Hand over your data or we can't disintermediate you!
AI is so amazing that you MUST tolerate your former SaaS vendors claiming ownership of your most crucial business data to train models eventually competing with your business.
Amazon shops is so amazing, you MUST tolerate Amazon getting full access to your most critical sales data, using it to launch 20k private brands (Amazon Basics) to disintermediate you and everyone else in the industry from your best margin items.
Facebook pages are so amazing to reach your customers,...
Microsoft OneDrive….
Claude Code…
Zoom….
It’s almost as if there is a pattern.
The GenAI hype is either a brilliant piece of social engineering, making countless business and governments forget the very raw lessons from the outsourcing boom of the last 45 years, chiefly that the country you transfer your knowledge to eventually holds all leverage over your economy and that your former outsourcers will put your out of business…
…Or people and companies are just so short sighted, they can’t see the most obvious outcomes despite staring at them for the last 2 decades.
Why on earth do you think that people with the technology to replace workflows and workers when given enough data, can’t replace companies when handed their training data on a platter.
What do you think a company’s business moat is?
❓Workers? Oh wait, you are laying them off.
❓Context? Oh wait, you’re handing it over to every cheap AI API, at least the part not lost in layoffs.
❓Trust? Oh wait, you’re gambling with it with fast and lose AI rollout
❓Distribution? Whose platform do you think you’re distributing on and who owns the moat?
❓Data? lol
Of course the issue is somewhere else: The market runs on short sighted.
The greatest risk is always the next earnings call and what we’re actually seeing is the final act of shareholders executing the equivalent of a 50% attack on the rest of the economy.
Companies have one choice at the moment:
Politicians, completely out of shape and so used to the sweet deal of “leaving it to the market, blaming their political opponents when it goes wrong and pushing to leave even more to the market by abandoning regulation” (See Germany where the key ruling party had nearly uninterrupted power for decades and yet somehow all ails and “over regulation” are somebody else’s fault), that there’s nobody in the driver seat to rescue the market from cascading AI failure.Say you’re all in on AI and produce AI payouts like big tech, powered by layoffs and insane claims of future efficiency or we will drop your shares like a Chegg(dot)comm and will sue you for value destruction
See also yesterday's paper identifying the same failure mode: Raw capitalism not being able to optimize for cascading failure linked below.
Everyone in the market is locked into a classic incentive trap that cannot be broken unless you're optimising for a long term you can't optimise for unless you can defy your own shareholders, and even then, you can't says Zuck, who has full voting power over Meta.
And so this car is going right over the cliff, with all the workers not thrown out of the moving car before in the back.
As a species supposedly able to learn, we really seem hell bent on letting a meatspace construct with a singular “growth objective” run the rather nice civilization we have over the cliff.
AI is so amazing that you MUST tolerate your former SaaS vendors claiming ownership of your most crucial business data to train models eventually competing with your business Amazon shops is so… | Georg Zoeller
AI is so amazing that you MUST tolerate your former SaaS vendors [claiming ownership of your most crucial business data to train models](https://letsdatascience.com/news/atlassian-enables-default-data-collection-to-train-ai-f71343d8) eventually competing with your business. Amazon shops is so amazing, you MUST tolerate Amazon getting full access to your most critical sales data, using it to launch 20k private brands (Amazon Basics) to disintermediate you and everyone else in the industry from your best margin items. Facebook pages are so amazing to reach your customers,... Microsoft OneDrive…. Claude Code… Zoom…. It’s almost as if there is a pattern. The GenAI hype is either a brilliant piece of social engineering, making countless business and governments forget the very raw lessons from the outsourcing boom of the last 45 years, chiefly that the country you transfer your knowledge to eventually holds all leverage over your economy and that your former outsourcers will put your out of business… …Or people and companies are just so short sighted, they can’t see the most obvious outcomes despite staring at them for the last 2 decades. Why on earth do you think that people with the technology to replace workflows and workers when given enough data, can’t replace companies when handed their training data on a platter. What do you think a company’s business moat is? ❓Workers? Oh wait, you are laying them off. ❓Context? Oh wait, you’re handing it over to every cheap AI API, at least the part not lost in layoffs. ❓Trust? Oh wait, you’re gambling with it with fast and lose AI rollout ❓Distribution? Whose platform do you think you’re distributing on and who owns the moat? ❓Data? lol Of course the issue is somewhere else: The market runs on short sighted. The greatest risk is always the next earnings call and what we’re actually seeing is the final act of shareholders executing the equivalent of a 50% attack on the rest of the economy. Companies have one choice at the moment: > Say you’re all in on AI and produce AI payouts like big tech, powered by layoffs and insane claims of future efficiency or we will drop your shares like a Chegg(dot)comm and will sue you for value destruction Politicians, completely out of shape and so used to the sweet deal of “leaving it to the market, blaming their political opponents when it goes wrong and pushing to leave even more to the market by abandoning regulation” (See Germany where the key ruling party had nearly uninterrupted power for decades and yet somehow all ails and “over regulation” are somebody else’s fault), that there’s nobody in the driver seat to rescue the market from cascading AI failure. See also yesterday's paper identifying the same failure mode: Raw capitalism not being able to optimize for cascading failure linked below. ==Everyone in the market is locked into a classic incentive trap that cannot be broken unless you're optimising for a long term you can't optimise for unless you can defy your own shareholders==, and even then, you can't says Zuck, who has full voting power over Meta. And so this car is going right over the cliff, with all the workers not thrown out of the moving car before in the back. As a species supposedly able to learn, we really seem hell bent on letting a meatspace construct with a singular “growth objective” run the rather nice civilization we have over the cliff.
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