Investment in AI is Rising ...

It’s no surprise that capital raising is moving toward AI - and often generative AI. 

 

via visualcapitalist

From 2023-2024, over $26 billion flowed into the sector - including big deals like Inflection, xAI, and Anthropic. 

While many of the biggest investments were in foundational models and infrastructure, some money is now moving into targeted AI applications. 

AI isn’t just for researchers and the tech giants anymore ... it’s becoming more commercial.

Realistically, AI is overhyped – and there is a lot of competition. Yet, few firms have operationalized AI in a meaningful way. 

With that said, here is a question worth considering.

Where are the AI applications capable of generating returns that justify the infrastructure, investment, and focus?

The next battle will likely be in the AI Applications space. To keep it short, why hasn’t it happened yet ... and what will likely create the value we’re looking for?

 

Why Haven’t AI Apps Taken Off Yet?

  •  Cost vs. Value Gap: Many AI applications are still experimental or add only incremental value.

  •  Compute Bottlenecks: AI compute costs remain expensive, limiting broader adoption.

  •  Enterprise Hesitation: Many companies are still figuring out how to integrate AI into their operations in a way that delivers real ROI.

 

Where Might the Value Come From?

For AI investments to pay off, applications must solve big problems, not just serve as experimental tools. The highest-value areas likely include:

  •  AI copilots and automation (Enterprise AI reducing labor costs and bottlenecks)

  •  Autonomous systems (AI for analytics, compliance, and logistics)

  •  AI-driven discovery (Accelerating breakthroughs in capabilities and performance)

  •  Next-gen digital assistants (LLMs with memory, context, and long-term utility)

 

Right now, AI apps are where mobile apps were in 2008 — there is plenty of potential, but only a handful of genuinely indispensable use cases. 

Companies like Capitalogix that crack the code on industrial-grade AI applications, will drive the next wave of value creation.

It’s fun and rewarding to watch artificial intelligence become available to everyone.

As the cost of “intelligence” decreases, let’s hope more people take advantage of the opportunity.

However, the sad truth is the opposite is also more likely. As AI becomes more available, it becomes easier for it to become a distraction. 

Remember the Internet? When it first started, most of the uses were academic. Now, despite there being functionally infinite ways to use the internet to improve your life and make you smarter, most people use it for memes and distractions. 

When you think about AI, don’t just think about artificial intelligence ... Think about amplified intelligence. That is the term I use to distinguish between the technology and what people really want ... which is the ability to make better decisions, take smarter actions, and continuously improve performance.

AI isn’t about taking away the humanity from your business or automating away the things you love. It’s about allowing you to be more human – doing more of the things you’re best at - that give you energy and bring you joy.