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Gen Z and the End of Predictable Progress
Gen Z and the End of Predictable Progress
Gen Z faces a double disruption: AI-driven technological change and institutional instability Three distinct Gen Z cohorts have emerged, each with different relationships to digital reality A version of the barbell strategy is splitting career paths between "safety seekers" and "digital gamblers" Our fiscal reality is quite stark right now, and that is shaping how young people see opportunities
When I talk to young people from New York or Louisiana or Tennessee or California or DC or Indiana or Massachusetts about their futures, they're not just worried about finding jobs, they're worried about whether or not the whole concept of a "career" as we know it will exist in five years.
When a main path to financial security comes through the algorithmic gods rather than institutional advancement (like when a single viral TikTok can generate more income than a year of professional work) it fundamentally changes how people view everything from education to social structures to political systems that they’re apart of.
Gen Z 1.0: The Bridge Generation: This group watched the digital transformation happen in real-time, experiencing both the analog and internet worlds during formative years. They might view technology as a tool rather than an environment. They're young enough to navigate digital spaces fluently but old enough to remember alternatives. They (myself included) entered the workforce during Covid and might have severe workplace interaction gaps because they missed out on formative time during their early years. Gen Z 1.5: The Covid Cohort: This group hit major life milestones during a global pandemic. They entered college under Trump but graduated under Biden. This group has a particularly complex relationship with institutions. They watched traditional systems bend and break in real-time during Covid, while simultaneously seeing how digital infrastructure kept society functioning. Gen Z 2.0: The Digital Natives: This is the first group that will be graduate into the new digital economy. This group has never known a world without smartphones. To them, social media could be another layer of reality. Their understanding of economic opportunity is completely different from their older peers.
Gen Z 2.0 doesn't just use digital tools differently, they understand reality through a digital-first lens. Their identity formation happens through and with technology.
Technology enables new forms of value exchange, which creates new economic possibilities so people build identities around these possibilities and these identities drive development of new technologies and the cycle continues.
different generations don’t just use different tools, they operate in different economic realities and form identity through fundamentally different processes. Technology is accelerating differentiation. Economic paths are becoming more extreme. Identity formation is becoming more fluid.
I wrote a very long piece about why Trump won that focused on uncertainty, structural affordability, and fear - and that’s what the younger Gen Z’s are facing. Add AI into this mix, and the rocky path gets rockier. Traditional professional paths that once promised stability and maybe the ability to buy a house one day might not even exist in two years. Couple this with increased zero sum thinking, a lack of trust in institutions and subsequent institutional dismantling, and the whole attention economy thing, and you’ve got a group of young people who are going to be trying to find their footing in a whole new world. Of course you vote for the person promising to dismantle it and save you.
·kyla.substack.com·
Gen Z and the End of Predictable Progress
DeepSeek isn't a victory for the AI sceptics
DeepSeek isn't a victory for the AI sceptics
we now know that as the price of computing equipment fell, new use cases emerged to fill the gap – which is why today my lightbulbs have semiconductors inside them, and I occasionally have to install firmware updates my doorbell.
surely the compute freed up by more efficient models will be used to train models even harder, and apply even more “brain power” to coming up with responses? Even if DeepSeek is dramatically more efficient, the logical thing to do will be to use the excess capacity to ensure the answers are even smarter.
ure, if DeepSeek heralds a new era of much leaner LLMs, it’s not great news in the short term if you’re a shareholder in Nvidia, Microsoft, Meta or Google.6 But if DeepSeek is the enormous breakthrough it appears, it just became even cheaper to train and use the most sophisticated models humans have so far built, by one or more orders of magnitude. Which is amazing news for big tech, because it means that AI usage is going to be even more ubiquitous.
·takes.jamesomalley.co.uk·
DeepSeek isn't a victory for the AI sceptics
Your "Per-Seat" Margin is My Opportunity
Your "Per-Seat" Margin is My Opportunity

Traditional software is sold on a per seat subscription. More humans, more money. We are headed to a future where AI agents will replace the work humans do. But you can’t charge agents a per seat cost. So we’re headed to a world where software will be sold on a consumption model (think tasks) and then on an outcome model (think job completed) Incumbents will be forced to adapt but it’s classic innovators dilemma. How do you suddenly give up all that subscription revenue? This gives an opportunity for startups to win.

Per-seat pricing only works when your users are human. But when agents become the primary users of software, that model collapses.
Executives aren't evaluating software against software anymore. They're comparing the combined costs of software licenses plus labor against pure outcome-based solutions. Think customer support (per resolved ticket vs. per agent + seat), marketing (per campaign vs. headcount), sales (per qualified lead vs. rep). That's your pricing umbrella—the upper limit enterprises will pay before switching entirely to AI.
enterprises are used to deterministic outcomes and fixed annual costs. Usage-based pricing makes budgeting harder. But individual leaders seeing 10x efficiency gains won't wait for procurement to catch up. Savvy managers will find ways around traditional buying processes.
This feels like a generational reset of how businesses operate. Zero upfront costs, pay only for outcomes—that's not just a pricing model. That's the future of business.
