🥧 Feast on the $15.7 Trillion AI Pie...
🥧 Feast on the $15.7 Trillion AI Pie...
Plus: Helper bots 🦾, pulsating aliens, a 1M user-strong MySpace clone & insider secrets to startup scaling in SA.
Got game? Watch these researchers run the 1993 Doom game in real-time AI. So it’s not perfect (yet), but there’s no game engine, just a neural network simulating the game in real-time, based on user inputs. This is basically the first step towards really complex text/voice-to-game gen.
In this Open Letter:
- Make’em machines work: Using AI to make SA companies Rmillions.
- Helper bots, pulsating aliens & the 1M user-strong MySpace clone.
- Learn to scale: Your business growth strategy, sorted.
- How you prefer to enjoy a book: The results are in.
- Startup fuel: Share this 10 times and get Pro membership.
Together with:
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TRENDING NOW
Making Sense of Data and Machines
Before the launch of ChatGPT in November 2022, most people’s understanding of Artificial Intelligence was that it was the thing that empowered Skynet to take over the world…
Within 5 days of its launch, ChatGPT hit 1 million users (for context, Instagram took 2.5 months and Netflix 3.5 YEARS to hit 1 million users).
Suddenly everyone knew something about AI. And pretty soon, it became the buzzword getting thrown around boardrooms like: “Well, how do we integrate our product/service/offering with AI?”
And it’s not surprising everyone wants a slice of the AI Pie…
There’s big money at play for AI. As more and more AI tools hit the market, their use cases get bigger and bigger, with some estimating that AI could contribute as much as $15.7 trillion to the global economy in 2030.
But not everyone is ready for the AI boom
There have already been a bunch of now-famous AI blunders…
Air Canada had to fork out over CA$800 to a grieving passenger after its AI chatbot gave them the wrong info about the airline's bereavement fares.
AI-generated sports articles came under fire after it was found that Sports Illustrated published articles by fake authors (including their AI-generated headshots), while another publication was forced to pause its AI tool covering high school sports after it missed out on key information (like, you know, the teams’ names).
Or the use of AI recruiting tools that reject applicants based on their (older) age, or Amazon’s AI recruiting tool that only recommends men.
Not to mention deep fakes, AI’s use in scams and a bunch of other not so lekker stuff.
A local AI Agency making big plays
The above scenarios could be attributed to a variety of reasons, from newly launched AI companies to top management not fully grasping how their businesses could benefit (or not benefit) from AI.
But where the power of AI really shines is where there is a large amount of data, if processed, that could show areas of improvement or optimisation.
That’s exactly what local data and applied AI startup Spatialedge is helping many of Africa’s largest multinational enterprises develop bespoke AI solutions that solve some of their biggest business headaches.
The team has built over 170 bespoke solutions, including:
- A Markdown Tool to help Pepkor achieve a 92.7% sell-off rate (meaning they do not have stock left at the end of the season, and the discounts offered didn’t sink them)
- A proactive model to forecast accident hotspots to bring a 30% decrease in road fatalities over a major long weekend.
- A predictive maintenance solution for a mining client to determine when tyres needed replacing, resulting in a decrease in income loss due to operational halts to the tune of $500’000 per month.
They’ve been around since 2017, working closely with big retail clients like Vodacom, Pepkor, and Ackermans. They recently surpassed R300 mil in revenue which helped them secure R60 million in funding in April this year.
Something we found interesting is that their preferred hire is someone with an industrial engineering degree. Why? They are often technical enough to understand the tech part, but it's the operational design thinking that helps them identify where in a business machine learning can best add value.
With the race to the top in AI still going and local players like Spatialedge making a big impact for their clients, we’re watching this space…
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IN SHORT
👚 Super”bye”list. Takealot announced on Monday that it has sold its struggling online fashion retailer, Superbalist, to a private equity consortium led by Black Canvas Capital.
🤖 Robots pretending to be Human. 1X Robotics has unveiled a beta version of its humanoid robot Neo. Back by OpenAI, Neo has advanced movement and agility due to its bioinspired actuators and advanced vision systems.
👽 Contact. Over the weekend an Astronaut rang up NASA’s ground crew to report a repeating “almost like a sonar ping” coming from a speaker onboard the Boeing Starliner craft. Listen to the call and the sound in the article.
💰Life Tyme. Sanlam Life is set to acquire a 25% stake in African Rainbow Capital Financial Services Holdings Proprietary Limited (ARC FSH). ARC FSH has existing investments in Tyme Bank, AI Fund, CrossFin and Ooba.
💼 Die Kantoor. SA is getting its very own version of ”The Office”. Local streamer Showmax has secured the rights to adapt the show, making it the 14th international adaptation of the hit show. Filming will be done primarily in Afrikaans and will kick off in 2025.
🚀 The Stack. Founders need tools and suppliers they can trust. Check out our Founder’s Stack with project management tools like Notion and super-easy social payment collection with WigWag.
