Google, a tech titan, is gearing up to “define the agentic AI era.” That’s the bold pronouncement from Alphabet Inc. (GOOGL) as its massive I/O conference looms. The term “agentic AI” itself signals a shift: systems making their own decisions, adapting on the fly. Think the brains behind a truly smart assistant, or a robot with real initiative.
Previews hint at monumental upgrades. Project Astra. More capable Gemini agents. AI woven into Search and Chrome. Developer tools for these advanced workflows. The market, predictably, is buzzing. Autonomous AI systems? It's the next big thing, after all, following the generative AI craze.
But a nagging question persists. Does history repeat, even with groundbreaking tech? Investors chasing the companies *building* AI might just be making the same error as those during the dot-com boom. They confuse the shiny new technology itself with the businesses that truly harvest its profits.
Most fixate on the big names: Google, Anthropic, OpenAI, Microsoft Corp. (MSFT). The conference halls. The headline-grabbing announcements. Understandable. Yet, the most compelling agentic AI stories? They’re unfolding elsewhere. Quietly. In the unglamorous operations of seemingly ordinary companies.
The Unsung Heroes: Enter the 'Appliers'
History has a name for these players. We call them the “Appliers.” And if the past is any guide, many will thrive. They don't generate the same spectacle as the “Builders.” They often fly under the radar. But their success can be profound. Often surprising.
History suggests the greatest returns of the AI era won't go to the companies building the technology, but to the often-overlooked 'Appliers' who figure out how to wield it for profit.
Consider the dawn of commercial radio in the 1920s. A sensation. Over 600 companies rushed to manufacture radios. By 1934? Just 18 remained. The survivors, the true thrivers, weren't the radio-builders. They were the Appliers: the advertisers who tapped into millions of homes. The retailers who forged national brands. The entertainment companies that transformed airwaves into profit centers.
Procter & Gamble Co. (PG) literally invented the “soap opera” to sell soap. To housewives listening intently. The technology's true value? What people chose to *do* with it. Nothing more. Nothing less.
Beyond the Hype Cycle
So, while Google confidently states it will define this agentic AI era, I hold a different view. It's the Appliers who will etch its true definition. That's not to say every company simply *using* AI gains an advantage. Not at all. We’ve moved past mere adoption. Now, execution is everything. It’s about leveraging these potent tools for strategic gains, not just deploying them.
In this dynamic landscape, a new breed of investment opportunities emerges. Market veterans, those who spotted anomalies like Nvidia long before the masses, often emphasize looking beyond the immediate hype. Some suggest a disconnect, for instance, in sectors like pharmaceuticals, where AI integration could quietly drive immense efficiency and profit, drawing attention away from the flashier tech firms.
The era of simply buying 'anything AI' and turning a profit? That’s over. Sophisticated analytical systems, scanning billions of data points daily, are now crucial. They identify not just companies adopting AI, but those truly made stronger by it. Those Appliers poised to redefine their industries, and potentially, investor portfolios.
Agentic AI isn't just a technological leap; it’s an economic reordering. It offers a rare chance. You don't have to wait for the hyperscalers to dictate the future. You can play a part in defining it yourself, by identifying the quiet innovators. The Appliers.
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