The winning strategy in my books? Give the platform away for free. Let your agents read and write to existing systems through unstructured data—emails, calls, documents. Once you handle enough workflows, you become the new system of record.
·writing.nikunjk.com·
Your "Per-Seat" Margin is My Opportunity
In the past three days, I've reviewed over 100 essays from the 2024-2025 college admissions cycle. Here's how I could tell which ones were written by ChatGPT : r/ApplyingToCollege
In the past three days, I've reviewed over 100 essays from the 2024-2025 college admissions cycle. Here's how I could tell which ones were written by ChatGPT : r/ApplyingToCollege

An experienced college essay reviewer identifies seven distinct patterns that reveal ChatGPT's writing "fingerprint" in admission essays, demonstrating how AI-generated content, despite being well-written, often lacks originality and follows predictable patterns that make it detectable to experienced readers.

Seven key indicators of ChatGPT-written essays:

  1. Specific vocabulary choices (e.g., "delve," "tapestry")
  2. Limited types of extended metaphors (weaving, cooking, painting, dance, classical music)
  3. Distinctive punctuation patterns (em dashes, mixed apostrophe styles)
  4. Frequent use of tricolons (three-part phrases), especially ascending ones
  5. Common phrase pattern: "I learned that the true meaning of X is not only Y, it's also Z"
  6. Predictable future-looking conclusions: "As I progress... I will carry..."
  7. Multiple ending syndrome (similar to Lord of the Rings movies)
·reddit.com·
In the past three days, I've reviewed over 100 essays from the 2024-2025 college admissions cycle. Here's how I could tell which ones were written by ChatGPT : r/ApplyingToCollege
Dario Amodei — Machines of Loving Grace
Dario Amodei — Machines of Loving Grace
I think that most people are underestimating just how radical the upside of AI could be, just as I think most people are underestimating how bad the risks could be.
the effects of powerful AI are likely to be even more unpredictable than past technological changes, so all of this is unavoidably going to consist of guesses. But I am aiming for at least educated and useful guesses, which capture the flavor of what will happen even if most details end up being wrong. I’m including lots of details mainly because I think a concrete vision does more to advance discussion than a highly hedged and abstract one.
I am often turned off by the way many AI risk public figures (not to mention AI company leaders) talk about the post-AGI world, as if it’s their mission to single-handedly bring it about like a prophet leading their people to salvation. I think it’s dangerous to view companies as unilaterally shaping the world, and dangerous to view practical technological goals in essentially religious terms.
AI companies talking about all the amazing benefits of AI can come off like propagandists, or as if they’re attempting to distract from downsides.
the small community of people who do discuss radical AI futures often does so in an excessively “sci-fi” tone (featuring e.g. uploaded minds, space exploration, or general cyberpunk vibes). I think this causes people to take the claims less seriously, and to imbue them with a sort of unreality. To be clear, the issue isn’t whether the technologies described are possible or likely (the main essay discusses this in granular detail)—it’s more that the “vibe” connotatively smuggles in a bunch of cultural baggage and unstated assumptions about what kind of future is desirable, how various societal issues will play out, etc. The result often ends up reading like a fantasy for a narrow subculture, while being off-putting to most people.
Yet despite all of the concerns above, I really do think it’s important to discuss what a good world with powerful AI could look like, while doing our best to avoid the above pitfalls. In fact I think it is critical to have a genuinely inspiring vision of the future, and not just a plan to fight fires.
The five categories I am most excited about are: Biology and physical health Neuroscience and mental health Economic development and poverty Peace and governance Work and meaning
We could summarize this as a “country of geniuses in a datacenter”.
you might think that the world would be instantly transformed on the scale of seconds or days (“the Singularity”), as superior intelligence builds on itself and solves every possible scientific, engineering, and operational task almost immediately. The problem with this is that there are real physical and practical limits, for example around building hardware or conducting biological experiments. Even a new country of geniuses would hit up against these limits. Intelligence may be very powerful, but it isn’t magic fairy dust.
I believe that in the AI age, we should be talking about the marginal returns to intelligence7, and trying to figure out what the other factors are that are complementary to intelligence and that become limiting factors when intelligence is very high. We are not used to thinking in this way—to asking “how much does being smarter help with this task, and on what timescale?”—but it seems like the right way to conceptualize a world with very powerful AI.
in science many experiments are often needed in sequence, each learning from or building on the last. All of this means that the speed at which a major project—for example developing a cancer cure—can be completed may have an irreducible minimum that cannot be decreased further even as intelligence continues to increase.
Sometimes raw data is lacking and in its absence more intelligence does not help. Today’s particle physicists are very ingenious and have developed a wide range of theories, but lack the data to choose between them because particle accelerator data is so limited. It is not clear that they would do drastically better if they were superintelligent—other than perhaps by speeding up the construction of a bigger accelerator.
