Ai Pioneer Cohere Secures Historic 500M Funding Round Valued At 68B
Cohere, a Toronto-based enterprise genAI startup, has raised $500 million at a valuation of $6.8 …
25. August 2025
Ai Shifts From Breakthrough Science To Strategic Game-Changer
Artificial intelligence (AI) has been making headlines for years, with its potential to revolutionize industries and transform the way we live and work. As AI continues to advance and become more integrated into our daily lives, it’s essential to understand the concept of innovation versus invention.
Innovation and invention are two distinct concepts that often get conflated. Invention refers to the creation of new capabilities or products, whereas innovation involves turning those capabilities into tangible value. According to Joseph Schumpeter, a pioneer in entrepreneurship economics, “Innovation is the market introduction of a technical or organizational novelty, not just its invention.”
Schumpeter’s concept of creative destruction highlights the importance of innovation in driving growth and progress in a capitalist economy. Creative destruction refers to the process by which new innovations destroy long-established practices and open up new opportunities for growth.
AI is undoubtedly an incredible invention that has enabled us to perform tasks that were previously impossible. From language translation to image recognition, AI has demonstrated its capabilities and potential to transform industries.
However, just like other inventions, AI requires a specific context in which to become innovative. As Steve Wozniak, co-founder of Apple, noted, “The internal combustion engine was an invention; the Model T assembly line was the innovation.” This highlights the importance of taking an invented technology and turning it into a valuable product or service.
Google CEO Sundar Pichai has ranked AI alongside fire and electricity, suggesting that it has immense potential for innovation. However, just like other innovations, AI requires careful consideration and application to create tangible value.
A recent example of turning AI inventions into innovative services is the work of Netstock, a supply chain planning software company. Netstock’s AI-powered tool, the Opportunity Engine, helps customers forecast demand, avoid stock-outs, and reduce excess inventory. This solution not only saves time but also improves outcomes for customers.
The Opportunity Engine is an excellent example of how AI can be applied to create innovative solutions that transform industries. By leveraging its expertise in data analysis and machine learning, Netstock has developed a conversational AI experience that makes recommendations to users in natural language.
Netstock’s success story highlights the importance of moving from invention to innovation. The company’s AI-powered tool has not only changed how customers work with their software but also delivered significant value through increased revenue growth.
The Opportunity Engine is included in the standard offering, making it easy for customers to adopt and benefit from the technology. Netstock has received top recognition for this tool from an independent review, demonstrating its impact on the market.
Netstock’s experience illustrates that AI inventions can be turned into innovative services by applying them to specific business problems. This process requires careful consideration of how to apply AI capabilities to create tangible value.
Despite the potential of AI, it remains a relatively new and untested asset class in private equity. Many technology bankers have expressed skepticism about investing in AI-based companies, citing concerns that the technology is not yet proven or scalable.
However, as Netstock’s story demonstrates, AI has immense potential for innovation and growth. By applying its capabilities to real-world business problems, AI can create significant value and transform industries.
The entrepreneurial moment lies ahead, offering each of us the opportunity to translate our AI inventions into market outcomes that transform industries and drive growth. As Schumpeter noted, “The function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention.”
As we look to the future, it’s clear that AI will continue to play a significant role in shaping industries and transforming the way we live and work. The journey from invention to innovation is ongoing, with new breakthroughs and applications emerging every day.
For those who have already begun this journey, congratulations – you are an entrepreneur. And for those who are just starting out, we encourage you to put AI to work on some activity that makes a difference to your revenue or cash flow. The future of innovation is waiting for you.