Artificial Intelligence: The Future of Business Processes
New Wave of AI-Powered Startups
It’s old news by now that business processes are being transformed into artificial intelligence (AI) operations. Companies such as Salesforce, Hubspot, and Microsoft unveiled a slew of AI "agent" capabilities this year for business functions such as customer service and sales.
Bank of America Report: AI-Native Startups
Now, a wave of privately backed software firms are using AI to build brand-new applications from the ground up, to re-invent areas traditionally resistant to technology such as legal services and healthcare, according to Bank of America.
AI-Native Startups: The Next Big Thing
"We expect AI-native startups to proliferate over the next several years and increasingly cannibalize the significantly larger $12.3 trillion US Services industry," writes the firm’s software and services analyst, Alkesh Shah, in a December 13 report based on a virtual conference held last week to discuss trends in AI.
Examples of AI-Native Startups
The startups featured at the conference include San Francisco-based Hippocratic AI, founded in 2022, which uses large language models to automate non-diagnostic healthcare tasks such as assessment of individuals to determine the need for an emergency room visit.
Another startup, vLex of Barcelona, Spain, uses large language models to, among other things, generate hypothetical arguments that opposing counsel in a lawsuit might use, to help lawyers and paralegals strategize.
Impact on Human Jobs
Both companies are examples of automation that may start to eat into human jobs, writes Shah. "It may become increasingly difficult to compete with AI agents. According to the US Bureau of Labor Statistics, there are approximately 3.3 million registered nurses ($41/hour average pay), 55,000 medical scribes ($18/hour average pay), 859,000 lawyers ($70/hour average pay), and 366,000 paralegals and legal assistants ($29/hour average pay)."
Conclusion
The rise of commercial software packages focused on AI may help bridge the divide for the large portion of enterprises that struggle on their own to know how best to use the technology. As AI-native startups continue to proliferate, it’s clear that the future of business processes is being shaped by artificial intelligence.
FAQs
Q: What is the purpose of AI-native startups?
A: AI-native startups are using AI to build brand-new applications from the ground up, to re-invent areas traditionally resistant to technology such as legal services and healthcare.
Q: How many AI-native startups are expected to emerge?
A: According to Bank of America, AI-native startups are expected to proliferate over the next several years and increasingly cannibalize the significantly larger $12.3 trillion US Services industry.
Q: What are some examples of AI-native startups?
A: Examples include Hippocratic AI, which uses large language models to automate non-diagnostic healthcare tasks, and vLex, which uses large language models to generate hypothetical arguments for lawyers and paralegals.
Q: What is the impact of AI-native startups on human jobs?
A: AI-native startups may start to eat into human jobs, making it increasingly difficult for humans to compete with AI agents.
