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The AI Spectrum for Founders

nfx.com · 1,906 words · saved by 1 readers

We suspected this last year, but we know this emphatically today: The majority of companies we see will have some degree of an AI component. AI is simply the new table stakes. AI is like water. It’s everywhere. So now the race is on to come up with a few great answers to this question: What can we do now because of AI that was truly impossible before? How can we creatively deploy AI in ways that create lasting value for users? To do this, we want to share how we’re seeing AI applied right now and what we’re excited to see in the future. Some companies are simply juiced by AI. Others are AI-First. To help compare apples to oranges as we’re reviewing new AI ideas and companies, we developed a 5-Level AI Spectrum. It starts with Level 1, the “entry level” use of AI to enhance existing processes. It goes up through Level 5 which is where we expect to see AI-First ecosystems. Level 5 is where we’re most excited about investing. These are the companies that simply weren’t possible before AI.

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