Is AI Profitable?
Very interesting opinion on AI ‘wrapper’ apps, by extension this also applies to the underlying AI company business models, losing money is not a sustainable business practise and most use cases for AI are not job replacing, nor are they money making ever.
Solving boring business problems is where there is a real chance to make money
My opinion: Large Language Models are not ready and they have to be profitable to be sustainable, and they won’t be ready, until the problem of being “confidently incorrect” is fixed.
Specific small language models based around specific use cases – solving boring business problems like building a chat bot to answer questions about a product or service etc is where there is a solid use case for Generative AI at the moment.
What about some other potential use cases for AI:
Image generation – A curiosity that most will not pay for, or may pay once.
Video generation – As above, except even more curiously expensive on compute
Code generation – There are already a plethora of news stories about “vibe coding”, I don’t need to go there – many AI Wrapper apps have more than a smidge of Vibe code included.
Is AI Profitable? Summary
Don’t buy into hype cycles, AI is the tech industries latest way to bring investment dollars into large corporates, because the transformative and potentially money saving/making use cases for AI are the boring ones, the ones that won’t fuel a “gold rush”.
