The Fifth Industrial Revolution and Achieving 1 Trillion Inferences a Day within the Enterprise
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Welcome to the Future of Enterprise Automation
The Fifth Industrial Revolution (5IR) is here, transforming business operations by seamlessly integrating advanced artificial intelligence (AI). Unlike previous revolutions, 5IR emphasizes collaboration between humans and intelligent machines.
At Kamiwaza, we believe 5IR companies will automate 25-75%
of their operations through AI, setting new standards for efficiency and innovation.
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Why 5IR Matters
Leveraging AI, 5IR aims to achieve unprecedented productivity. According to McKinsey, generative AI can automate work activities that currently absorb 60-70% of employees’ time.
This transformation is due to AI’s enhanced ability to understand natural language, enabling the automation of tasks that account for a significant portion of work time.
The Path to 1 Trillion Inferences a Day
Achieving 1 trillion inferences a day is within reach for enterprises that strategically integrate AI into their workflows. Here's how different scales of workflows contribute to this goal:
Small Workflows
2,500
500 inferences per workflow.
Medium Workflows
10,000
500 inferences per workflow.
Large Workflows
100,000
500 inferences per workflow.
Understanding Agentic Workflows
Agentic workflows involve AI agents autonomously performing
tasks, making decisions, and interacting with systems to complete complex processes.
Examples include customer service automation, sales and marketing, human resources, finance and accounting, supply chain management, and IT support services.
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Jevons Paradox and Increased Workflow Consumption
Jevons Paradox is an economic theory that suggests that as
technological improvements increase the efficiency of resource use, the overall consumption of that resource can increase rather than decrease.
In the context of AI and enterprise workflows, as the cost of processing inferences and tokens decreases, enterprises will naturally consume more AI-driven workflows. This is because the reduced costs make it feasible to apply AI to a broader range of tasks and processes, leading to increased efficiency and productivity. We estimate that one human can match up to about 2,500 AI Agent workflows a day, which has been factored into our estimates.
The Path to 1 Trillion Inferences a Day
Current Costs Using GPT-4o
$5.00
Cost per 1M tokens
500
Average tokens per inference
500,000,000,000,000
Total tokens for 1 trillion inferences
$2.5 billion
Total cost per day
$912.5 billion
Total annual cost
Future Costs Using Nvidia GB200
30x Decrease
Reduction in cost
$27 million
Projected one-time cost
$385,833
Projected monthly operational cost
$4.63 million
Total annual operational cost
$31.63 million
Total annual cost including one-time setup
Annual Savings
The annual savings of over $900 billion illustrate just how impractical the current costs are—no firm could afford or undertake the full 1 trillion inferences today. However, as shown, achieving this scale is feasible in as little as 18 months or by mid-2025 with advancements in AI hardware.
By adopting advanced hardware like the Nvidia GB200, enterprises can significantly reduce the costs of achieving 1 trillion inferences a day. This reduction not only makes AI deployment more feasible but also enables companies to reinvest savings into further innovation and growth.
$912.5 B
Annual cost using GPT-4o
$31.63 M
Annual cost using Nvidia GB200
$912.468 B
Annual savings
Enterprise Lift-Off with AI
Embracing 5IR allows companies to experience "Enterprise Lift-Off,"
similar to AI lift-off where artificial general intelligence (AGI) rapidly evolves into superintelligence.
By adopting the Kaizen philosophy of continuous improvement,
companies can aim for a 1% efficiency increase every month. This compounding effect can transform an enterprise into a "Super Enterprise," operating at unmatched levels of efficiency and innovation.
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The Competitive Edge
Early adopters of AI gain a significant competitive advantage. Continuous improvements create a gap that late adopters will struggle to close. Competitors delaying their AI journey even by a few months may find themselves perpetually behind, unable to catch up with Super Enterprises that fully embrace AI.
In conclusion, the Fifth Industrial Revolution is not just about integrating AI into business operations; it's about transforming the very fabric of the enterprise. By adopting a philosophy of continuous improvement and leveraging AI to drive efficiency and innovation, companies can achieve Enterprise Lift-Off, positioning themselves as leaders in their industries and leaving competitors in the dust.