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In today’s newsletter:

1. 📖 16 Transformations in How Enterprises Build and Purchase Generative AI Solutions

2. 🤖 A Resource with 100+ AI Business Tools (Bookmark This)

3. 🏫 Newsletter about AI: The Rundown

4. 🎤 One prompt you can use at work today

Read time: 4 minutes

1. 16 Transformations in How Enterprises Build and Purchase Generative AI Solutions

Andreessen Horowitz (a16z) published a great summary of the 16 changes to how enterprises build and buy generative AI in 2024.

The two main takeaways for me:

1) Average enterprise spend on LLMs will go from $7M in 2023 to $18M in 2024, a 2.5x increase 

2) Only 40% of enterprises are focused on measuring ROI on LLM spend, and 60% are not measuring or considering ROI at all.

Here’s a summary of all the 16 changes:

1. "Budgets for generative AI are skyrocketing."

2. "Leaders are starting to reallocate AI investments to recurring software budget lines."

3. "Measuring ROI is still an art and a science."

4. "Implementing and scaling generative AI requires the right technical talent, which currently isn’t in-house for many enterprises."

5. "A multi-model future."

6. "Open source is booming."

7. "While cost factored into open source appeal, it ranked below control and customization as key selection criteria."

8. "Desire for control stems from sensitive use cases and enterprise data security concerns."

9. "Leaders generally customize models through fine-tuning instead of building models from scratch."

10. "Cloud is still highly influential in model purchasing decisions."

11. "Customers still care about early-to-market features."

12. "Most enterprises think model performance is converging."

13. "Optimizing for optionality."

14. "Enterprises are building, not buying, apps—for now."

15. "Enterprises are excited about internal use cases but remain more cautious about external ones."

16. "Total spend on model APIs and fine-tuning will grow to over $5B run-rate by the end of 2024, and enterprise spend will make up a significant part of that opportunity."

Click here to check out their full article about those changes (worth reading).

2. A Resource with 100+ AI Business Tools (Bookmark This)

One thing that’s been super hard (and frustrating) for me to do is keep track of all the AI tools that keep popping up.

So, I started putting together a list of those tools to help you manage your business and increase productivity.

I’ve published the list on my website and categorized them into functional categories to keep things simple.

Click here to check out my Ultimate List of AI Tools for Business and Productivity

Two things:

1. Make sure you bookmark the link because I’ll be updating it often

2. If you think I’m missing a tool, please email me and let me know. I’ll be happy to add it.

3. Newsletter about AI: The Rundown

This week’s newsletter is sponsored by The Rundown, a newsletter that covers daily updates about AI tools and workflows. More details below.

Learn how to make AI work for you.

How do you stay up-to-date with the insane pace of AI? Join The Rundown – the world’s fastest-growing AI newsletter with over 500,000+ readers learning how to become more productive using AI every morning.

1. Our team spends all day researching and talking with industry experts.

2. We send you updates on the latest AI news and how to apply it in 5 minutes a day.

3. You learn how to become 2x more productive by leveraging AI.

Subscribe with one click.

4. One Prompt You Can Use at Work Today

Here’s a practical ChatGPT Prompt you can use at work:

For example,

P.S. If you’re interested in learning more about simple strategies and frameworks for using AI with your team at work, I recently published a book on Amazon called “Generative AI for Busy Business Leaders” that you can check out by clicking here. (Only $0.99)