Existing large market products and services most likely will not bring down the price of their goods and services even if AI reduces the cost to produce.
There is a saying in sales, "Money left on the table". People are already willing to pay current market value prices so they will keep doing so. Why decrease your profits when people are already willing to pay? Keeping the same pricing would maximize profits and stock, a bonus.
New companies that start producing alternative solutions would most likely be the ones to utilize the reduction in cost for producing with AI. It would be their way to get a foot in the door and start building market.
Organizations that focus on providing a good or services to the vulnerable would be an exception. Some companies that market on cost would be in that mix too.
Fair, but in this case you'd still expect LLMs to be a massive boon to startups wanting to compete with the established players?
I'm not seeing any of that happening either, which I'd expect if the AI productivity claims were true and anyone could just vibe-code an entire sustainable business.
There is a saying in sales, "Money left on the table". People are already willing to pay current market value prices so they will keep doing so. Why decrease your profits when people are already willing to pay? Keeping the same pricing would maximize profits and stock, a bonus.
New companies that start producing alternative solutions would most likely be the ones to utilize the reduction in cost for producing with AI. It would be their way to get a foot in the door and start building market.
Organizations that focus on providing a good or services to the vulnerable would be an exception. Some companies that market on cost would be in that mix too.