Why AI is mostly not monetizable
It takes Intelligence to leverage Intelligence
Why AI is mostly not monetizable:
1. It takes Intelligence to leverage Intelligence.
Most people do not have the skills to use the tools to do productive work. And they won’t pay for something they can’t use.
2. Commoditization.
Models become cheaper and cheaper and AI power adequate for most users becomes free to use. It’s a loss leader.
3. Value on the edge.
On the edge, there is monetizable opportunity for corporate, edu, science, org, mil, gov, natsec. But that’s only for the most cutting edge systems, which must be continually iterated and updated.
The AI infra is being built out to be monetizable for the world, when what’s needed is infra for more niche users. Sure, SOME consumers, like me, would pay for a higher level of service. But that might be something like 5-7% of consumers. Most AI will be fully on edge devices to serve most consumers within 2 years, long before the proposed buildout is completed. So most of what they say they are going to build is already obsolete before complete.
AI is awesome. It’s going to become even more awesome, far more than most can even comprehend. But most people can’t use awesome. And they don’t even want to. They want cat pictures and funny jokes and porn and stock tips and recipes. The monetizable market for Intelligence is constrained by the nature of the consumer market itself.