Very interesting perspective, but my guess is that what you've described will be the introductory and intermediary phase during which AI platforms socialize advertising with users and warm them up to the idea, but that the long term incentive for an AI platform is to create a durable, long term relationship with users. Think social network which leverages relationships to bind people to it, but on steroids as the AI will have infiltrated into our every relationship, including our relationships with ourselves. With that sort of model, it makes less sense for AI platforms to auction user intent to the highest bidder as it creates friction on both the user and the advertiser side of the equation. Instead it would make more sense to leverage the durability of the user relationship to lock-in advertisers. Rather than offering up Delta to United loyalists, which requires the consumer to make a decision and could result in a loss to United, work with United to give consumers incentives to maintain a durable, consistent relationship with United. If the consumer is happy with United, they're happy with the platform that makes it easy to book with United, especially if the platform is intelligent and can make related decisions: "I want to go to Cancun." "I've booked your flight, rental car, hotel and local attractions." So I suspect the model will initially scale, but will largely be replaced by consumers coming to trust the AI platforms and preferring consistent, personalized experiences over opportunities. Not always and there will be some openings for suggested selling, but for the most part "give me the usual, ChatGPT".
Do you think 'preferred partner' (or similar language) is clear enough for people? And transparent enough for regulators? I guess that's why a forum is needed.
Loved this one, BOK. Easy to read and digest, though, the privacy ambition keeps getting caught in my throat. *sips water* If what I think I know about YC-bred, eyes on the tech-God prize Sam Altman is true, I highly doubt privacy will have primacy in alpha development. Thus far, he seems perfectly content on passing along this responsibility to the oldest congress in US history...but hope is a divine salve.
Very interesting perspective, but my guess is that what you've described will be the introductory and intermediary phase during which AI platforms socialize advertising with users and warm them up to the idea, but that the long term incentive for an AI platform is to create a durable, long term relationship with users. Think social network which leverages relationships to bind people to it, but on steroids as the AI will have infiltrated into our every relationship, including our relationships with ourselves. With that sort of model, it makes less sense for AI platforms to auction user intent to the highest bidder as it creates friction on both the user and the advertiser side of the equation. Instead it would make more sense to leverage the durability of the user relationship to lock-in advertisers. Rather than offering up Delta to United loyalists, which requires the consumer to make a decision and could result in a loss to United, work with United to give consumers incentives to maintain a durable, consistent relationship with United. If the consumer is happy with United, they're happy with the platform that makes it easy to book with United, especially if the platform is intelligent and can make related decisions: "I want to go to Cancun." "I've booked your flight, rental car, hotel and local attractions." So I suspect the model will initially scale, but will largely be replaced by consumers coming to trust the AI platforms and preferring consistent, personalized experiences over opportunities. Not always and there will be some openings for suggested selling, but for the most part "give me the usual, ChatGPT".
Do you think 'preferred partner' (or similar language) is clear enough for people? And transparent enough for regulators? I guess that's why a forum is needed.
Loved this one, BOK. Easy to read and digest, though, the privacy ambition keeps getting caught in my throat. *sips water* If what I think I know about YC-bred, eyes on the tech-God prize Sam Altman is true, I highly doubt privacy will have primacy in alpha development. Thus far, he seems perfectly content on passing along this responsibility to the oldest congress in US history...but hope is a divine salve.