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 Natasha Singer, The New York Times, wrote an article .
“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 to work in tech? McKinsey’s study shows that you need these skills.
There is more than one way to look at AI from the perspective of career prospects. One is the job killer, as noted above. One way to do this is to learn AI development and oversight skills. These are in high demand.
There’s also a third option. AI could be the lever to lift professionals into the startup world, allowing them to take advantage of many opportunities. It may ultimately help people launch and guide their startup more successfully.
“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 with us his views on the startup opportunities. “If you have the right data and large language models on your team, then you can automate an important portion of your operations. You can test ideas faster, save money, and reach profitability quicker, if your customers like what you offer.”
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. Up to 90% of all new business ideas will fail due to a combination of factors, including competition, misguided strategies or high costs.
AI has the greatest advantage in testing new business ideas. “What used to be months or years ago can now prototyped and tested within weeks.” Margaris said. “We’re seeing this with AI, just as we saw fintech democratizing financial industry. It allows smaller companies to compete with large corporations, by providing capabilities previously only available to large corporations. These capabilities are now available with fewer resources, thanks to AI innovations.”
At this point, AI should be at the core of most, if not all, startups, he added. “Before ChatGPT, many startups were already using AI. Even those who haven’t yet adopted it are learning how to integrate it in their strategy. AI is no longer optional if you want to grow, survive and raise money.”
Also: A year after Altman said superintelligence was imminent, GPT-5 is all we get?
AI is being leveraged everywhere in today’s startup scene. “Machine learning had already been used in fraud detection, marketing, ecommerce, hiring, and coding before OpenAI changed our expectations. Meta’s latest numbers show that no matter how huge AI spending appears, it will only increase, and the payoff will come faster than most industry watchers thought possible. As AI’s capabilities continue to improve, startups will find innovative ways to utilize the technology for their benefit and ultimately for 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 doesn’t come for free, even though it may seem magical when it works. It can reduce risks, improve compliance and auditability, but can also cause new headaches. Both sides of the coin.”
He added that cybersecurity also needs to be at the forefront of new ventures. “As AI is used to both defend and attack, the threats are becoming more acute. This is a battle that every startup should be prepared for. It will only get more complex as issues such as intellectual property disputes and privacy regulations become more prevalent.”
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. “Create a team with a deep understanding of AI, data science and governance. Don’t lose sight of the AI regulation environment. It could have a profoundly damaging impact on your business.”
Importantly, “Tools don’t win, people do.” he said. “In the same car, a great driver will beat an average one. It’s the exact same with AI. The right team with the right mindset can make all the differences. What’s my advice? Start experimenting and dive in. If you hesitate, you will lose out to your competitors who won’t hesitate and will take your market before you even start.”
