AI Adoption Surges at Unprecedented Pace, Outstripping Previous Tech Revolutions

It’s not just your imagination—AI is changing the world at an unprecedented pace. If it feels different from previous technological advancements like mobile, social media, and cloud computing, that’s because it is. Mary Meeker, the venture capitalist and former "Queen of the Internet," recently released a 340-page report titled "Trends — Artificial Intelligence." In this comprehensive document, she uses the term “unprecedented” no fewer than 51 times to highlight the rapid development, adoption, spending, and utilization of AI. Each page is filled with charts and data to support her observations. Meeker, now the founder and general partner of VC firm Bond, previously made a name for herself with her annual Internet Trends reports. During her tenure at Kleiner Perkins from 2010 to 2019, she backed successful companies like Facebook, Spotify, Ring, and Block (formerly Square). Her latest report marks her return to trend analysis after a hiatus of four years, and it meticulously documents how AI adoption has surpassed any other technology in human history. One of the most striking examples is ChatGPT, which managed to amass 800 million users in just 17 months—a feat never before seen in the tech world. The number of companies achieving high annual recurring revenue rates is also unprecedented. Another key metric is the rapid decline in usage costs. While training a new AI model can cost up to $1 billion, the cost of inference—using the technology—is plummeting. According to Meeker, the cost per 1 million tokens has dropped by 99% over two years, a figure derived from research by Stanford University. The competition among AI developers is fierce and also moving at an unparalleled rate. Companies are rapidly replicating and improving upon each other's features, often at a fraction of the cost. Open-source AI models, particularly those from China, are playing a significant role in this race. For instance, Nvidia’s 2024 Blackwell GPU is 105,000 times more energy-efficient per token than its 2014 Kepler GPU. This efficiency is not just a side project but a critical component of foundational strategies, as seen with Google’s TPU (tensor processing unit) and Amazon’s Trainium, which are being scaled for cloud services. Despite the blistering speed of AI adoption and innovation, financial returns remain a question mark. Venture capitalists are pouring funds into AI companies as quickly as possible, but these firms and cloud service providers are also burning through cash at an alarming rate. Building and maintaining the necessary infrastructure for AI is an expensive endeavor. However, this is good news for consumers and businesses, as rapid improvements and fierce competition are driving down costs. Meeker acknowledges that it’s too early to determine which of today’s AI companies will emerge as the next generation of tech giants. “Only time will tell which side of the money-making equation the current AI aspirants will land,” she writes. For now, the focus is on continued innovation and the widespread benefits it brings. For the rest of us, the message is clear: buckle up. The pace of change in AI is both exhilarating and challenging, and it promises to reshape industries and daily life in ways we are only beginning to understand.