The Philadelphia & Reading Railroad (P&R), once a leading transportation company, went bankrupt in the 1890s, contributing to the Panic of 1893 when over 70 railroads failed. Despite this, the infrastructure laid by the P&R enabled businesses like The Campbell’s Company to thrive, becoming a $10 billion industry by leveraging the existing rail networks for efficient distribution.
As current technology cycles introduce artificial intelligence (AI), history suggests a similar pattern may emerge. Major tech companies such as Alphabet, Amazon, and Microsoft are investing heavily in building AI infrastructure; however, the true financial gains might be realized by those who apply this technology, rather than those who build it. PayPal, for instance, has seen its revenue per employee surge over 50% since 2022 by integrating AI into its operations, illustrating the potential for AI applicators to capitalize on existing systems without incurring substantial construction debt.
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