AI is evolving in three distinct phases. Understanding which phase you’re in — and which phase is coming — determines whether your AI strategy succeeds or wastes resources.

Phase 1: Tools (2020–2024)

AI as a tool that does what you tell it. Autocomplete, image generation, text summarization. Human initiates, AI executes. The human is the brains. The AI is the muscle.

Most companies are still here. And that’s fine — there’s enormous value in Phase 1. But it’s not where the world is going.

Phase 2: Agents (2024–2027)

AI that can plan, decide, and act across multiple steps. You give it a goal, not a task. It figures out the steps, executes them, handles errors, and delivers results. MCP, tool use, multi-agent coordination — this is the current frontier.

We’re in Phase 2 right now. Most companies are still building for Phase 1.

Phase 3: Teammates (2027+)

AI as a genuine collaborator with persistent memory, context, and judgment. It doesn’t just do tasks or run workflows — it understands your business, anticipates needs, and proactively contributes. Like a brilliant colleague who never forgets and never sleeps.

The strategic question: Are you building infrastructure for Phase 1 (tools), Phase 2 (agents), or Phase 3 (teammates)? The answer determines your competitive position in 24 months.

Phase 1 infrastructure won’t support Phase 2 agents. And Phase 2 infrastructure probably won’t support Phase 3 teammates. Build for where the world is going, not where it’s been.

Choose to be wise.