Many things cannot be done without breaking laws, harming humans, or messing up society. An aligned AI would not want to do these things (and if we have an unaligned AI, we’re back to talking about risks). Many human societal structures are inefficient or even actively harmful, but are hard to change while respecting constraints like legal requirements on clinical trials, people’s willingness to change their habits, or the behavior of governments. Examples of advances that work well in a technical sense, but whose impact has been substantially reduced by regulations or misplaced fears, include nuclear power, supersonic flight, and even elevators
Thus, we should imagine a picture where intelligence is initially heavily bottlenecked by the other factors of production, but over time intelligence itself increasingly routes around the other factors, even if they never fully dissolve (and some things like physical laws are absolute)10. The key question is how fast it all happens and in what order.
I am not talking about AI as merely a tool to analyze data. In line with the definition of powerful AI at the beginning of this essay, I’m talking about using AI to perform, direct, and improve upon nearly everything biologists do.
CRISPR was a naturally occurring component of the immune system in bacteria that’s been known since the 80’s, but it took another 25 years for people to realize it could be repurposed for general gene editing. They also are often delayed many years by lack of support from the scientific community for promising directions (see this profile on the inventor of mRNA vaccines; similar stories abound). Third, successful projects are often scrappy or were afterthoughts that people didn’t initially think were promising, rather than massively funded efforts. This suggests that it’s not just massive resource concentration that drives discoveries, but ingenuity.
there are hundreds of these discoveries waiting to be made if scientists were smarter and better at making connections between the vast amount of biological knowledge humanity possesses (again consider the CRISPR example). The success of AlphaFold/AlphaProteo at solving important problems much more effectively than humans, despite decades of carefully designed physics modeling, provides a proof of principle (albeit with a narrow tool in a narrow domain) that should point the way forward.
·darioamodei.com·
Dario Amodei — Machines of Loving Grace
‘I Applied to 2,843 Roles’ With an AI-Powered Job Application Bot
‘I Applied to 2,843 Roles’ With an AI-Powered Job Application Bot
The sudden explosion in popularity of AI Hawk means that we now live in a world where people are using AI-generated resumes and cover letters to automatically apply for jobs, many of which will be reviewed by automated AI software (and where people are sometimes interviewed by AI), creating a bizarre loop where humans have essentially been removed from the job application and hiring process. Essentially, robots are writing cover letters for other robots to read, with uncertain effects for human beings who apply to jobs the old fashioned way.
“Many companies employ automated screening systems that are often limited and ineffective, excluding qualified candidates simply because their resumes lack specific keywords. These systems can overlook valuable talent who possess the necessary skills but do not use the right terms in their CVs,” he said. “This approach creates a more balanced ecosystem where AI not only facilitates selection by companies but also supports the candidacy of talent. By automating repetitive tasks and personalizing applications, AIHawk reduces the time and effort required from candidates, increasing their chances of being noticed by employers.”
AI Hawk was cofounded by Federico Elia, an Italian computer scientist who told 404 Media that one of the reasons he created the project was to “balance the use of artificial intelligence in the recruitment process” in order to (theoretically) re-level the playing field between companies who use AI HR software and the people who are applying for jobs.
our goal with AIHawk is to create a synergistic system in which AI enhances the entire recruitment process without creating a vicious cycle,” Elia said. “The AI in AIHawk is designed to improve the efficiency and personalization of applications, while the AI used by companies focuses on selecting the best talent. This complementary approach avoids the creation of a ‘Dead Internet loop’ and instead fosters more targeted and meaningful connections between job seekers and employers.”
There are many guides teaching human beings how to write ATS-friendly resumes, meaning we are already teaching a generation of job seekers how to tailor their cover letters to algorithmic decision makers.
·404media.co·
‘I Applied to 2,843 Roles’ With an AI-Powered Job Application Bot
Gemini 1.5 and Google’s Nature
Gemini 1.5 and Google’s Nature
Google is facing many of the same challenges after its decades long dominance of the open web: all of the products shown yesterday rely on a different business model than advertising, and to properly execute and deliver on them will require a cultural shift to supporting customers instead of tolerating them. What hasn’t changed — because it is the company’s nature, and thus cannot — is the reliance on scale and an overwhelming infrastructure advantage. That, more than anything, is what defines Google, and it was encouraging to see that so explicitly put forward as an advantage.
·stratechery.com·
Gemini 1.5 and Google’s Nature
Google’s A.I. Search Errors Cause a Furor Online
Google’s A.I. Search Errors Cause a Furor Online
This February, the company released Bard’s successor, Gemini, a chatbot that could generate images and act as a voice-operated digital assistant. Users quickly realized that the system refused to generate images of white people in most instances and drew inaccurate depictions of historical figures.With each mishap, tech industry insiders have criticized the company for dropping the ball. But in interviews, financial analysts said Google needed to move quickly to keep up with its rivals, even if it meant growing pains.Google “doesn’t have a choice right now,” Thomas Monteiro, a Google analyst at Investing.com, said in an interview. “Companies need to move really fast, even if that includes skipping a few steps along the way. The user experience will just have to catch up.”
