The digital landscape is witnessing a pivotal shift reminiscent of past technological booms, particularly in AI. History shows that the biggest winners often arise not from the developers of new technology, but from companies that effectively utilize it. Companies like PayPal Holdings Inc. (PYPL) are leveraging AI to drive efficiency, with their revenue per employee surging more than 50% since 2022, positioning them as “Appliers” in the evolving AI ecosystem.
Recent investments in AI infrastructure by tech giants such as Alphabet, Amazon, Meta Platforms Inc., and Microsoft Corp. highlight the emerging divide between “builders” and “appliers.” The latter group, employing AI to enhance existing business operations, is likely to see greater long-term financial gains. As these established companies innovate and adapt to new AI capabilities, they are poised to capture significant market share from those that are merely developing the technology.
This trend emphasizes the historical pattern where the second movers—who capitalize on existing technology rather than take on the risks of building it—typically secure the largest profits. As the industry continues to evolve, identifying and investing in these Appliers could be key to capitalizing on the AI boom.
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