How AI apps make money
For example they have lower gross margins. Anecdotally, we have seen gross margins of ML companies at around 50/60% vs 60–80% of comparable SaaS businesses. This is due to two factors. Firstly, the hidden cost of the cloud infrastructure. Training a single ML model costs thousands of dollars in computing resources. Secondly, many applications requi... See more
Matilde Giglio • What we look for in AI companies (and why they are different)
The AI Entrepreneur: How to Make Money with AI: From Idea to Launch — Build, Fund, Market, and Scale Your AI Business in 90 Days or Less
amazon.com
Zillow also introduced a sophisticated algorithm for pricing leads to agents that attempts to calculate the economic value of the lead, with an estimate of conversion rates.
Thomas H. Davenport • Keeping Up with the Quants: Your Guide to Understanding and Using Analytics
API wrappers, general-purpose AI tools and third-party AI tools for big platforms.
API wrappers have a weak moat.
General AI tools try to be the jack-of-all-trades.
Big platforms will eat up small apps by adding similar AI features themselves.
API wrappers have a weak moat.
General AI tools try to be the jack-of-all-trades.
Big platforms will eat up small apps by adding similar AI features themselves.
Shortwave — rajhesh.panchanadhan@gmail.com [Gmail alternative]
Charge customers more for novel, AI-based features such as personalization, insight generation, and automation.
Ash Fontana • The AI-First Company: How to Compete and Win with Artificial Intelligence
