The Coming Collapse of AI

This Week

• Long Read: The Coming Collapse of AI

• Opinion: Will AI Replace You? by Liza Adams

• Around the Web: The Death of Subscription-Based Pricing, Nvidia’s Exponential Growth, AI Driving Job Cuts

The Coming Collapse of AI

Large language models made by companies like OpenAI are hungry for training data. But according to just about everyone, they’re running out of high-quality text data — which some say will lead to the collapse of LLMs.

Generative AI models need to train on human-produced data to function. If they don’t, they start showing “irreversible” defects, and their outputs become nonsensical and homogenous. 

If you’ve used ChatGPT enough, you’ll know how often you get a bad output — imagine this in a downward spiral, where every prompt returns a stream of rubbish. 

My chatbot and AI collaboration is so deeply entrenched in my workflows, model collapse would be catastrophic. The thought makes me break out in a cold sweat…

Read on at Medium to find out what model collapse means for you.

Rethinking the ‘AI Won’t Replace You’ Notion

By Liza Adams, AI Advisor & Fractional CMO, GrowthPath Partners 

For a while, we've heard the reassurance: "AI won't replace you; people who use AI will." But recent events like layoffs at Grammarly driven by AI enablement, not cost-cutting, and Palo Alto Networks' significant efficiency gains through AI hint at a more complex reality. 

Tyler Perry also put his $800M studio expansion plans on hold after seeing the text-to-video capabilities of Sora. He mentioned that jobs will be lost and called for regulation to protect workers.

These early indications have me questioning if that notion oversimplifies the impact of AI on jobs. 

Are we witnessing the first ripples of a bigger workplace transformation?

The stats are startling. 77% fear AI could cause job losses within a year, according to Forbes Advisor. And McKinsey estimates 400 million workers could be displaced by 2030. Yet the World Economic Forum projects AI creating 97 million new jobs too.

So it's not just about being outpaced by colleagues leveraging AI better. The real concern is - will there be enough new jobs for humans to absorb those displaced by AI? And can we reskill quickly enough for emerging opportunities?

With potential mass displacement on one side and significant job creation on the other, the impact feels far from black and white. 

What if AI replaces jobs faster than it creates new ones - even with retraining efforts?

One thing is clear - AI is reshaping the job landscape in complex ways. The key question is, how do we adapt? 

You can join the discussion on Linkedin. 

The Death of Subscription-Based Pricing

Kyle Poyar, Operating Partner at OpenView, writes about SaaS pricing and business models. In his latest article, he raises an important question: is subscription pricing dead? 

He says that SaaS companies lean on pricing models that no longer make sense for customers’ adoption patterns or value realization. Software trends like automation, AI, and API-first products don’t really work with traditional seat-based subscriptions.

It’s especially obvious when it comes to AI, which takes automation to a new level. It eliminates the need for whole teams of people for ongoing routine work, which makes per-seat pricing hard to justify.

But what comes next? Read Kyle’s article to find out. 

Nvidia’s Explosive Growth, Explained

Nvidia, maker of the GPU powering the AI revolution, reported breathtaking earnings recently. The company has seen explosive growth this year and has a market cap of $1.94 trillion.

What does this mean for the AI chip race? 

Tech giants Google, Microsoft, and Meta are chafing at their dependence on chip maker Nvidia, so they’re investing billions in the race to develop their own AI-specific chips.

Creating their own chips means they can tailor-make their hardware to suit their needs. This vertical integration leads to enhanced performance of their platforms, reduced operational costs, and a faster rollout of new AI-driven features. And owning the chip design process makes them less susceptible to market shortages and supply chain issues.

Why should you care?

GPUs power every AI-powered platform you use, and the better, faster, cheaper maker of these chips will be the likely winner, producing better AI outputs for its users. 

For a deep dive into what this means for marketers, take a read of my Medium article. 

AI Driving Record Job Cuts (And Company Profits!)

Scott Galloway, NYU Professor and frequent AI commentator, claims companies’ job cuts and subsequent profits show a common denominator: artificial intelligence. 

“Jobs are being lost, but augmentation will be the broader story. Rather than copywriter Mary losing her job, Mary’s firm will train her on an AI tool that generates first drafts, takes approved product copy and converts it for catalog, web, and social use, and streamlines other tasks. Accordingly, Mary’s manager will expect her to generate three times the copy in the same time.”

AI is allowing managers and teams to tackle more projects without hiring more humans. 

As Galloway says, the AI revolution is here, and it will inspire a golden age of startups with fewer employees, lower mortality rates, and greater growth.

Read the full article on Medium.