3 ways AI will disrupt business models.

Scott Belsky’s (CPO @Adobe) latest newsletter talks about different ways AI will disrupt business models, creative outlets, marketing patterns and more. Here’s what Scott thinks about the business model disruption:

1) Better AI = Bad Business.

AI will enable real-time optimization and decision-making, which could incentivize some companies to constrain AI efficiency to protect their business models.

This means companies may limit how effective their AI optimization becomes if it threatens their bottom line. For example, Tinder may not want matches to be too perfect, as that would lead to user churn.

2) Time’s over for billing by the hour

Some industries built on time-based billing will need to evolve to value-based pricing. As AI speeds up workflows, billing simply by the hour will not capture the full value delivered. Instead, compensation should be based on differentiating values like experience, skills, and proprietary data that professionals leverage, not strictly time spent. For eg: Laweres, consultants and freelancers.

3) Anti-Marketing AI

Additionally, AI-powered recommendation engines will reduce bias and subjectivity in purchasing decisions. Instead of brand sway or personal relationships guiding decisions, AI will objectively surface the best and most cost-effective options based on individual preferences and reviews. This threatens companies that have relied more on marketing than merit.

You should check out Scott’s full post (paid), there’s much more in there.