⚠️ Note: This log is free written. It might contain thoughts in progress, mistakes, errors and logical fallacies. It is not thought leadership.
I've always wondered about whether if entrepreneurs were carefully evaluating how they were adopting AI in their business. On a most base level, if the cost of delivery of AI-powered features is variable in line with customer consumption, aren't you basically destroying your underlying financial and business model in the long run?
If I sell lemonade and had to pay for every lemonade squeezed, am I simply not a reseller?
Plus with a human workforce, you don't have to immediately pay for improvements... so is human intelligence now not inherently cheaper in the long run?... or more like an ideal mix that makes the most sense for your business model.
AI business vs Saas business inherent difference
Thought: If your business model relies on AI, it seems you don't get the economies of scale that a traditional SaaS does (or at least not in the same way). If you are a SaaS integrating into your product, it's probably important to take a look at how that impacts the cost of operating and whether or not you need to consider how you price the AI features
Classic SaaS = zero-marginal-cost scale.
API Resellers = fragile economics, vendor risk.
AI-SaaS Hybrids = sweet spot if pricing is right.
AI Infra Builders = high-risk, high-reward, capex heavy.
Software as a service VS Service as a Software