How AI is Reshaping Industries like Steel Transformed the 1800s
Artificial intelligence (AI) is reshaping industries and economies, drawing comparisons to the Industrial Revolution that transformed society in the 1800s. Much like the rise of steel during that era, AI is positioned to drive advancements, redefine business operations, and reshape industries. According to Qualtrics CEO Zig Serafin, AI’s development resembles the rise of steel—initially overlooked but ultimately transformative.
At Fortune’s Global Forum in New York City, Serafin shared his perspective, quoting an old saying: “We often end up overestimating what happens in the short run and significantly underestimating what happens in the long run.” The same could be said of steel in the 1800s, which was first limited to railroads before transforming construction, manufacturing, and urban infrastructure. Serafin believes AI is in a similar phase; despite rapid advancements, its full impact remains to be seen—although, as he notes, the timeline may be shorter.
Learning from the past
To appreciate AI’s potential, we can look back at steel’s journey in the 19th century. Initially used in railroads, steel was a revolutionary material, but its full utility took time to recognize. With its strength, durability, and adaptability, steel became essential in constructing buildings, bridges, and many other applications.
During the early Industrial Revolution, steel’s applications were limited. However, as the technology matured, steel’s uses expanded to construction, transportation, and manufacturing. Today’s skyscrapers, infrastructure, and high-speed rail depend on steel’s versatility. The innovation around steel gradually grew, sparking new industries and transforming existing ones.
Similarly, AI is evolving from a specialized tool—mainly used in data analytics, automation, and customer service—to a technology with the potential to redefine entire industries. Just as steel expanded beyond railroads, AI is progressing beyond customer support chatbots and targeted advertisements to transform processes like supply chain management and personalized medicine.
The main difference, as Serafin notes, is speed. While steel took decades to reshape industries, AI is advancing far more quickly. We might see major shifts in AI within three years, compressing the traditional pace of change and bringing us closer to a world where AI is integrated into business and daily life.
The rapid pace of AI adoption and industry transformation
The speed of AI adoption is remarkable, with industries worldwide quickly integrating AI-driven tools to stay competitive. Unlike past technological shifts, AI is on a compressed adoption curve. For instance, while steel took decades to move from railroads to construction, AI is already making significant strides across healthcare, manufacturing, and finance.
Serafin notes that AI’s impact timeline has accelerated. In healthcare, AI assists with diagnostics and personalizes treatments, illustrating its potential to improve efficiency and outcomes rapidly. In manufacturing, AI-powered automation streamlines production and quality control, helping firms stay agile.
Customer service has also been revolutionized by AI, which now offers real-time support, solves issues faster, and predicts consumer needs. This shift redefines the customer experience, setting new standards for responsiveness.
The role of government in regulating AI and encouraging innovation
As AI’s capabilities expand, regulation becomes increasingly relevant. Governments worldwide are balancing the need for safety with the need to encourage innovation. Serafin warns that over-regulation could stifle AI’s growth before it reaches its potential. However, a framework is necessary to ensure responsible and ethical AI use.
Serafin encourages governments to create frameworks that allow for innovation without overly restrictive constraints. This ‘pro-innovation regulation’ approach aims to protect individual rights and build public trust while supporting growth. For example, the UK’s recent strategy for AI regulation emphasizes guidelines that prioritize innovation while safeguarding citizens’ privacy.
AI also has a role to play within government. As Serafin noted, AI can be a tool for governments to understand their citizens better and deliver more personalized services. Just as companies use AI to connect with customers, governments can use AI to enhance public engagement and transparency, fostering increased public trust.
Building an ecosystem of AI-powered growth and trust
Beyond adoption, businesses and governments are working to create ecosystems that foster AI-driven growth and trust. An effective AI ecosystem enables companies to innovate continuously, improve products, and develop a deeper understanding of customers. This ecosystem also presents opportunities for personalized experiences at a new scale. With AI, companies can tailor products and services to individual preferences, making customers feel valued.
AI’s potential to build trust extends beyond the private sector. Governments, too, can use AI to bring citizens closer, providing transparency, better access to services, and a greater sense of agency. With AI-driven insights, governments can better anticipate public needs and adapt services. This AI ecosystem could ultimately reshape relationships between institutions and individuals, fostering shared growth.
Looking forward to an AI-enhanced future
As we look to an AI-enhanced future, it’s clear this technology has the potential to redefine industries, much like steel did in the 19th century. The comparison between AI and steel illustrates the power of foundational innovations—and the need to recognize and adapt to their evolving uses. While AI’s journey is only beginning, its impact is already visible across sectors, reshaping processes and expectations.
In the years ahead, balancing regulation and innovation will be crucial to ensure AI’s positive impact. Governments and companies must work together to create frameworks that encourage responsible growth, minimize risks, and build trust. As Serafin highlighted, a pro-innovation approach to regulation could be key to unlocking AI’s full
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