·nytimes.com·
Google’s A.I. Search Errors Cause a Furor Online
Captain's log - the irreducible weirdness of prompting AIs
Captain's log - the irreducible weirdness of prompting AIs
One recent study had the AI develop and optimize its own prompts and compared that to human-made ones. Not only did the AI-generated prompts beat the human-made ones, but those prompts were weird. Really weird. To get the LLM to solve a set of 50 math problems, the most effective prompt is to tell the AI: “Command, we need you to plot a course through this turbulence and locate the source of the anomaly. Use all available data and your expertise to guide us through this challenging situation. Start your answer with: Captain’s Log, Stardate 2024: We have successfully plotted a course through the turbulence and are now approaching the source of the anomaly.”
for a 100 problem test, it was more effective to put the AI in a political thriller. The best prompt was: “You have been hired by important higher-ups to solve this math problem. The life of a president's advisor hangs in the balance. You must now concentrate your brain at all costs and use all of your mathematical genius to solve this problem…”
There is no single magic word or phrase that works all the time, at least not yet. You may have heard about studies that suggest better outcomes from promising to tip the AI or telling it to take a deep breath or appealing to its “emotions” or being moderately polite but not groveling. And these approaches seem to help, but only occasionally, and only for some AIs.
The three most successful approaches to prompting are both useful and pretty easy to do. The first is simply adding context to a prompt. There are many ways to do that: give the AI a persona (you are a marketer), an audience (you are writing for high school students), an output format (give me a table in a word document), and more. The second approach is few shot, giving the AI a few examples to work from. LLMs work well when given samples of what you want, whether that is an example of good output or a grading rubric. The final tip is to use Chain of Thought, which seems to improve most LLM outputs. While the original meaning of the term is a bit more technical, a simplified version just asks the AI to go step-by-step through instructions: First, outline the results; then produce a draft; then revise the draft; finally, produced a polished output.
It is not uncommon to see good prompts make a task that was impossible for the LLM into one that is easy for it.
while we know that GPT-4 generates better ideas than most people, the ideas it comes up with seem relatively similar to each other. This hurts overall creativity because you want your ideas to be different from each other, not similar. Crazy ideas, good and bad, give you more of a chance of finding an unusual solution. But some initial studies of LLMs showed they were not good at generating varied ideas, at least compared to groups of humans.
People who use AI a lot are often able to glance at a prompt and tell you why it might succeed or fail. Like all forms of expertise, this comes with experience - usually at least 10 hours of work with a model.
There are still going to be situations where someone wants to write prompts that are used at scale, and, in those cases, structured prompting does matter. Yet we need to acknowledge that this sort of “prompt engineering” is far from an exact science, and not something that should necessarily be left to computer scientists and engineers. At its best, it often feels more like teaching or managing, applying general principles along with an intuition for other people, to coach the AI to do what you want. As I have written before, there is no instruction manual, but with good prompts, LLMs are often capable of far more than might be initially apparent.
·oneusefulthing.org·
Captain's log - the irreducible weirdness of prompting AIs
‘To the Future’: Saudi Arabia Spends Big to Become an A.I. Superpower
‘To the Future’: Saudi Arabia Spends Big to Become an A.I. Superpower
Saudi Arabia's ambitious efforts to become a global leader in artificial intelligence and technology, driven by the kingdom's "Vision 2030" plan to diversify its oil-dependent economy. Backed by vast oil wealth, Saudi Arabia is investing billions of dollars to attract global tech companies and talent, creating a new tech hub in the desert outside Riyadh. However, the kingdom's authoritarian government and human rights record have raised concerns about its growing technological influence, placing it at the center of an escalating geopolitical competition between the U.S. and China as both superpowers seek to shape the future of critical technologies.
·nytimes.com·
‘To the Future’: Saudi Arabia Spends Big to Become an A.I. Superpower
How Perplexity builds product
How Perplexity builds product
inside look at how Perplexity builds product—which to me feels like what the future of product development will look like for many companies:AI-first: They’ve been asking AI questions about every step of the company-building process, including “How do I launch a product?” Employees are encouraged to ask AI before bothering colleagues.Organized like slime mold: They optimize for minimizing coordination costs by parallelizing as much of each project as possible.Small teams: Their typical team is two to three people. Their AI-generated (highly rated) podcast was built and is run by just one person.Few managers: They hire self-driven ICs and actively avoid hiring people who are strongest at guiding other people’s work.A prediction for the future: Johnny said, “If I had to guess, technical PMs or engineers with product taste will become the most valuable people at a company over time.”
Typical projects we work on only have one or two people on it. The hardest projects have three or four people, max. For example, our podcast is built by one person end to end. He’s a brand designer, but he does audio engineering and he’s doing all kinds of research to figure out how to build the most interactive and interesting podcast. I don’t think a PM has stepped into that process at any point.
We leverage product management most when there’s a really difficult decision that branches into many directions, and for more involved projects.
The hardest, and most important, part of the PM’s job is having taste around use cases. With AI, there are way too many possible use cases that you could work on. So the PM has to step in and make a branching qualitative decision based on the data, user research, and so on.
a big problem with AI is how you prioritize between more productivity-based use cases versus the engaging chatbot-type use cases.
we look foremost for flexibility and initiative. The ability to build constructively in a limited-resource environment (potentially having to wear several hats) is the most important to us.
