AI for Serious Industries
A No-Nonsense Whitepaper
The heart of the matter is
That A.I while it is evangelized on a wide front - does not sufficiently address the case of Capital Intensive Industries.
Say, for a company that manufactures automotive parts for a major car manufacturer - the world is not going to change dramatically any time soon. The internet itself with its glorious 25 years of existence, allowed little more than running a quick yellow pages directory for such serious business enterprises with sunk capital.
It is true that digitization had transformed distribution methods for industries which are highly transactional and light on capital - from cloud kitchens, driver owned taxi cabs, small landlords, small vendors aggregating over collective sale platforms.
Another class of industries that had come to be transformed are industries (some very large like airlines) with a floating interaction with customers, because of their commodification and standardized and short term experience.
A third class of industries are in the nature of retail lending, entertainment and social media canvassing which involve consumers as private citizens who continuously engage with the enterprise rather than transactionally. The contract, identity and business evolves on a continuous basis.
Heavy Industries of a contractual and capital intensive part are conspicuously left behind in the scheme of things.
After all - the backbone of the IT consulting industry comes from the Mainstreet rather than the garage shops. Many IT consulting companies pride themselves of having Fortune 500 Clients in their Customer List.
One can checkout the Reports on IT consulting firms like Kyndryl, Virtusa
Hence, consulting this segment to the cutting edge of tech is something that the market has a crying need for - there is in fact a need for second order specialist consultants to the IT majors.
Reference 2 shows the number of clients of a leading IT company in Indian in the small hundreds. Reference 1 shows the limited impact of the digital narrative on the economic value chain.
References:
https://www.economist.com/business/2022/10/31/what-went-wrong-with-snap-netflix-and-uber
https://www.tcs.com/who-we-are/newsroom/press-release/tcs-financial-results-q4-fy-2023