So far, when asked what's the use case for ChatGPT/LLMs, the sole answer with clear PMF is marketing copy. Agree it is very good for that. Just as crypto had very clear PMF for cross-border payments and stablecoins in middle income countries without dollarized banking. The problem is neither of these use cases is sufficient to justify peak valuations. (OpenAI is currently raising at $30bn.)
Like crypto, there are other potential use cases on the horizon for LLMs. The problem is the tech is still far too clunky, unreliable and impractical for the foreseeable future. LLMs are subject to a devastating hallucination problem, where they confidently report clearly erroneous data. And there is no solution in sight. Marketing copy is one of the sole major use cases, where random inaccuracies is mostly not catastrophic. But you're never going to trust LLMs to write code or legal contracts or technical documentation or even your own emails until the hallucination issue is drastically improved.
That leaves us with a few other niches that are, frankly not very monetizable. ChatGPT is very good at writing student essays, but students don't have very much money to spend. Makes a fun chatbot, but people are unlikely to pay much of anything to have a chat companion.
Like crypto, AI is a case of really intellectually interesting technology that nerdsniped a lot of smart people. Like crypto, AI has a few small (in terms of market size) use cases where there's clear PMF. Like crypto, there are potentially a lot of other much larger use cases that the nerdsniped smart people are imagining. Like crypto, these large use cases are going to require a lot of fundamental improvements to the tech itself before they become feasible. Like crypto in 2021, AI valuations in 2023 are treating those large scale use cases as imminent rather than long-term speculative.
(Note this isn't a statement about which tech has a brighter long-term future. It's still more than possible to believe (as many on HN do) that AI will be transformative over the next couple decades and crypto is vapor. But the point is AI valuations are implying that it's going to be transformative over years not decades, and it's pretty clear that's not the case. There are parallels with crypto in 2021, where regardless of the long-term promise, the short-term returns simply cannot support the valuations.)
Like crypto, there are other potential use cases on the horizon for LLMs. The problem is the tech is still far too clunky, unreliable and impractical for the foreseeable future. LLMs are subject to a devastating hallucination problem, where they confidently report clearly erroneous data. And there is no solution in sight. Marketing copy is one of the sole major use cases, where random inaccuracies is mostly not catastrophic. But you're never going to trust LLMs to write code or legal contracts or technical documentation or even your own emails until the hallucination issue is drastically improved.
That leaves us with a few other niches that are, frankly not very monetizable. ChatGPT is very good at writing student essays, but students don't have very much money to spend. Makes a fun chatbot, but people are unlikely to pay much of anything to have a chat companion.
Like crypto, AI is a case of really intellectually interesting technology that nerdsniped a lot of smart people. Like crypto, AI has a few small (in terms of market size) use cases where there's clear PMF. Like crypto, there are potentially a lot of other much larger use cases that the nerdsniped smart people are imagining. Like crypto, these large use cases are going to require a lot of fundamental improvements to the tech itself before they become feasible. Like crypto in 2021, AI valuations in 2023 are treating those large scale use cases as imminent rather than long-term speculative.
(Note this isn't a statement about which tech has a brighter long-term future. It's still more than possible to believe (as many on HN do) that AI will be transformative over the next couple decades and crypto is vapor. But the point is AI valuations are implying that it's going to be transformative over years not decades, and it's pretty clear that's not the case. There are parallels with crypto in 2021, where regardless of the long-term promise, the short-term returns simply cannot support the valuations.)