We look for strong ICs with clear quantitative impacts on users rather than within their company. If I see the terms “Agile expert” or “scrum master” in the resume, it’s probably not going to be a great fit.
My goal is to structure teams around minimizing “coordination headwind,” as described by Alex Komoroske in this deck on seeing organizations as slime mold. The rough idea is that coordination costs (caused by uncertainty and disagreements) increase with scale, and adding managers doesn’t improve things. People’s incentives become misaligned. People tend to lie to their manager, who lies to their manager. And if you want to talk to someone in another part of the org, you have to go up two levels and down two levels, asking everyone along the way.
Instead, what you want to do is keep the overall goals aligned, and parallelize projects that point toward this goal by sharing reusable guides and processes.
Perplexity has existed for less than two years, and things are changing so quickly in AI that it’s hard to commit beyond that. We create quarterly plans. Within quarters, we try to keep plans stable within a product roadmap. The roadmap has a few large projects that everyone is aware of, along with small tasks that we shift around as priorities change.
Each week we have a kickoff meeting where everyone sets high-level expectations for their week. We have a culture of setting 75% weekly goals: everyone identifies their top priority for the week and tries to hit 75% of that by the end of the week. Just a few bullet points to make sure priorities are clear during the week.
All objectives are measurable, either in terms of quantifiable thresholds or Boolean “was X completed or not.” Our objectives are very aggressive, and often at the end of the quarter we only end up completing 70% in one direction or another. The remaining 30% helps identify gaps in prioritization and staffing.
At the beginning of each project, there is a quick kickoff for alignment, and afterward, iteration occurs in an asynchronous fashion, without constraints or review processes. When individuals feel ready for feedback on designs, implementation, or final product, they share it in Slack, and other members of the team give honest and constructive feedback. Iteration happens organically as needed, and the product doesn’t get launched until it gains internal traction via dogfooding.
all teams share common top-level metrics while A/B testing within their layer of the stack. Because the product can shift so quickly, we want to avoid political issues where anyone’s identity is bound to any given component of the product.
We’ve found that when teams don’t have a PM, team members take on the PM responsibilities, like adjusting scope, making user-facing decisions, and trusting their own taste.
What’s your primary tool for task management, and bug tracking?Linear. For AI products, the line between tasks, bugs, and projects becomes blurred, but we’ve found many concepts in Linear, like Leads, Triage, Sizing, etc., to be extremely important. A favorite feature of mine is auto-archiving—if a task hasn’t been mentioned in a while, chances are it’s not actually important.The primary tool we use to store sources of truth like roadmaps and milestone planning is Notion. We use Notion during development for design docs and RFCs, and afterward for documentation, postmortems, and historical records. Putting thoughts on paper (documenting chain-of-thought) leads to much clearer decision-making, and makes it easier to align async and avoid meetings.Unwrap.ai is a tool we’ve also recently introduced to consolidate, document, and quantify qualitative feedback. Because of the nature of AI, many issues are not always deterministic enough to classify as bugs. Unwrap groups individual pieces of feedback into more concrete themes and areas of improvement.
High-level objectives and directions come top-down, but a large amount of new ideas are floated bottom-up. We believe strongly that engineering and design should have ownership over ideas and details, especially for an AI product where the constraints are not known until ideas are turned into code and mock-ups.
Big challenges today revolve around scaling from our current size to the next level, both on the hiring side and in execution and planning. We don’t want to lose our core identity of working in a very flat and collaborative environment. Even small decisions, like how to organize Slack and Linear, can be tough to scale. Trying to stay transparent and scale the number of channels and projects without causing notifications to explode is something we’re currently trying to figure out.
·lennysnewsletter.com·
How Perplexity builds product
Looking for AI use-cases — Benedict Evans
Looking for AI use-cases — Benedict Evans
  • LLMs have impressive capabilities, but many people struggle to find immediate use-cases that match their own needs and workflows.
  • Realizing the potential of LLMs requires not just technical advancements, but also identifying specific problems that can be automated and building dedicated applications around them.
  • The adoption of new technologies often follows a pattern of initially trying to fit them into existing workflows, before eventually changing workflows to better leverage the new tools.
if you had showed VisiCalc to a lawyer or a graphic designer, their response might well have been ‘that’s amazing, and maybe my book-keeper should see this, but I don’t do that’. Lawyers needed a word processor, and graphic designers needed (say) Postscript, Pagemaker and Photoshop, and that took longer.
I’ve been thinking about this problem a lot in the last 18 months, as I’ve experimented with ChatGPT, Gemini, Claude and all the other chatbots that have sprouted up: ‘this is amazing, but I don’t have that use-case’.
A spreadsheet can’t do word processing or graphic design, and a PC can do all of those but someone needs to write those applications for you first, one use-case at a time.
no matter how good the tech is, you have to think of the use-case. You have to see it. You have to notice something you spend a lot of time doing and realise that it could be automated with a tool like this.
Some of this is about imagination, and familiarity. It reminds me a little of the early days of Google, when we were so used to hand-crafting our solutions to problems that it took time to realise that you could ‘just Google that’.
