AI is set to revolutionize the way we interact with technology, but for many tech companies, this means a fundamental shift in how they make money.
In theory, AI-powered devices should be able to learn our preferences and offer us services without needing to visit apps or websites. This could mean booking travel, ordering food, or restocking paper towels all from within an AI agent's interface. However, the reality is that this technology still has significant limitations, particularly when it comes to reliability.
One of the biggest challenges facing tech companies is how they will make money in a world where users are no longer required to visit apps and websites. Historically, many consumer tech companies have relied on tapping into app users' behavior to sell them services - think targeted ads or upselling other products. However, with AI-powered devices on the horizon, this model could be turned on its head.
Companies like Uber and DoorDash are already feeling the pressure of this shift. These businesses have traditionally relied on keeping consumers in their apps, where they can serve ads, upsell services, and build loyalty to keep users coming back. However, with AI-powered devices promising to revolutionize customer service, these companies risk losing control over how users interact with them.
To mitigate this risk, some tech companies are cautiously optimistic about the potential for novel app experiences that are intermediated by AI tools. For example, companies like DoorDash and Instacart have signed up to build early forms of AI apps within chatbots, while Ticketmaster, Uber, and OpenTable debuted as early features for Alexa+.
However, there are still significant challenges ahead. According to Anjney Midha, an investor and board member at Sesame - the AI device startup co-founded by former Oculus leaders including Brendan Iribe - if companies don't have "deep control over the supply of their product", it will be very hard for them to operate in a world where they have to reach users through an AI agent.
The business model for AI is still largely untested. Will consumers be willing to pay for services provided by AI-powered devices? Or will companies need to rely on advertising revenue instead? The answer to this question remains unclear, and it's only time that will tell.
In the meantime, tech giants like Amazon, Meta, and OpenAI are racing to develop "operating systems" for AI-powered devices. These operating systems promise to revolutionize customer service and make it easier for users to get what they need without having to visit apps or websites. However, with significant challenges ahead, it's unclear how these companies will ultimately make money in this new landscape.
One thing is certain - the future of tech is going to be shaped by AI-powered devices. Whether you love or fear these technologies, one thing is clear: the world of technology is about to change forever.
In theory, AI-powered devices should be able to learn our preferences and offer us services without needing to visit apps or websites. This could mean booking travel, ordering food, or restocking paper towels all from within an AI agent's interface. However, the reality is that this technology still has significant limitations, particularly when it comes to reliability.
One of the biggest challenges facing tech companies is how they will make money in a world where users are no longer required to visit apps and websites. Historically, many consumer tech companies have relied on tapping into app users' behavior to sell them services - think targeted ads or upselling other products. However, with AI-powered devices on the horizon, this model could be turned on its head.
Companies like Uber and DoorDash are already feeling the pressure of this shift. These businesses have traditionally relied on keeping consumers in their apps, where they can serve ads, upsell services, and build loyalty to keep users coming back. However, with AI-powered devices promising to revolutionize customer service, these companies risk losing control over how users interact with them.
To mitigate this risk, some tech companies are cautiously optimistic about the potential for novel app experiences that are intermediated by AI tools. For example, companies like DoorDash and Instacart have signed up to build early forms of AI apps within chatbots, while Ticketmaster, Uber, and OpenTable debuted as early features for Alexa+.
However, there are still significant challenges ahead. According to Anjney Midha, an investor and board member at Sesame - the AI device startup co-founded by former Oculus leaders including Brendan Iribe - if companies don't have "deep control over the supply of their product", it will be very hard for them to operate in a world where they have to reach users through an AI agent.
The business model for AI is still largely untested. Will consumers be willing to pay for services provided by AI-powered devices? Or will companies need to rely on advertising revenue instead? The answer to this question remains unclear, and it's only time that will tell.
In the meantime, tech giants like Amazon, Meta, and OpenAI are racing to develop "operating systems" for AI-powered devices. These operating systems promise to revolutionize customer service and make it easier for users to get what they need without having to visit apps or websites. However, with significant challenges ahead, it's unclear how these companies will ultimately make money in this new landscape.
One thing is certain - the future of tech is going to be shaped by AI-powered devices. Whether you love or fear these technologies, one thing is clear: the world of technology is about to change forever.