When most people think of Artificial Intelligence today, they imagine ChatGPT, the helpful assistant who can answer questions, write poems, explain quantum physics, and even plan a trip.
But here’s the truth: ChatGPT is just the tip of the AI iceberg. Behind every AI chatbot, image generator, or recommendation engine lies a sprawling, interconnected system of technologies, industries, and companies quietly powering the AI revolution.
So, we’re launching a multi-part series to unpack it all. From the hidden value chain fueling your everyday AI tools to how you can actually use these tools in your personal finance journey. We’re covering it step by step.
In this first edition, we’ll explore the evolution of AI and break down its underlying value chain — where it all started, how it’s grown, and what really happens when you type a prompt into an AI assistant.
Let us start from the very beginning!
A Brief History of AI
Artificial Intelligence isn’t new. The concept dates back to the 1950s, when Alan Turing famously asked, “Can machines think?”. The early years were full of ambition but limited by the technology of the time; slow computers, scarce data, and basic algorithms. But over the decades, as data exploded, hardware advanced, and algorithms became smarter, AI quietly evolved.
Today, it’s no longer just a field of research, it’s a full-blown revolution that’s shaping the way we live, work, and interact with the world.
Here’s how it evolved and the types of AI we’ve built along the way:
Agentic AI: The Future
A new kind of AI is beginning to take shape, Agentic AI.
Unlike current generations of AI that simply respond to prompts, Agentic AI can plan, take actions, and make decisions on its own.
Imagine an AI that doesn’t just suggest an investment strategy — but actively tracks your financial goals, adjusts your portfolio, and executes decisions on your behalf.
It’s a powerful vision, but still in its early days. The foundations are being laid, and the possibilities are just starting to unfold.
One Prompt, Thousand Mechanics
So, what really happens behind the scenes when you type a simple prompt into ChatGPT, like ‘What’s a good investment strategy for a beginner?’
Let’s break it down step by step and uncover the layers of technology that turn your question into a meaningful answer.
The AI Value Chain
As seen from the table above, when you ask something like, ‘What’s a good investment strategy for a beginner?’, you’re not just chatting with an AI.
You’re tapping into a massive, invisible engine made up of semiconductors, cloud platforms, high-performance servers, data infrastructure, and advanced machine learning models. All working together in milliseconds to deliver that answer.
It’s this intricate value chain that explains why AI has accelerated so rapidly, and why companies powering this ecosystem have seen a surge in market value.
From chipmakers like NVIDIA to cloud giants like AWS and Microsoft Azure, the AI boom is fueling an entirely new industrial wave.
AI is no longer a research concept or a cool app on your phone. It’s becoming the next foundational technology, much like electricity or the internet once were, quietly transforming how we work, learn, and increasingly, how we manage money.
That’s what this series is here to explore: To decode the AI value chain, uncover where real value is being created, and show you how to engage with AI meaningfully in your life.
I hope you enjoyed this newsletter and if you did, feel free to share it with your friends and family.
Also, if you have any topics that you would like us to cover or any other feedback, do write to us at connect@incredmoney.com
Till the next time,
Vijay
CEO – InCred Money