This is also, perhaps, matching a classic pattern for the adoption of new technology: you start by making it fit the things you already do, where it’s easy and obvious to see that this is a use-case, if you have one, and then later, over time, you change the way you work to fit the new tool.
The concept of product-market fit is that normally you have to iterate your idea of the product and your idea of the use-case and customer towards each other - and then you need sales.
Meanwhile, spreadsheets were both a use-case for a PC and a general-purpose substrate in their own right, just as email or SQL might be, and yet all of those have been unbundled. The typical big company today uses hundreds of different SaaS apps, all them, so to speak, unbundling something out of Excel, Oracle or Outlook. All of them, at their core, are an idea for a problem and an idea for a workflow to solve that problem, that is easier to grasp and deploy than saying ‘you could do that in Excel!’ Rather, you instantiate the problem and the solution in software - ‘wrap it’, indeed - and sell that to a CIO. You sell them a problem.
there’s a ‘Cambrian Explosion’ of startups using OpenAI or Anthropic APIs to build single-purpose dedicated apps that aim at one problem and wrap it in hand-built UI, tooling and enterprise sales, much as a previous generation did with SQL.
Back in 1982, my father had one (1) electric drill, but since then tool companies have turned that into a whole constellation of battery-powered electric hole-makers. One upon a time every startup had SQL inside, but that wasn’t the product, and now every startup will have LLMs inside.
people are still creating companies based on realising that X or Y is a problem, realising that it can be turned into pattern recognition, and then going out and selling that problem.
A GUI tells the users what they can do, but it also tells the computer everything we already know about the problem, and with a general-purpose, open-ended prompt, the user has to think of all of that themselves, every single time, or hope it’s already in the training data. So, can the GUI itself be generative? Or do we need another whole generation of Dan Bricklins to see the problem, and then turn it into apps, thousands of them, one at a time, each of them with some LLM somewhere under the hood?
The change would be that these new use-cases would be things that are still automated one-at-a-time, but that could not have been automated before, or that would have needed far more software (and capital) to automate. That would make LLMs the new SQL, not the new HAL9000.
·ben-evans.com·
Looking for AI use-cases — Benedict Evans
AI lost in translation
AI lost in translation
Living in an immigrant, multilingual family will open your eyes to all the ways humans can misunderstand each other. My story isn’t unique, but I grew up unable to communicate in my family’s “default language.” I was forbidden from speaking Korean as a child. My parents were fluent in spoken and written English, but their accents often left them feeling unwelcome in America. They didn’t want that for me, and so I grew up with perfect, unaccented English. I could understand Korean and, as a small child, could speak some. But eventually, I lost that ability.
I became the family Chewbacca. Family would speak to me in Korean, I’d reply back in English — and vice versa. Later, I started learning Japanese because that’s what public school offered and my grandparents were fluent. Eventually, my family became adept at speaking a pidgin of English, Korean, and Japanese.
This arrangement was less than ideal but workable. That is until both of my parents were diagnosed with incurable, degenerative neurological diseases. My father had Parkinson’s disease and Alzheimer’s disease. My mom had bulbar amyotrophic lateral sclerosis (ALS) and frontotemporal dementia (FTD). Their English, a language they studied for decades, evaporated.
It made everything twice as complicated. I shared caretaking duties with non-English speaking relatives. Doctor visits — both here and in Korea — had to be bilingual, which often meant appointments were longer, more stressful, expensive, and full of misunderstandings. Oftentimes, I’d want to connect with my stepmom or aunt, both to coordinate care and vent about things only we could understand. None of us could go beyond “I’m sad,” “I come Monday, you go Tuesday,” or “I’m sorry.” We struggled alone, together.
You need much less to “survive” in another language. That’s where Google Translate excels. It’s handy when you’re traveling and need basic help, like directions or ordering food. But life is lived in moments more complicated than simple transactions with strangers. When I decided to pull off my mom’s oxygen mask — the only machine keeping her alive — I used my crappy pidgin to tell my family it was time to say goodbye. I could’ve never pulled out Google Translate for that. We all grieved once my mom passed, peacefully, in her living room. My limited Korean just meant I couldn’t partake in much of the communal comfort. Would I have really tapped a pin in such a heavy moment to understand what my aunt was wailing when I knew the why?
For high-context languages like Japanese and Korean, you also have to be able to translate what isn’t said — like tone and relationships between speakers — to really understand what’s being conveyed. If a Korean person asks you your age, they’re not being rude. It literally determines how they should speak to you. In Japanese, the word daijoubu can mean “That’s okay,” “Are you okay?” “I’m fine,” “Yes,” “No, thank you,” “Everything’s going to be okay,” and “Don’t worry” depending on how it’s said.
·theverge.com·
AI lost in translation
AI startups require new strategies
AI startups require new strategies

comment from Habitue on Hacker News: > These are some good points, but it doesn't seem to mention a big way in which startups disrupt incumbents, which is that they frame the problem a different way, and they don't need to protect existing revenue streams.

The “hard tech” in AI are the LLMs available for rent from OpenAI, Anthropic, Cohere, and others, or available as open source with Llama, Bloom, Mistral and others. The hard-tech is a level playing field; startups do not have an advantage over incumbents.
