Andreessen Horowitz March 30, 2023
By Zeya Yang and Kristina Shen

We’ve watched large language models (LLMs) become mainstream over the past few years and have studied the implementations in the context of B2B applications. Despite some enormous technological advances and the presence of LLMs in the general zeitgeist, we believe we’re still only in the first wave of generative AI applications for B2B use cases. As companies nail down use cases and seek to build moats around their products, we expect a shift in approach and objectives from the current “Wave 1” to a more focused “Wave 2.”

Here’s what we mean: To date, generative AI applications have overwhelmingly focused on the divergence of information. That is, they create new content based on a set of instructions. In Wave 2,...

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