AI-powered Data-First applications, which we have written about here and here, aren’t just data-driven; they’re “data-driving” too. Engineered to achieve broad deployment, they consume large original datasets, but also generate significant data exhaust of their own. These “synthetic” datasets are then used to drive additional algorithms delivering value-added functionality, which in turn generate even more refined data.
The result is a virtual breeder reactor of business-process optimization shown in the chart, which gives companies using Data-First applications a significant advantage over rivals using legacy ones. The startups offering these next-generation applications benefit too, as their systems get smarter with each iteration of this "virtuous data cycle". It is their proprietary synthetic datasets that give them such a powerful competitive edge.