In the past seven years, I have immersed myself in the burgeoning world of artificial intelligence as a product manager and now as an entrepreneur, successfully launching two AI-native applications within a yearThis journey has granted me unique insights into the current AI wave, prompting me to pen down my observations based on personal experiences and reflections.

The defining characteristic of the recent AI movement is its unparalleled ability to provide highly personalized services at scaleThe introduction of ChatGPT in the last two years has sparked yet another surge of interest in AI applicationsWhile discussions surrounding these applications flourish, the elusive “Killer App” that revolutionizes use remains absentNevertheless, I staunchly believe that we are witnessing a technological revolution akin to the Industrial Revolution, set to redefine the dynamics of supply and demand while opening new realms of possibility

At its core, this transformation is a reformation of intellectual resource accessibility.

Historically, intellectual resources have been confined to human expertise, marked by their scarcity and high cost, especially in fields such as education, psychological counseling, and legal servicesThese sectors heavily rely on human intellect, which is inherently limited, making such services deemed luxurious and often unaffordable for the average individual.

However, the advent of large language models (LLMs) has dismantled these barriersTo elucidate the connection between the AI movement and the Industrial Revolution, let’s draw parallels from historyThe Industrial Revolution democratized numerous commodities, once exclusive to the affluent.

Take, for instance, textilesPrior to this period, textile production was labor-intensive and costly due to its reliance on manual craftsmanship

• The Global Interest Rate Collapse May Have Just Begun!
• Broadcom Rises 5.5%, Leading Chip Stocks Surge!
• ETH Hits $4,000; Dogecoin Overtakes Porsche
• Altcoins Soar as Bitcoin Consolidates
• Low-Altitude Economy Drives Future Growth

Cotton, for instance, was such a luxury that it was dubbed “white gold.” Fast forward to the Industrial Revolution, where mechanization revolutionized production, significantly lowering costs and making cotton accessible to all.

Another example lies in glass productsBefore industrial advancements, the laborious process of hand-blowing glass resulted in it being a coveted luxury due to its time-consuming natureWith advancements in manufacturing processes, glass windows and mirrors transformed into commonplace items.

Books further illustrate this pointInitially, book duplication was sluggish and pricey, limiting access to the wealthyThe invention of the steam printing press heralded a new era in literature, allowing for mass production and making books available to broader audiences.

Even objects as ordinary as clocks were once seen as status symbolsOnly the elite, often nobles or affluent merchants, were able to afford them, leaving the common populace without means to keep track of time accurately, leading to peculiar professions such as bell-ringers

In essence, the Industrial Revolution made items like cotton textiles, glass, literature, and personal timepieces widely available.

Drawing a parallel, the AI boom aims to eradicate the scarcity of intellectual servicesServices that traditionally required human intellect will soon be democratized, enabling ordinary people to access themThe transformation promises that highly personalized services can be broadened and distributed widely.

But what exactly defines highly personalized services? They are characterized by their reliance on specialized knowledge and an individual's unique circumstances, typically delivered by humansFor instance, my own entrepreneurial venture commenced with the integration of AI in the practice of astrology—a field steeped in individual advice historically delivered by experts.

As I ventured into AI-enhanced astrology, I discovered that the demand for such personalized services has existed unchanged through ages

Despite its historical significance, quality resources in astrology remain limitedTraditionally, astrological insights were imparted via word of mouth and symbolic expressions, leading to a gap where meaningful engagement was often superficial.

In early 2023, while utilizing GPT-3.5, we launched "Lunar Tarot," an AI-driven app that doubled as a platform for astrological readingsIt was a relatively low-cost initiative, thriving on organic growth and achieving break-even swiftlyThis experience reinforced my belief that AI is indeed a transformative force, echoing the Industrial Revolution’s promise of scaling personalization.

Despite the promise of AI, many applications face substantial challenges in their implementationHigh customer acquisition costs remain a major hurdle, as the necessary channels for reaching users remain limited and expensiveAdditionally, the emergence of large models has brought new financial strains, heightening operational costs

The intricacies involved in making AI technology applicable to real-world scenarios cannot be understated; many contexts require complex engineering to meet acceptable delivery standards, and even then, hurdles persist.

Yu Jun, an expert in the field, formulated a product value equation: Product Value = (New Experience - Old Experience) - Migration CostWith inflated costs stemming from new implementations, this equation evolvesThe landscape shifts to: Product Value = [(New Experience - New Cost) - (Old Experience - Old Cost)] - Migration CostAddressing customer acquisition costs becomes essential, further complicating the equation for achieving product-market fit, which can be articulated as:

Commercial Value = [(New Experience - New Cost) - (Old Experience - Old Cost)] - Migration Cost - Customer Acquisition Cost.

The crux of this equation lies in the balance between new experience versus new costs

Without significant improvement over existing experiences, many initiatives may struggle to find grounding in the marketplaceMeeting customer demands effectively necessitates time, and given the rapid reduction in operating costs for large models, the possibility for success in various contexts remains bright.

Over my challenging year and more in entrepreneurial pursuits, I have faced myriad difficulties; yet my optimism remains unshakeableThe operational costs of large models are plummeting—witnessing a 75% decrease in just a year is becoming commonplaceEach drop in cost expands possibilities for diverse applications.

Furthermore, advancements in technology and the wisdom of practitioners enhance our ability to craft superior experiencesMuch like the Industrial Revolution made clothing, footwear, and literature accessible, the AI era promises to usher in a time when personalized services—private tutors, mental health counselors, and more—become integral to everyday life.

In conclusion, while the entrepreneurial journey can be arduous, it is also imbued with exhilaration and privilege