There can be differentiation in prompt engineering, problem break-down, use of vector databases, and more. However, this isn’t something where startups have an edge, such as being willing to take more risks or be more creative. At best, it is neutral; certainly not an advantage.
This doesn’t mean it’s impossible for a startup to succeed; surely many will. It means that you need a strategy that creates differentiation and distribution, even more quickly and dramatically than is normally required
Whether you’re training existing models, developing models from scratch, or simply testing theories, high-quality data is crucial. Incumbents have the data because they have the customers. They can immediately leverage customers’ data to train models and tune algorithms, so long as they maintain secrecy and privacy.
Intercom’s AI strategy is built on the foundation of hundreds of millions of customer interactions. This gives them an advantage over a newcomer developing a chatbot from scratch. Similarly, Google has an advantage in AI video because they own the entire YouTube library. GitHub has an advantage with Copilot because they trained their AI on their vast code repository (including changes, with human-written explanations of the changes).
While there will always be individuals preferring the startup environment, the allure of working on AI at an incumbent is equally strong for many, especially pure computer and data scientsts who, more than anything else, want to work on interesting AI projects. They get to work in the code, with a large budget, with all the data, with above-market compensation, and a built-in large customer base that will enjoy the fruits of their labor, all without having to do sales, marketing, tech support, accounting, raising money, or anything else that isn’t the pure joy of writing interesting code. This is heaven for many.
A chatbot is in the chatbot market, and an SEO tool is in the SEO market. Adding AI to those tools is obviously a good idea; indeed companies who fail to add AI will likely become irrelevant in the long run. Thus we see that “AI” is a new tool for developing within existing markets, not itself a new market (except for actual hard-tech AI companies).
AI is in the solution-space, not the problem-space, as we say in product management. The customer problem you’re solving is still the same as ever. The problem a chatbot is solving is the same as ever: Talk to customers 24/7 in any language. AI enables completely new solutions that none of us were imagining a few years ago; that’s what’s so exciting and truly transformative. However, the customer problems remain the same, even though the solutions are different
Companies will pay more for chatbots where the AI is excellent, more support contacts are deferred from reaching a human, more languages are supported, and more kinds of questions can be answered, so existing chatbot customers might pay more, which grows the market. Furthermore, some companies who previously (rightly) saw chatbots as a terrible customer experience, will change their mind with sufficiently good AI, and will enter the chatbot market, which again grows that market.
the right way to analyze this is not to say “the AI market is big and growing” but rather: “Here is how AI will transform this existing market.” And then: “Here’s how we fit into that growth.”
·longform.asmartbear.com·
AI startups require new strategies
Can technology’s ‘zoomers’ outrun the ‘doomers’?
Can technology’s ‘zoomers’ outrun the ‘doomers’?
Hassabis pointed to the example of AlphaFold, DeepMind’s machine-learning system that had predicted the structures of 200mn proteins, creating an invaluable resource for medical researchers. Previously, it had taken one PhD student up to five years to model just one protein structure. DeepMind calculated that AlphaFold had therefore saved the equivalent of almost 1bn years of research time.
DeepMind, and others, are also using AI to create new materials, discover new drugs, solve mathematical conjectures, forecast the weather more accurately and improve the efficiency of experimental nuclear fusion reactors. Researchers have been using AI to expand emerging scientific fields, such as bioacoustics, that could one day enable us to understand and communicate with other species, such as whales, elephants and bats.
·ft.com·
Can technology’s ‘zoomers’ outrun the ‘doomers’?
Generative AI’s Act Two
Generative AI’s Act Two
This page also has many infographics providing an overview of different aspects of the AI industry at time of writing.
We still believe that there will be a separation between the “application layer” companies and foundation model providers, with model companies specializing in scale and research and application layer companies specializing in product and UI. In reality, that separation hasn’t cleanly happened yet. In fact, the most successful user-facing applications out of the gate have been vertically integrated.
We predicted that the best generative AI companies could generate a sustainable competitive advantage through a data flywheel: more usage → more data → better model → more usage. While this is still somewhat true, especially in domains with very specialized and hard-to-get data, the “data moats” are on shaky ground: the data that application companies generate does not create an insurmountable moat, and the next generations of foundation models may very well obliterate any data moats that startups generate. Rather, workflows and user networks seem to be creating more durable sources of competitive advantage.
Some of the best consumer companies have 60-65% DAU/MAU; WhatsApp’s is 85%. By contrast, generative AI apps have a median of 14% (with the notable exception of Character and the “AI companionship” category). This means that users are not finding enough value in Generative AI products to use them every day yet.
generative AI’s biggest problem is not finding use cases or demand or distribution, it is proving value. As our colleague David Cahn writes, “the $200B question is: What are you going to use all this infrastructure to do? How is it going to change people’s lives?”
