If 2023 was an experiment with LLMs, 2024 is a year when AI is increasingly transforming work productivity. That's where the concept of AI-native workflows comes in. Let's take a look at what products are emerging and evolving in AI-native workflows, and where are the key market players in the areas of creativity and expertise.
While 2023 was a year for companies to explore the possibilities of generative AI and experiment with various things, 2024 is a year where more and more companies are deploying AI to enhance productivity. The concept of "AI-native Workflow" is emerging. Let's take a look at what AI-native workflows are and which companies are the main players.
According to a survey by Better Cloud, companies with fewer than 50 employees use 16 SaaS software, compared to 177 if they have more than 1,000 employees. Few people like so many work tools. Even the number one product in the market is not easy to learn, and it is often inflexible when applied to actual work.
Generative AI is making it possible to completely reinvent workflows. Many of you may have had experience using ChatGPT to assist you performing core work tasks more efficiently. But nobody has been able to apply GPT-4o or any of the other LLMs to every task.
Andreessen Horowitz published a report on "AI Native Workflows" that is interesting. AI-native workflow offerings are all about transforming cutting-edge AI models into accessible and effective task-targeted UIs. Users are less interested in the various LLM models and infrastructure; instead, they're more interested in how the product works for them. It starts with understanding what pain points users are experiencing in practice and where AI can be leveraged effectively to address them.
More than using AI for text generation, examples of using natural language as prompts to create images or videos are becoming more and more advanced. Not long ago, OpenAI's Sora was announced and became a hot topic. It is now possible to create products that are driven by natural language prompts. Something to keep in mind - LLMs don't just use one model, they can mix or combine models.
Learn more about Vizcom: Introducing Vizcom Workbench Public Beta
No task is perfect the first time. However, in generative AI, if you run the same prompt again, you will get different results. Recreating or modifying prompts is time-consuming, and the results are often disappointing. Now, AI editing capabilities are becoming more powerful in transforming, modifying, and improving the results.
Andreessen Horowitz's report sees three directions for the evolution of AI-native workflow products.
Andreessen Horowitz categorized AI-native workflow companies based on workflow depth and expertise and creativity as follows: Pika, ElevenLabs, Vizcom, etc., which I briefly mentioned above, stand out. There are many companies that are doing well in the area of artistic creativity, but there is also news of investment from companies that help automate in the business area.
Kore.ai, which builds conversational AI for enterprises, raised $150 million, email AI assistant Mindy, led by Sequoia Capital, which raised $6 million in a seed round, and Inngest, which builds a backend workflow engine, also raised $6.1 million, led by Andreessen Horowitz.
According to Straits Research, the workflow automation market size is expected to grow at a compound annual growth rate (CAGR) of 9.71%, reaching $34.4 billion by 2030. While IBM, Oracle, and Xerox have been the dominants in the traditional market, AI native workflows are dominated by software startups that have mastered generative AI and the know-how of task automation.
Andreessen Horowitz's report’s initial focus was on AI workflow tools targeted at the prosumer market. In the investment market or market value, it seems that work automation workflow products are being covered more. B2B AI solutions are evolving in the direction of bringing LLMs into the workplace to solve problems and produce sophisticated and accurate results. In particular, it is possible and desirable to perform not only one function, but to move in the direction of a full-stack AI tool.
Allganize’s Ali LLM app market, allows you to leverage various LLMs to suit your company's work and includes more than 100 work automation apps out of the box is also evolving towards the full-stack AI model.
If you're curious about AI-native workflow tools, contact Allganize!
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