Wednesday, September 18, 2024

How Will Generative AI App Adoption Compare to Internet App Adoption?

Many observers expect generative artificial intelligence applications to gain substantial use even faster than internet apps. That might imply very rapid adoption indeed. But it also is possible that adoption at scale might take longer than some expect.


By some estimates, it might have taken about five years for 10 percent of U.S. businesses to begin using internet apps to any significant degree, and that includes email. 


Year

Estimated % of U.S. Businesses Using Internet Apps

1995

1%

2000

10%

2005

30%

2010

50%

2015

70%

2020

85%

2023

90% (est.)


In fact, email might be the most-common internet use case embraced by most businesses. 


Year

% of U.S. Businesses Using Email

1980

1%

1990

10%

1995

30%

2000

60%

2005

80%

2010

95%

2020

99%


U.S. business use of web sites lagged email adoption by roughly five years. 


Year

% of U.S. Businesses Using Websites

1990

1%

1995

5%

2000

20%

2005

50%

2010

80%

2015

95%

2020

99%


But if AI apps and services are likely to be adopted faster than internet services were between 1996 and 2005, especially for consumer applications, there are some logical reasons. 


For starters, the whole internet infrastructure, including broadband access, multimedia, browser and so forth, had to be created. AI, on the other hand, as a “software” development, will be applied to existing applications, processes and use cases. 


That noted, we are likely looking at five to seven years before use of consumer-facing AI apps and usage is common. 


In the period from 1996 to 2005, for example, as the internet was popularized, a large number of new behaviors developed. Prior to 1996, for example, people were unlikely to be using:

  • Web Browsers and Email

  • Search Engines (Google was not founded until 1998)

  • E-commerce

  • Social Networking

  • Instant Messaging

  • File Sharing

  • Blogging and user-generated content


Likewise, businesses were unlikely to use or have:


  • Web sites

  • E-commerce (PayPal was not founded until 1998

  • Digital Marketing (Google AdWords was not introduced until 2000)

  • Customer Relationship Management (Salesforce.com was founded in 1999)

  • Enterprise Resource Planning (ERP)

  • IP-based Communication and Collaboration (Skype was founded in 2003)

  • Supply Chain Management

  • Online Recruiting  (Job boards such as Monster.com appeared in 1999)


source: eMarketer 


If we look at consumer internet app adoption, uptake was quite rapid, suggesting that AI adoption could be quite rapid indeed. If consumers widely adopted internet apps about four years after initial introduction, then AI could well be widely used by consumers within two years. 


Company

Founded

Widespread Use

eBay

1995

1998

Amazon

1995

1999

Craigslist

1995

2000

Google

1998

2001

PayPal

1998

2002

Wikipedia

2001

2004

Facebook

2004

2007

YouTube

2005

2007

Twitter

2006

2009


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