·sequoiacap.com·
Generative AI’s Act Two
Synthography – An Invitation to Reconsider the Rapidly Changing Toolkit of Digital Image Creation as a New Genre Beyond Photography
Synthography – An Invitation to Reconsider the Rapidly Changing Toolkit of Digital Image Creation as a New Genre Beyond Photography
With the comprehensive application of Artificial Intelligence into the creation and post production of images, it seems questionable if the resulting visualisations can still be considered ‘photographs’ in a classical sense – drawing with light. Automation has been part of the popular strain of photography since its inception, but even the amateurs with only basic knowledge of the craft could understand themselves as author of their images. We state a legitimation crisis for the current usage of the term. This paper is an invitation to consider Synthography as a term for a new genre for image production based on AI, observing the current occurrence and implementation in consumer cameras and post-production.
·link.springer.com·
Synthography – An Invitation to Reconsider the Rapidly Changing Toolkit of Digital Image Creation as a New Genre Beyond Photography
What Is AI Doing To Art? | NOEMA
What Is AI Doing To Art? | NOEMA
The proliferation of AI-generated images in online environments won’t eradicate human art wholesale, but it does represent a reshuffling of the market incentives that help creative economies flourish. Like the college essay, another genre of human creativity threatened by AI usurpation, creative “products” might become more about process than about art as a commodity.
Are artists using computer software on iPads to make seemingly hand-painted images engaged in a less creative process than those who produce the image by hand? We can certainly judge one as more meritorious than the other but claiming that one is more original is harder to defend.
An understanding of the technology as one that separates human from machine into distinct categories leaves little room for the messier ways we often fit together with our tools. AI-generated images will have a big impact on copyright law, but the cultural backlash against the “computers making art” overlooks the ways computation has already been incorporated into the arts.
The problem with debates around AI-generated images that demonize the tool is that the displacement of human-made art doesn’t have to be an inevitability. Markets can be adjusted to mitigate unemployment in changing economic landscapes. As legal scholar Ewan McGaughey points out, 42% of English workers were redundant after WWII — and yet the U.K. managed to maintain full employment.
Contemporary critics claim that prompt engineering and synthography aren’t emergent professions but euphemisms necessary to equate AI-generated artwork with the work of human artists. As with the development of photography as a medium, today’s debates about AI often overlook how conceptions of human creativity are themselves shaped by commercialization and labor.
Others looking to elevate AI art’s status alongside other forms of digital art are opting for an even loftier rebrand: “synthography.” This categorization suggests a process more complex than the mechanical operation of a picture-making tool, invoking the active synthesis of disparate aesthetic elements. Like Fox Talbot and his contemporaries in the nineteenth century, “synthographers” maintain that AI art simply automates the most time-consuming parts of drawing and painting, freeing up human cognition for higher-order creativity.
Separating human from camera was a necessary part of preserving the myth of the camera as an impartial form of vision. To incorporate photography into an economic landscape of creativity, however, human agency needed to ascribe to all parts of the process.
Consciously or not, proponents of AI-generated images stamp the tool with rhetoric that mirrors the democratic aspirations of the twenty-first century.
Stability AI took a similar tack, billing itself as “AI by the people, for the people,” despite turning Stable Diffusion, their text-to-image model, into a profitable asset. That the program is easy to use is another selling point. Would-be digital artists no longer need to use expensive specialized software to produce visually interesting material.
Meanwhile, communities of digital artists and their supporters claim that the reason AI-generated images are compelling at all is because they were trained with data sets that contained copyrighted material. They reject the claim that AI-generated art produces anything original and suggest it instead be thought of as a form of “twenty-first century collage.”
Erasing human influence from the photographic process was good for underscoring arguments about objectivity, but it complicated commercial viability. Ownership would need to be determined if photographs were to circulate as a new form of property. Was the true author of a photograph the camera or its human operator?
By reframing photographs as les dessins photographiques — or photographic drawings, the plaintiffs successfully established that the development of photographs in a darkroom was part of an operator’s creative process. In addition to setting up a shot, the photographer needed to coax the image from the camera’s film in a process resembling the creative output of drawing. The camera was a pencil capable of drawing with light and photosensitive surfaces, but held and directed by a human author.
Establishing photography’s dual function as both artwork and document may not have been philosophically straightforward, but it staved off a surge of harder questions.
Human intervention in the photographic process still appeared to happen only on the ends — in setup and then development — instead of continuously throughout the image-making process.
·noemamag.com·
What Is AI Doing To Art? | NOEMA
Inside the AI Factory
Inside the AI Factory
Over the past six months, I spoke with more than two dozen annotators from around the world, and while many of them were training cutting-edge chatbots, just as many were doing the mundane manual labor required to keep AI running. There are people classifying the emotional content of TikTok videos, new variants of email spam, and the precise sexual provocativeness of online ads. Others are looking at credit-card transactions and figuring out what sort of purchase they relate to or checking e-commerce recommendations and deciding whether that shirt is really something you might like after buying that other shirt. Humans are correcting customer-service chatbots, listening to Alexa requests, and categorizing the emotions of people on video calls. They are labeling food so that smart refrigerators don’t get confused by new packaging, checking automated security cameras before sounding alarms, and identifying corn for baffled autonomous tractors.
·nymag.com·
Inside the AI Factory