Martin Casado of Andreessen Horowitz is optimistic about the AI-driven future and says generative AI has the potential to reshape entire industries.
“Previously, large companies could take advantage of AI, but startups had a tough time. What’s really changed is that the economics make a lot of sense,” Casado said. “The current AI is tackling a set of problems with a new type of technology where the economics are incredibly compelling. And that’s the big difference.”
In talking about the historical significance of this era of generative AI, Casado said it’s the same level of epoch as the microchip or the internet.
“People sometimes compare it to mobile, but I think it’s bigger than that,” he said. “Anytime the marginal cost of something important goes to zero, you’ve got this explosion of value and productivity on the other side of it.”
[Let's say there] are roughly 4 billion people online. If you assume an AI for every person, there could easily be 100 individual AIs per, right? So now we go from 4 billion to 400 billion AIs, and every one of them will be online. And are you going to give [all] those AIs a keyboard and a monitor and a mouse? No, they are all going to interact via APIs.
Martin Casado
General Partner at Andreessen Horowitz
While most organizations are struggling to see how AI fits into the way they operate, individuals are already eagerly exploring the possibilities. For businesses looking to take advantage of the efficiencies offered by AI, the key is to embrace that it’s happening.
“When you have new technologies and they’re super disruptive, it takes a long time for organizations to catch up. It’s almost like the individual gets it before the enterprise. That is absolutely the case with AI,” Casado said. “Don’t be like [companies in the ’90s that banned] the browser. You need to try to catch up and incorporate it.”
Bringing it back to APIs and how essential they are for AI, Casado said that with AI, for every person there could easily be 100 AIs — and they’re all going to interact via APIs.
"Are you going to give those AIs a keyboard, monitor, and mouse? No. They're all going to interact with APIs," he said. "If you don’t have an API strategy, you need one. And if you think for your website or whatever your product is that the user in the future is going to be a human, it’s almost certainly not. It’s almost certainly going to be an AI."