Companies often face external shocks such as pandemics, wars, or revolutionary technology, and it takes time for managers to understand how to adapt. The ChatGPT and GPT4 shock we are now experiencing will threaten the existence of well-established companies in many industries.
OpenAI launched an AI-based text generator, ChatGPT, on November 30, 2022. Just three months after its launch, it had more than 100 million users, of which nearly 13 million use the service daily. By comparison, it took Instagram nearly a year to reach 10 million users.
The use and spread of ChatGPT potentially threatens companies’ presence in established markets such as cloud solutions, digital marketing, and online shopping. Then companies like Google, Amazon and Microsoft will be threatened. Google has already put emergency personnel in place for fear of losing $160 billion in advertising and search revenue.
The mobile industry was waiting for the situation when Apple launched the iPhone in 2007, and companies such as Ericsson, Sony, LG, BlackBerry, HTC, Motorola and Nokia disappeared from the market.
Microsoft has invested $10 billion in OpenAI, and has entered into an agreement to use ChatGPT in the Bing search engine. Via Copilot functionality, this becomes part of Word, Excel and PowerPoint, providing significant productivity gains in the business market. We haven’t heard from Amazon – yet.
Other companies will adopt the technology and bring it to market offer to become more attractive in the market. Think customer dialogue and customer service. One McKinsey Analysis He states that the technology will enhance the value proposition and increase operating profits in the apparel, fashion and luxury sectors by between $150 and $275 billion.
The process of disruption, which is the beginning of the end for companies, occurs when successful companies fail because they continue to make the choices that led to their previous success. This is often caused by the complexity of changing the business model and the organization that has specialized in effectively producing and delivering existing solutions, the uncertainty about which technology will break through and the costs that arise when new solutions “steal” income from old solutions.
Today, it’s more important than ever to take ChatGPT’s technology transformation seriously. The mobile industry was waiting for the situation when Apple launched the iPhone in 2007, and companies such as Ericsson, Sony, LG, BlackBerry, HTC, Motorola and Nokia disappeared from the market. What we have to remember is that, unlike iPhone, ChatGPT is not limited to one industry. Everyone can use technology everywhere.
The prediction is clear: ChatGPT will not replace companies, but companies that do not adopt the technology will be replaced by those that do not.
Tor W Andreessen
Professor of Innovation at the Norwegian School of Economics (NHH)
“Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst.”
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