Time for some Big Ideas.
I enjoy considering the future of the internet – it’s useful to find potential opportunities, as well as being fun. A recent study commissioned by The Verge and conducted by Two Cents Insights surveyed over two thousand adults in the United States to explore the future of online communities. The findings reveal that traditional social media platforms are losing consumer trust, with forty-two percent of respondents stating that search engines like Google are becoming less useful. As users crave genuine connections, sixty percent view the state of social media negatively, perceiving it as filled with product placements and feeling dehumanized by algorithms. The research highlights a shift towards smaller, purpose-driven communities, with nearly half of consumers preferring spaces that do not allow automated content. The conclusion –authenticity, safety, and meaningful interactions will define the next phase of the internet.
A great contrarian view – Ed Zitron argues that the generative artificial intelligence industr is neither revolutionary nor profitable. He highlights that OpenAI, the largest player in the space, reportedly spent nine billion dollars to generate four billion dollars in revenue in 2024, resulting in a loss of five billion dollars after revenue. This unsustainable financial model raises questions about the industry’s viability, as even paying customers are said to be a financial burden. The article also points out that the majority of OpenAI’s revenue comes from subscriptions, with a mere fifteen million paying users, translating to less than five percent conversion from the estimated four hundred million weekly active users. Additionally, competitor companies like Anthropic and Perplexity are also losing money, with Anthropic projected to lose over five billion dollars in 2024. He asserts that the lack of meaningful products and market penetration suggests that generative AI does not constitute a real industry, and warns of the potential negative impacts on the tech economy if current trends continue.
And within a pair of book reviews in the Washington Post, David Perry discusses the transformative impact of large language models, or LLMs, on higher education. He highlights the insights of John Warner, a college writing instructor, who argues that while these models can generate text at impressive speeds, they do not engage in true writing, which is a complex human process. Warner suggests that the focus in education should shift from formulaic essays that machines can easily produce to fostering a deeper understanding of writing as thinking. This approach encourages students to engage with language meaningfully and reflect on their creative processes. Additionally, Warner criticizes the traditional college advice linking majors directly to jobs, advocating instead for a more holistic understanding of education that considers students’ genuine interests.
Why do we care?
Here are my questions to consider.
How might you and your customers change engagement styles to community focused models?
How might an AI shakeout impact your strategy?
And how does reconsidering learning change your team’s upskilling strategy?