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The Unsexy Future of Generative AI Is Enterprise Apps


Some buzzy generative AI startups are now finding they need to generate cash instead. One possible solution: narrowing their offerings to woo business clients, if they can kick the hallucinations first.

In February, Bret Taylor, the former co-CEO of Salesforce, and Clay Bavor, a prominent former Google executive, announced that they had teamed up to launch Sierra, which uses generative AI to make brand chatbots smarter and able to perform requests like rescheduling a delivery. Pitchbook senior analyst Brendan Burke noted in a report that venture capital funding was increasingly being funneled towards “underlying core AI technologies and their ultimate vertical applications, instead of general-purpose middleware across audio, language, images, and video.” Clay Bavor, the cofounder of Sierra, says he believes it’s not necessarily computing or cloud API costs driving AI startups towards B2B models, but more likely the benefits of targeting a specific customer and iterating on a product based on their feedback.

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