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PayPal Executives Chart AI's Next Frontier: From Data Crunching to Smart Thinking

The Intelligence Revolution: How AI Is Redefining Business

Remember when computers simply stored information? Those days are ending fast. At Fortune's recent Brainstorm AI conference, PayPal's Senior VP Prakhar Mehrotra declared we've officially moved beyond the "information age" into what he calls the "intelligence era."

From Filing Cabinets to Thinking Machines

The shift marks a fundamental change in how businesses operate. Where companies once focused on storing and retrieving data, Mehrotra explains that AI now enables spontaneous data generation - essentially allowing systems to "think" rather than just remember.

"We're seeing industries move away from passive data models," Mehrotra told attendees. "The endgame? Achieving true autonomy in business operations."

The Rocky Road to AI Adoption

Despite massive investments, success remains elusive for many. A sobering MIT study reveals 95% of corporate AI projects fail to quickly boost revenues. Mehrotra compares the journey to child development: "You crawl before you walk, and walk before you run. That truth hasn't changed in ten years."

Nvidia's Marc Hamilton offered a glimpse into future workplaces during his presentation. Companies will increasingly rely on "AI factories" - specialized hubs either onsite or cloud-based where machines generate rather than retrieve information.

Tokens: The New Building Blocks

The executives identified an unexpected key to success: tokens. These basic components help text-based AI understand and process information, serving dual roles as training material and generated content.

"When AI creates a presentation or writes code," Hamilton explained, "it's not pulling from databases but generating fresh material based on its model."

Mehrotra put it bluntly: "Every company must now think about their data in terms of tokens if they want to extract real intelligence."

Key Points:

  • Paradigm Shift: Businesses transitioning from information storage to intelligent generation
  • Implementation Challenges: Most corporate AI projects struggle with financial returns
  • New Currency: Tokens emerging as fundamental units for effective AI deployment
  • Future Infrastructure: Specialized "AI factories" expected to dominate workplace integration

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