Industry Thoughts: AI And The Next Industrial Revolution

Discussions regarding AI (artificial intelligence) have been prominent across the angel and venture capital industry for years. As the industry develops, we constantly ask ourselves what new developments may occur and how expanding AI technology will shape the future of work.

The online personal styling service StichFix recently announced a round of layoffs. Such a move raised our interest because a year ago StichFix launched an AI service to begin selecting styles for customers independent of its human stylists. Could these layoffs be another sign of companies swapping workers for algorithms?

Training the Algo

Buzzfeed has a detailed article regarding the layoffs where employees are quoted saying they “knew from the beginning we were teaching the algorithm”. Are we beginning to see a new class of workers who move between companies to train algorithms? Maybe it’s the creative and adaptable abilities which allow for the growth of an Artificial Intelligence Training or “AIT” economy? The Buzzfeed article implies there may be some truth to this idea as StichFix appears confident enough with its AI progress to begin downsizing its team of human stylists.

So Now What?

As an angel investor, we tend to be the ones looking around the corner of the world to understand the future. Training AI, or AIT workers, may become the next hot career for those experienced with training algorithms ranging from improving last mile autonomous driving to perfecting the latest fashion trends.

If we consider the broader perspective where these changes may lead, the path appears one where human employee are increasing displaced as machine learning improves. Our hope is transitioning repetitive work to machines creates opportunity to continue advancing overall society. Similar to how computers drove the technology revolution and created an inflection point in productivity and development of new industries.

AI may be this next inflection point for society. While we are early in the process, indicators such as StichFix increase our belief the AI industry is growing at an increasing pace and adoption is happening across a greater number of industries. The computer may have been the driving force for the technology industry, but AI appears to be much closer to creating the next inflection point and an area we are watching with increased interest.