The other unspoken piece is how costly AI is to run, and how, in direct contrast to conventional SaaS products, greater growth leads to exponentially increasing, rather than decreasing, costs.
Which leaves us to ask:
What is the path forward if successful AI adoptions don’t have a profitable business model?
I enjoyed the intentionality with you described how to approach any new innovation. I am considering a 2 pronged approach for such companies, because the rush into the hype is what gives the last movers insights about what to do better. Would you agree?
The first mover advantage works best when it comes to data, certain back office functions as long as they are not critical to serving customers, etc. Trust and policies must be taken into account.
Great perspective, Juan. I absolutely patterns. Massive operating value for companies when it comes to the tech.
But I think the pace at which they think they need to be adopting, and the level of evangelical zeal they are trying to communicate, has much more to do with the media narrative and the quarterly demands of Wall Street. Yes/No?
Thank you John. Yes, those two elements influence this behavior for sure. Being part of the club and building a MOAT (Network effects, IP, etc) are drivers. The issue they are facing is trust, performance and policies. On the backend seems to be working best. Though scaling is still in its infancy
Great article Juan. AI is a great tool but cannot replace human empathy, which is a big part of what businesses are selling. How many times have you been stuck in automated phone systems, and can't get to speak to someone to solve your problem? Companies spent so much money to acquire customers yet put them in automation hell when they get them. AI is making us more efficient in so many ways, but if that is all you are giving your customers, why do they need you?
Great read, Juan! Building on your “last mover advantage” thesis - what if the real strategic opportunity isn’t just timing market entry, but designing for human preference rather than maximum automation? The autonomous car parallel is telling: 10 years ago we assumed full self-driving was the singular goal, but we’ve discovered there’s an optimal level of autonomy humans actually want to retain.
You’re right on the money Zain. This is part of the sequence process. Humans in the loop and measure customer trust and satisfaction. You then optimize your process/product for this. AI is not yet there for many use cases
Important insights here, Juan
The other unspoken piece is how costly AI is to run, and how, in direct contrast to conventional SaaS products, greater growth leads to exponentially increasing, rather than decreasing, costs.
Which leaves us to ask:
What is the path forward if successful AI adoptions don’t have a profitable business model?
I enjoyed the intentionality with you described how to approach any new innovation. I am considering a 2 pronged approach for such companies, because the rush into the hype is what gives the last movers insights about what to do better. Would you agree?
The first mover advantage works best when it comes to data, certain back office functions as long as they are not critical to serving customers, etc. Trust and policies must be taken into account.
Fantastic read. Thanks for sharing 🌞
Thanks Chris!
Great perspective, Juan. I absolutely patterns. Massive operating value for companies when it comes to the tech.
But I think the pace at which they think they need to be adopting, and the level of evangelical zeal they are trying to communicate, has much more to do with the media narrative and the quarterly demands of Wall Street. Yes/No?
Thank you John. Yes, those two elements influence this behavior for sure. Being part of the club and building a MOAT (Network effects, IP, etc) are drivers. The issue they are facing is trust, performance and policies. On the backend seems to be working best. Though scaling is still in its infancy
Great article Juan. AI is a great tool but cannot replace human empathy, which is a big part of what businesses are selling. How many times have you been stuck in automated phone systems, and can't get to speak to someone to solve your problem? Companies spent so much money to acquire customers yet put them in automation hell when they get them. AI is making us more efficient in so many ways, but if that is all you are giving your customers, why do they need you?
Thanks Michael. Omg, and the worst ones are the ones that enjoy their monopoly status, like some utility companies…they just don’t care.
Great read, Juan! Building on your “last mover advantage” thesis - what if the real strategic opportunity isn’t just timing market entry, but designing for human preference rather than maximum automation? The autonomous car parallel is telling: 10 years ago we assumed full self-driving was the singular goal, but we’ve discovered there’s an optimal level of autonomy humans actually want to retain.
You’re right on the money Zain. This is part of the sequence process. Humans in the loop and measure customer trust and satisfaction. You then optimize your process/product for this. AI is not yet there for many use cases