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ZDNET’s key takeaways
- Information technology jobs are increasingly threatened by AI.
- AI also opens up new doors of innovation for startups.
- At the same time, AI adds more complexity to startup scenarios.
Study computer science or related aspects of information technology, get a job at Chipotle?
Artificial intelligence appears to be subsuming many coding and technology jobs, according to a recent gloomy article by The New York Times’ Natasha Singer.
“The spread of AI programming tools, which can quickly generate thousands of lines of computer code — combined with layoffs at companies like Amazon, Intel, Meta and Microsoft — is dimming prospects in a field that tech leaders promoted for years as a golden career ticket,” Singer wrote.
Also: Want a job in tech? You need these skills, McKinsey study shows
There are three ways of looking at AI in terms of career prospects. One is the job-killer, noted above. Another is to immerse oneself in AI development and oversight skills, which are in demand.
Then there’s a third option. AI may be the lever that lifts professionals’ paths into the startup space, opening up abundant opportunities. Ultimately, it may help people more successfully launch and guide their startups.
“AI makes it easier for founders to launch new enterprises, said Spiros Margaris, a leading global venture capitalist in the fintech space and founder of Margaris Ventures. Margaris shared his perspectives on startup opportunities with us. “With the right large language models and data skills on your team, you can automate a significant portion of your operations, test ideas faster, spend less, and reach profitability sooner, if customers like what you’re offering.”
Also: Can you build a billion-dollar business with only AI agents (yet)? This author thinks so
AI could help wring out some of the risk that accompanies launching one’s own venture — the fear factor that stops people in their tracks from leaving the formal job market. Almost half of the one million startups started annually within the US will fail within the first five years, according to tracking data from the US Bureau of Labor Statistics. Eventually, up to 90% will fail, due to competition, misguided product strategies, or overwhelming costs.
AI’s greatest advantage for testing new business ideas is speed. “What used to take months or years can now be prototyped and tested in weeks,” Margaris said. “Just as we saw with fintech democratizing the financial industry, we’re seeing the same with AI. It allows smaller players to level the playing field against large corporations by providing capabilities that previously required deep pockets, investments that only large corporations could afford. Now, thanks to AI innovations, these capabilities are accessible with far fewer resources.”
At this point, AI should be at the core of most, if not all, startups, he added. “Many startups were already using AI in some form before ChatGPT changed the game. Even those not using it yet are figuring out how to integrate it into their strategy. If you want to survive, grow, and raise money, becoming AI-first isn’t optional anymore.”
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AI is being leveraged everywhere in today’s startup scene. “Fraud detection, marketing, e-commerce, hiring, coding, you name it,” said Margaris. “Machine learning was already in play before OpenAI reset our expectations of what’s possible. Look at Meta’s recent numbers: No matter how massive AI spending seems, it’s only going up, and the payoff is coming faster than most industry observers thought possible. As AI advances its capabilities, startups will continue finding innovative ways to use the technology to their benefit and ultimately ours.”
There are even observers who say it’s possible for an individual — or very small team — to build a billion-dollar business with now widely available AI tools.
At the same time, AI adds more complexity to startup scenarios, said Margaris. “AI isn’t a free lunch, even if it feels magical when it works. It can reduce risk, help with compliance, and improve auditability, but it can also create new headaches. It’s two sides of the same coin.”
He added that cybersecurity also needs to be at the forefront of new ventures. “The threats are getting sharper as AI is used both to defend and attack. That’s a fight every startup must be ready for, and it will only become more complex with issues like intellectual property disputes and data privacy regulations.”
Also: The AI complexity paradox: More productivity, more responsibilities
Margaris has advice for those wishing to start a new business and how AI can help. “Build a team that understands AI, data science, governance, and ethics. Never lose sight of the AI regulatory environment, which could have a profoundly negative impact on your business if you don’t monitor it closely.”
Importantly, “tools don’t win; people do,” he said. “A great driver will beat a good one in the same car. It’s the same with AI. The right team and mindset make all the difference. My advice? Dive in and start experimenting now. If you hesitate, your competitors won’t and they’ll capture your market before you’ve even started.”
