Big Tech Meets Startup Ingenuity: A Tale of Generative AI
We’re in downtown Seattle. The heart of tech town. Pioneer Square Labs is hosting some 30 employees from Fortive, the manufacturing conglomerate. They’re on a mission to build applications using generative AI. But why are these big corporation folks taking a detour into the world of startups, you ask?
Well, it seems in this AI arms race, big companies are often left biting the dust of swift, agile startups. Fortive is trying to keep up, but not by imitating startup culture. They’re literally stepping into it. This isn’t some whimsical detour. This unique partnership with Pioneer Square Labs (PSL) was formed back in 2020, all with the aim of breathing new life into product development.
An AI Bootcamp Adventure
Now, these corporate folk recently swapped their 9-5 routine for a week-long sabbatical, transforming into a bootcamp of sorts. They were breaking bread (and maybe a sweat?) brainstorming and testing AI business concepts at PSL.
Six teams were formed, ideas were bounced around, pitches developed. All this to find a way to integrate AI into a business plan. For those of you keeping score, this is the kind of innovative spirit Fortive wants to infuse within its culture of “kaizen” or continuous improvement.
The Innovation Iceberg: What’s Underneath?
Now you might wonder, what are these AI experiments they’re cooking up? Well, I got a sneak peek into their demo videos and pitch ideas. Among the mix, we have an AI tool to help electricians navigate complicated, location-specific electrical codes. Another application aims to assist maintenance companies in automating managerial duties.
Whether or not these concepts graduate to become full-fledged startups, they offer a great deal of “strategic value” to Fortive, according to their SVP, Kirsten Paust. After all, understanding and leveraging AI is essential to modern business.
Past Successes and Future Prospects
Fortive and PSL aren’t rookies to this game. They’ve previously launched successful spinouts like TeamSense, an AI-powered platform that tracks COVID-19 symptoms, and Genba, a voice recognition startup for maintenance. Both these companies were later acquired by industrial entities.
Startups birthed from this partnership have a leg up in the market due to their access to Fortive’s data, customer base, and distribution network. This is a significant advantage in competing with companies developing their own AI products.
The Bigger Picture
Fortive’s partnership with PSL isn’t a solitary initiative. Corporations like Capital One, Kroger, Rover, and FIS are also dipping their toes into PSL’s waters, trying to come up with innovative ideas for potential spinouts and product innovations.
PSL itself is ramping up to seize generative AI opportunities, already working on multiple “co-pilot” apps for industries such as finance and healthcare.
Looks like the big tech boys are learning from the startup kids on the block. It’s a symbiotic relationship that’s both exhilarating and challenging in equal measures, but the potential for game-changing innovation is undeniable.
