During their latest episode of the VALUE: After Hours Podcast, Costa, Taylor, and Carlisle discuss AI Closes The Gap Between Large And Small Businesses. Here’s an excerpt from the episode:
Tavi: From an AI perspective, I think it surprises me to see a little bit of this mega cap rally relative to other things. Main reason for that is because I think AI is an enabler of capacity in general for smaller businesses to close the gap between small and big businesses. When I think about what I use for AI on my daily basis, it’s almost like a perfect assistant. It almost feels like I’m working with hundred people helping me to come up with the best formula, the best variable, the best way to write something. It’s really interesting how it helps me to become a better version of myself. That is essentially why you hire people, right? To guide you and help you.
Tobias: Yeah, and help yourself.
Tavi: So, think about back in the days. Before the internet, you’re starting a business, essentially you needed to acquire or rent a place or buy a place and start your business, whatever it’s a service or a good that you’re selling. With the internet, it allowed us to essentially not have that physical location. Perhaps, you’re just able to start a business online. That was, in some cases, a much easier way of lowering that barrier to begin a business. Some people make their lives with a YouTube channel. How many people do you really need, depending on the type of channel you’re running? It’s something that was unthinkable 20 years, 30 years ago. There’s a lot of people that make a lot of money just doing that.
So, now you think about today with the AI changes, it’s just leveraging that up. It’s not only easy now for you to open a business, now you have an assistant that is for free, essentially, to help you and guide you to accomplish what you’re trying to accomplish as a business. And so, to me, it’s an enabler of a lot of skills. In that sense, I would think that it should close the gap of a lot of things. It should close the gap. If you extrapolate that thesis, it should close the gap between mega companies and smaller businesses, number one. So, I think for stock pickers in a small space, like, we are trying to do with metals and mining, I think you could do that in other industries. I just don’t have the time to do it all. But I think there’s great opportunities in that side.
Jake: That’s an interesting observation, because it feels like the market is completely going the other way right now with dumping anything small and–
Tavi: I would agree. And also, think about emerging markets. Should we have that large of a gap between the two? If you’re using AI and allowing you to also close the gap between business capability in the US versus a business capability in the place like Brazil or Europe or I don’t know. Those are very important questions. I think valuations are not reflecting that yet. We might see that over time and that will create a lot of opportunities too.
Jake: If we use electricity as the analog for the physical world and maybe AI is the electricity of the digital world. I’d be curious, as a thought experiment, did electricity flatten the world more or did it make it more have and have nots? You know what I mean? Is there any reason why, let’s say, there’s a first mover advantage for, let’s say, like a US company as opposed to an emerging market company that has access to AI.
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