Rapid growth or declining prices in adjacent markets can open opportunities.

   • Feature Abstraction: Convert features into platforms. Companies like Shopify and Twilio began as simple features but evolved into major platforms.

   • Resource Sharing: Convert fixed costs to variable, as WeWork did with office space.

7. The Spectrum of Innovation: Companies don’t strictly reinvent or create; they often shift positions over time. Knowing where you stand helps play to strengths and strategize effectively.

Closing Thought: Whether reinventing or creating markets, the Total Addressable Market (TAM) potential is often underestimated. Visionaries see value where others don’t, especially in novel territories.

By Pete Flint

Stay tuned for more AI updates.

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