The investment world is currently experiencing a new frenzy as a result of the Artificial Intelligence (AI) wave that is radically reshaping the business landscape. This momentum creates enormous opportunities for rapid capital appreciation, but at the same time raises the risk of a new bubble — possibly bigger than the dot-com bubble. Although artificial intelligence is a decades-old technology, the current acceleration is due to genetic artificial intelligence (Generative AI) and huge investments in infrastructure (compute, cloud, specialized hardware). These factors make products, services and business models that were unimaginable until recently possible possible. In this environment, AI has a catalytic impact on innovation, start-up entrepreneurship and, by extension, investment activity. This impact can be reflected in three main areas:
1. Impact on Product
a. Creation of completely new products and services. Leveraging GenAI’s capabilities allows for the development of applications that did not exist before, creating markets from scratch. Examples include autonomous decision-making systems, fully automated content creation tools, or special-purpose AI in industries such as healthcare, legal technology, or education, etc.
b. Enhancement of existing products and services. Existing software products and more are being radically upgraded through:
- process automation with AI agents and workflow automations,
- new user interfaces such as conversational interfaces,
- automation in data entry,
- personalization (hyperpersonalization) using intelligent algorithms.
c. Combining AI with hardware. The coupling of AI and hardware brings new robotic systems, advanced sensors, autonomous drones, as well as space applications that previously required huge R&D investments.
d. Development of basic AI infrastructure. Artificial intelligence itself is now an autonomous product category: from high-performance cloud infrastructures and security systems (AI cyber security) to model management tools, fine-tuning and large-scale deployment.
2. Impact on the Business Model
AI fundamentally changes the way a service is produced, priced and distributed.
a. Cost reduction through automation.
Automation allows:
- drastic reduction of operating costs
- change of cost structure
- reduction of human resources in repetitive processes
b. Creation of new variable costings.
At the same time, this creates new costs, often unpredictable:
- charging for the use of GenAI infrastructure
- increased dependence on third-party model providers
- uncertainty about future compute pricing.
The result is that the financial indicators of a business model (profitability model, required capital, scalability) change significantly and require constant reassessment
3. Impact on Speed and Development Cycle
AI has dramatically compressed the time frame for product development.
a. Acceleration of MVP (Minimum Viable Product) creation While in the recent past, creating a SaaS MVP required 6–12 months, today this time has been reduced to 3–6 months, often with a much smaller team and lower cost.
b. Faster market feedback and increased ability to pivot Reducing development costs and time allows for:
- more frequent market contact
- faster business validation
- easier pivoting without high sunk costs
This creates a new business environment, where startups can move at previously unimaginable speeds, but investors are more demanding about what to expect, especially from early-stage companies. In conclusion, AI is not just a technological development but a cross-sectoral shift that affects the core of business creation and investment strategy. The opportunities are enormous, but they are accompanied by systemic risks — whether from excessive valuations or overreliance on third-party infrastructure and models.
To enhance existing ones, or to develop deep-tech solutions with global perspectives.
For investors and entrepreneurs, the challenge is twofold:
- To identify which businesses are creating real value through AI, and not simply placing the label “AI-powered”
- To shape strategic investments that balance innovation with risk management, in an environment where speeds, costs and markets are changing extremely quickly.
