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RE: LeoThread 2024-09-14 07:10

in LeoFinance5 months ago

The AI Disruptobloat: How Overproduction Dilutes Value but Accelerates Innovation

Hype vs. substance

I’m coining the word ‘disruptobloat’ to describe a distinct season that any major technology goes through:

VC funds are running high for 50 versions of the same use case.
Everyone’s LinkedIn tagline indicates they’ve been a decade-old expert in [some new tech] (I say this shamelessly, as my own LinkedIn includes both crypto & AI)
Headlines slowly move from “all companies are building in [tech]” to “Are consumers fed up with [tech]?” to the merciless butt-of-the-joke and “what went wrong”.
Disruptobloat is a phenomenon of overproduction: [some new tech]-driven products flood the market, diluting the perception of value in the short term.

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It’s a race towards the same thing: discovering a sticky use case that shapes new customer behaviors and accrues value. It’s not a bug; it’s a necessary step in the evolution, and a good thing! The bigger the disruptobloat, the faster we get to breakthroughs, because we iterate through ideas faster.

Azeem Azhar from Exponential View breaks it down this way:

Level 1: Do what we do cheaper: (…) automate routine tasks.

Level 2: Do what we do, just do it better: (…) opportunities for qualitative improvements. A major investment bank, for instance, recently used AI to automate much of its unit test coverage. This reduced costs and allowed for more comprehensive testing, improving overall software quality.

Level 3: Do entirely new things. This is where the true potential of AI begins to show (…) But here’s the rub: most businesses are stuck at Level 1 or Level 2. They’re using AI to shave costs or incrementally improve processes, missing the opportunity to strategically rethink what their business could look like (…)