AI’s second order effects

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AI's second order effects

AI summary of the linked article

The article argues that AI could make viable a category of non-AI products that previously failed because they were too cheap to support a sales team. Its puzzle is that a salesperson selling 50 widgets a year at $100,000 pay cannot sell a $500 product profitably, so such products sit in a "dead zone." The author says AI's lower support, sales and retention costs could create a "why now" for these businesses, much as the smartphone enabled Uber. The article adds that AI will likely save incumbents money and spawn more software companies and marketplaces where AI is not the main offering.

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