How integration wars will reshape the generative AI market

ai integration wars
Image source: 123RF (with modification)

This article is part of our series that explores the business of artificial intelligence

In 2023, big tech companies were competing over who had the most advanced generative AI models. 

Now, the industry has shifted its focus to building products and business models around generative AI systems. Tech giants are trying to integrate large language models into their platforms, devices, and applications in a way that gives them the edge over competitors. And here, the winner is not necessarily the best-performing model, which is why we can expect major shifts in the landscape again.

Google has added new features for Chrome that use generative AI to improve the user experience. These features include an organizer that groups tabs based on their content, a design tool that creates custom themes from written descriptions, and a writing assistant that helps you write and edit text on web pages. This comes on the back of generative AI features added to Google Workspace products such as Docs, Sheets, and Slides.

Microsoft is also working hard to integrate generative AI into every consumer and enterprise product. Its Microsoft 365 suite already has many AI features that help write letters, create slide decks, generate images, and work across documents and products.

And with its Copilot branding, Microsoft aims to create the ultimate generative AI assistant that follows you across apps and the entire operating system.

Apple has not been making a lot of noise but is doing a lot of work behind the scenes. The research papers it has been silently releasing indicate it is working on LLMs that can run on memory-constrained devices such as phones and laptops. Apple’s AI strategy is product-centric. Instead of showing off the technical capabilities of its models, it puts AI in its products and shows how you can solve specific problems. (In this regard, Apple might be a bit ahead of its competitors, since it was in the integration phase while others were still showing off benchmark results.)

Amazon is also using generative AI in many products. This includes a new large language model for Alexa, a tool for generating product descriptions in its e-commerce platform, an image generator for ads, and a model that summarizes customer reviews for a product and gives you the gist of the general sentiment.

Other companies like Adobe and Intuit are making sure they are not left behind in the wake of the wave of innovations ushered in by generative AI. And startups like Rabbit and Humane are banking on creating new devices and experiences with generative AI.

What does it mean for the generative AI landscape?

2023 was all about showing off benchmark results and cherry-picked examples, which is partly why many AI startups managed to raise insane amounts of funding. But 2024 will be about efficiency, with product integration becoming an important role in determining the winners. This will have several implications. 

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