Over the past three years, Artificial Intelligence has primarily functioned as a cost-cutting tool across various industries. However, experts believe that we are on the verge of a 'second wave' of AI, which will focus on the creation of novel products, applications, games, and services that could not have existed before the advent of advanced language models. This shift represents a significant transformation in the way AI is perceived and utilized, moving from mere automation and efficiency to the generation of entirely new user experiences.

Kylan Gibbs, a former product director at Google DeepMind and now leading the AI startup Inworld, underscores the importance of this transition. He draws a clear distinction between the first wave of AI, which optimized existing processes and reduced costs, and the forthcoming wave that aims to innovate and create new revenue streams. This evolution in the AI landscape is expected to influence numerous sectors, potentially changing the dynamics of market competition and consumer engagement as companies start to leverage AI for innovative creations rather than just efficiency gains.

As this 'second wave' begins, it poses existential questions about the role of artificial intelligence in our future. The possibility of generating new products and experiences raises the stakes for both technology firms and consumers, as they navigate the implications of these advancements. Investment in AI startups with a focus on creative development is anticipated, reflecting a growing belief in the transformative potential of this technology beyond conventional applications.