The Price of AI, Profits

A lot of companies want to use AI to run business functions, but that may put them at competitive risks.
 
In speaking with those who have already used AI and see reviews from those that have already used ChatGPT and Microsoft to have it write code, they did show a marked improvement in speed. However, the cookie cutter code that these tools produced also made it easier for competitors to replicate the same functionality in days.
 
One guy who said they created a new tool that was 95% written by AI said, in a matter of weeks, they had 10 competitors with pretty much the same thing, all written by AI. It quickly became a race to the bottom where everyone was lowering their prices. 
 
He said that his churn increased as customers found these competitors lower in price. They also were buying up ad space so when people searched his domain, those competitors were seen first. He realized, if his code base was written by AI, his competitors could just replicate his work in days. Now he is back to coding everything in house with developers.
 
Yes, the expense is more, the time to market is longer but the ability to remain competitive due to personalized coding allows him to have a longer competitive advantage, allowing him to make a profit where the AI approach pretty much mean he was just making pennies.
 
When your company says they want to use AI, are they throwing away good profit margins for speed? It’s a question that needs to be asked.


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