Impact of AI

Artificial intelligence will determine whether companies and entire industries will fail or thrive. AI is moving so fast that even the people programming the models do not know what it will be able to do in six months. However, it is crystal clear that the impact of AI will be beyond anything we can imagine.

In the past, the rise of the internet disrupted entire industries. The impact of AI will be much greater.

The internet primarily affected how things were done by creating new channels and platforms. AI, however, goes deeper by influencing what is done and why. It analyzes data to uncover hidden patterns and will even make decisions traditionally reserved for humans. This fundamental shift will reshape entire industries from the ground up.

While I’m currently looking for a new venture, I’m looking at different industries from a whole new perspective by asking myself how that industry will be disrupted by massive advances in AI. How quickly could it happen? What are the risks and opportunities of AI disrupting this industry?

For example, I am currently looking at doing acquisitions and considering starting an M&A consultancy focussed on preparing businesses for a successful exit. The M&A process involves a lot of manual and repetitive tasks, including data extraction, data analysis, due diligence, valuation modeling, document generation and review. There is no future scenario in which the current landscape of M&A will not be completely disrupted by AI, performing close to all the work happening in the background to make M&A deals happen. There is a high chance AI will oust well paid jobs such as data analysts, research associates, paralegals, financial modelers, loan underwriters, accountants, auditors, and even lawyers. Hence, the only way to build a successful M&A advisory firm is to develop and leverage such AI tools while focusing on strategic advice and the human touch.

There are many industries that will ultimately be disrupted by AI. In addition to the traditional financial industry, I would not get into industries such as insurance, education, advertising, and eventually even programming.

Other industries may be less affected by AI, such as construction and food – we will still live in a physical home and eat real food.

At the same time, I see a lot of potential and a lot of money to be made in industries that will benefit greatly from AI over the next 20 years – particularly healthcare, logistics, and manufacturing.

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