Builder’s Corner
When (and How) to Get Serious about Strategy
Written in conjunction with Metavolve.
We have all heard how important strategy is, but, man, oh man, can people make it fluffy. So today, we asked scale strategy specialists Metavolve to share their framework for developing a scaling strategy.
Here are the four key pillars of developing a world-class scaling strategy :
Pillar 1: Market positioning
Understanding your market positioning is all about understanding who you compete with, what makes you different and why it matters.
Who you compete with could be someone with a similar product, but for most SaaS companies, they simply go up against MS Excel (or Google Sheets). This means that instead of using your product, they rely on a tool which is currently free (albeit clunky).
There are big differences in how we position and sell when our main competitor is Google Sheets as opposed to some other great product.
Pillar 2: Competitive advantages
Ask the question, “Mr customer, how can I serve you better?” and that means being able to solve the need better than anyone or anything else.
This includes:
- The customer experience through your product and engagement
- Addressing their actual pains as opposed to perceived pains
What is less obvious is that it sometimes means cutting down on your offering or actually doing nothing. That’s right. Finding your competitive advantage is about doubling down on that which matters most and where you can win.
Pillar 3: Customer Experience
The customer experience is crucial in retaining existing customers and landing new ones.
In fact, nearly 90% of customers value the customer experience a company provides just as much as the product or service it’s offering.
So key questions to have the answers for include:
- How stress-free is it to work with your company?
- Does your value proposition align with your customer’s needs?
- Does it leave anything up to chance?
- Does the experience set, meet and exceed your customers’ expectations?
- Is it an emotionally positive experience?
- Does the experience provide positive benefits and make your customer feel good?
It’s also important to remember that customer experience is not the same as user experience! It’s the qualitative experience they have at each and every touchpoint with your business. It’s how they feel about it.
Pillar 4: Growth strategy
There are many different ways to grow your business. Anywhere from vertical or horizontal integration, diversification, Geo-expansion, or even good old organic growth from selling the same thing to more customers, proving your organisation’s ability to retain and add new customers.
But sometimes, the shinest looking thing might not be the right fit. You’ve got to be growing in the way that makes the most appropriate choices, given the unique circumstances your company is in, to help maximise your chances of achieving the best possible results.
If you want to get stuck into strategy, we have two amazing offers for you:
- Come join our free LinkedIn Live session with Metavolve this coming Friday (6 Sept ‘24) between 12:00 and 13:00, where we will practically unpack each of these pillars further. Book your spot here.
- Or… Exclusive for Open Letter readers, book a 45-minute call to get going with your strategy.
Engage SA’s Most Vibrant Startup Community
Recently, in our online community, we…
- Learnt about a host of absolutely 🔥 podcast guests coming up in the next few weeks.
- Tested some seriously cool WhatsApp-based AI polling and interviewing tech.
- Welcomed so many new members, it’s starting to hum in here…
Coming Up This Week
- Wednesday 10-11: Office Hours, where we all log in and work together, + the whole Open Letter team is at members’ disposal.
- New: Free monthly startup strategy calls for all pro members.
- Support: All day, every day: unlimited introductions, recruitment, service provider referrals and business-building insights.
All for only R250 a month. Go Open Letter Pro today, and let’s build together…
What You Said…
We asked what you read most, and paper books’re the way…
🟩🟩🟩🟩🟩🟩 📚 Physical books – I influence Exclusive Books’ Top 10 shelf (42%)
🟨⬜️⬜️⬜️⬜️⬜️ 📱Reading apps like Bookt (7%)
🟨🟨🟨🟨⬜️⬜️ ✉️ Emails and other work-related documents (29%)
🟨⬜️⬜️⬜️⬜️⬜️ 🗞️ The news (7%)
⬜️⬜️⬜️⬜️⬜️⬜️ 📺 The subtitles on Netflix count as reading, right? (3%)
🟨⬜️⬜️⬜️⬜️⬜️ 🔥 Startup, tech and business trends in The Open Letter (12%)
Your 2 cents…
“Love the feeling of paper between the fingers! But platforms like Everand and Perlego is also amongst my top platforms to access great books! And the occasional Kindle download when Takealot does not have stock!”
Herman
Sounds like you just enjoy a healthy reading habit. Nice one, Herman 📚☕
“I use Kindle and have invested in that eco system. Have found that it is quite useful as can send PDF there as well. Had a look at the book list and it is quite limited. I assume that the idea is that it becomes a distribution for ebooks. However, would be good to see whether it can tap onto other eco-systems.”
Muller
Hmm, good insights, Muller, sure Bookt is enjoying and learning from your engagement here 💯
“I generally shop for my books online and find Loot to be the best. Readers Warehouse is also well-priced. I enjoy going into a bookshop and browsing and then buy whatever I am interested in online.”
Lauren
Wonderful, Lauren, sounds like you know where the get all the good reads (and the best deals) 💌📖
"’Physical’ as in audio books I read while exercising or driving”
GJ
He he, love it GJ! Always on the move… 👟🎧📕