One Man Conglomerate, #03. As a result, the paradigm of the market will change significantly. [PART I]

The following is English version of Chapter 2 of ‘One Man Conglomerate’, published in August 2023 by Do-Jeon, Marcus, Jeong.

 

2nd Chat: How will our lives changes?

 

#03. As a result, the paradigm of the market will change significantly.

 

[01] The barriers to entry in various areas will be lowered.

 

With the development of artificial intelligence technology, especially Generative AI technology including ChatGPT, the entry barriers for various businesses will be significantly lower than today.

ChatGPT is really versatile. First of all, the most surprising advantage of ChatGPT is that it can communicate in natural language, that is, human language. In addition, he writes various kinds of writings (e-mail, novels, speeches, reports, etc.), speaks more than 45 languages, and has excellent coding and debugging skills. Of course, data can be compared and analyzed and opinions can be presented, and can be applied to various businesses and platforms (e.g., the web, apps, etc.). In addition, it can be used 24 hours a day, 365 days a year.

So, for example, a student with no coding knowledge can become a developer with a little bit of sense. This is because one of the things ChatGPT is good at is coding. You can request anything (web, app, etc.) and it will generate the code in a matter of seconds. You can then type the code into the chat window and it will find the error and fix it in a matter of seconds. As anyone who’s ever coded knows, errors often go unnoticed when you’re pressed for time. GPT-4 can also recognize images. So you can upload a hard-to-understand deed or blueprint and get a detailed explanation.

In addition, the “Chat GPT Plug-in” allows users to link external services to check real-time news and stock prices, book hotels and flights, and order food. As a result, the role of ChatGPT can be greatly expanded through the plug-in.

In addition, other generative AIs, such as ChatGPT, are capable of improving human performance to a remarkable degree. This will enable companies and individuals to take on business challenges that were previously out of reach. This is because technical and cost barriers will be significantly lowered.

 

Image: developed by Midjourney

 

 

[02] The language barrier will also gradually disappear.

 

The Language Barrier, which was caused by the Tower of Babel, is likely to disappear into history soon. GPT-4 can answer naturally in more than 45 languages, and Google’s Bard supports 46 languages. Of course, there are still translation engines such as Google, Papago, and Kakao i(ai). However, it is not possible to have conversations in real time, using various languages, as in GPT-4 or Bard.

In particular, the Korean language skills in GPT-4 has improved remarkably compared to GPT-3.5. I even think that the the word “Il-chwi-wol-jang” (日就月將, improving day by day) should be used in this case. If there is even voice support, it will be the icing on the cake. In Korea, there are many talented people who can not lag behind even if they are put in the global market. But it has yet to shine. Because their foreign language skills (especially English) were not fluent. Therefore, even though they had too much expertise in related fields, they disappeared silently due to their foreign language skills. Of course, there were countless people who were used by opportunists who were only good at foreign languages without work expertise.

However, these absurd situations will be greatly reduced. This is because a variety of new AI models will break down the language barrier that has plagued Koreans for so long. Therefore, the number of high-ranking Korean executives will increase in global companies, and the number of Korean professors will increase significantly in overseas universities. Of course, there will also be side effects from this. For example, there is a high possibility that the sense of belonging to the Republic of Korea will decrease.

 

 

[03] So the competition will become more complex and fierce.

 

As AI developments lower the barriers to entry in many areas and gradually eliminate language barriers, competition in the marketplace will become more complex and intense than it is today, i.e., more multi-dimensional, less influenced by company size (e.g., by revenue), business field, and borders than in the past.

For example, if advances in AI technology increase the number of producers (or suppliers) who are “up-leveled” among market participants, the supply of products (or goods or services) will increase. Typically, this will result in products that are ‘price-cutting’, but also products that are ‘differentiated through market segmentation’ (e.g., by use, design, price, etc). And soon, competition between products will become fierce.

In order to survive, producers will use various methods to collect feedback from consumers. Through this process, they will better understand the needs of consumers and improve their products. This improved product information will then be spread online (online media, social media, online shopping malls, etc.) and exposed to consumers. Consumers will focus on the “product itself” (i.e., design, reviews, etc.) rather than the size or nationality of the company that made it, because the product will have already been leveled up to some extent by the application of AI technology. And AI will be able to compare (or suggest) products that are suitable for that consumer with an objective view.

And this phenomenon will quickly spread to other product lines and markets in other areas (or sectors or industries).
This shift in the marketplace will put smaller companies on a more favorable playing field, as they will be able to compete with much larger companies on the strength of their products alone. This means that even if they don’t have the manpower or capital to do so, they will still be able to bring differentiated products to the global online marketplace (e.g., online platforms) with the proper use of AI. So the more AI technology advances, the more opportunities are likely to open up for individuals, small businesses, and microenterprises with lots of ideas. This is because it will be much easier to execute than in the past.

 

 

[04] Of course, that’s why a one-man conglomerate will also emerge.

 

As AI technologies such as ChatGPT continue to develop and language barriers gradually disappear, one-man conglomeration will also emerge. Until now, there have been physical and time limitations on what a single person can do. Even though many technologies such as ICT (Information and Communications Technology) and office automation have advanced considerably, someone still needs to check and process them.

However, if “AI agent models” such as AutoGPT, which applies GPT-4, are commercialized and advanced, humans will no longer need to check and handle everything themselves, because AI agent models will be able to write prompts and complete tasks on their own, meaning that AI and humans will be able to share roles like team members. Of course, AutoGPT is still in the early stages of development, so there are limited tasks that it can handle on its own, but as the models get more advanced, they will be able to do a lot of work for and on behalf of humans.

And if there is something that is not possible or efficient to do internally, it can be outsourced (including external AI models). It will also be possible for AIs inside and outside the organization to collaborate on projects. And if other generative AIs, technologies related to the Fourth Industrial Revolution, and smart production are established in earnest, one-man companies and even one-man conglomerates will emerge.

One-man conglomerates will emerge in a variety of industries and sectors. For example, movie studios and broadcasters targeting global markets, construction companies, fashion, electrical and electronics, automotive, including electric vehicles etc. And even if they start out as a single business, they will likely expand into a holding company structure. So it’s time to stop thinking that a construction company or an electric car manufacturer has to be a group of people and operate on a large scale.

 

[ Attention ]

The above article excludes footnotes and details, unlike the actual book.
Please read the following post for details of “#03”

위 글은 정도전 작가가 2023년 8월에 출간한 ‘1인 대기업(One Man Conglomerate)’의 챕터2 영문 버전입니다.