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20VC: AI's Biggest Questions: The Commoditisation of LLMs, Open vs Closed: Who Wins, Model Size vs Data Quality, Why Google are Vulnerable and Apple are the Dark Horse
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
The Future of AI: Shifting Business Models and Architectures
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The next generation of AI will bring about a new architecture and business model. The new architecture will shift from a co-pilot to a control center, where the application does more of the work using AI and agents. The future business model will focus on selling the work, not the software, with service level agreements (SLAs) based on work performance outcomes rather than software uptime. This shift will result in a dominant user experience (UX) for workers rather than managers. The distribution and reach of AI will also change, leading to new revenue models due to changes in average contract values (ACVs). This shift in architecture and business models will be different from the mobile revolution, which mostly brought a new user experience without changing the underlying architecture or business models.
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