The AI Dual Advantage

This article was originally published on Forbes.

Artificial intelligence, particularly generative AI, continues to revolutionize industries worldwide. We’re witnessing profound shifts in how work is done and how software is utilized. For leaders, the key question remains: Could AI represent an opportunity both to sell work and to replace traditional standalone software products and tools? Let's explore this dual opportunity.

Selling Work With AI

"Selling work" in the AI context refers to leveraging AI to provide scalable services. AI is no longer just a behind-the-scenes tool; it is now at the forefront of revenue generation. By incorporating AI-based solutions, businesses can scale their services more efficiently, providing clients with faster, high-quality outcomes.

Here are a few examples of companies that have successfully used AI to deliver scalable, sellable work in various industries:

• Anthropic's Claude: This advanced AI assistant can draft and iterate on websites, graphics, documents and code, allowing businesses to offer high-quality content creation services at scale.
• Jasper AI: This tool helps companies create marketing content, ad copy and social media posts much faster than humans. Marketing firms use Jasper to deliver tailored content efficiently, effectively selling AI-generated work to clients.
• GitHub Copilot: Developed by GitHub and OpenAI, this AI-powered code completion tool assists developers in various integrated development environments, enabling software development firms to offer faster coding services.

Replacing Traditional Software Products With AI

AI is not just enhancing existing software products—it’s beginning to replace traditional (siloed) software products and tools by offering more integrated, dynamic and adaptive solutions. Rather than relying on single-use applications, AI-driven tools can tackle multiple functions, often outperforming specialized software by automating tasks and learning from user inputs. This shift allows businesses to streamline their operations, reduce dependency on multiple software products (and vendors) and improve efficiency.

Let's look at some examples of how AI is actively replacing and transforming traditional software systems.

• Duet AI For Google Workspace: This AI integration with Google apps offers features like content generation, summarization and rewriting, potentially replacing multiple standalone productivity tools.
• Scribe: This AI writing assistant transforms content creation, excelling at summarizing articles, writing reports and supporting academic work. It could replace various writing and research tools.
• AlphaCode 2: This can solve complex coding problems by autonomously generating code based on problem descriptions. Google's advanced AI could replace traditional development environments, automating tasks like coding, debugging and optimization that typically require manual input. By streamlining these processes, AlphaCode 2 reduces the need for separate coding software and tools.

Unlocking Value

This dual opportunity is crucial for leaders seeking efficiency and growth. By selling AI-powered work, companies can offer high-value services at reduced costs, enhancing profitability. Simultaneously, replacing outdated software products and systems with agile AI solutions can cut overhead while improving operational flexibility.

For example:

• Customer Support: Ada, a Toronto-based company, uses AI to automate customer service interactions for large enterprises. Their AI chatbots handle queries and troubleshoot issues, effectively selling customer service as a product while replacing traditional help desk software.
• Content Creation: Businesses can deploy AI platforms like Copy.ai to generate ad copy, blog posts and other marketing materials, reducing the need for multiple content creation tools and allowing companies to directly monetize AI-generated content.

The Opportunity Ahead

The real opportunity lies in leveraging AI to do more with less. AI is stepping in to augment, not eliminate, jobs in industries reliant on human talent and complex workflows. Leaders should view AI as a partner that can both sell work directly and replace outdated software systems.

Key Benefits

• Increased Efficiency: AI integration allows businesses to perform tasks faster and at a larger scale.
• Cost Savings: AI reduces software product dependency and automates tasks previously requiring human effort.
• New Revenue Streams: Offering AI-driven services opens up opportunities to sell more work, faster, and to more clients.

As AI capabilities grow, the challenge for leaders is to recognize how it fundamentally reshapes the landscape of work and software. Those who embrace this dual opportunity stand to benefit from both cost savings and enhanced growth potential.

You should ask yourself: How can AI help generate new business and streamline operations simultaneously? The answers could transform the future of your company.

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