While talk about artificial intelligence has polarised conversations, it is undeniable that the technology is adding people to its fan club.
In a significant achievement, artificial intelligence (AI) chatbot ChatGPT became the stand-in chief executive officer (CEO) of AIsthetic Apparel, a Portuguese garments start-up. And it reportedly managed to put the company on the path to profitability within a week.
The start-up's founder, João F. Santos, posted on LinkedIn how he appointed ChatGPT as the CEO while he took the toned down role of an assistant. Every day, he dedicated an hour to execute the tasks that the chatbot assigned to him.
Rather than offering services, the company focused on selling t-shirts featuring AI-generated designs by Midjourney, with the AI formulating a 10-point business plan, launching an online store, and partnering with Printful for printing the designs.
ChatGPT also created the company's name and logo, blending "AI" with "aesthetic."
To secure funding, ChatGPT sought out investors and raised $2,500 in exchange for a 25 per cent stake in the company, starting with an initial investment of $1,000. The t-shirts, priced at €35, generated over €10,000 in revenue within five days, resulting in a profit of €7,000. If this sales trend continues, the AI predicts an annual profit of €40,000 and a company valuation of €4 million.
The founder of AIsthetic Apparel consulted their own experience as an early-stage investor and sought funding from angel investors. This strategy resulted in a $2,500 investment for a 25 per cent stake in the company. With three close friends supporting them, offering advice, and proposing questions for the AI CEO, the start-up was well-positioned for success.
Further, the team executed step 8 of ChatGPT's business plan, implementing a marketing strategy. The founder announced the company's plans on LinkedIn, generating significant interest in the venture. Following this announcement, dozens of messages from potential investors flooded in, expressing interest in joining the company's cap table.
Consulting ChatGPT, the AI CEO set the pre-money valuation at an impressive €4 million, reflecting a bold step forward into the world of AI-driven business management. However, temporary restrictions on ChatGPT in Italy created a hurdle for the start-up.
The AI was unable to access its server located in the United States, causing disruptions in the company's operations. Despite this, the start-up continued to function and the founder and his team ensured that they followed the AI's directives as closely as possible, leading to a profitable venture.