"The Cognitive Revolution" | AI Builders, Researchers, and Live Player Analysis cover image

AI Agents, VC Insights on AI, and Building in Public with Yohei Nakajima, Creator of BabyAGI

"The Cognitive Revolution" | AI Builders, Researchers, and Live Player Analysis

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Exploring Business Models in the AI Application Layer

In the AI application layer, there is significant potential for value creation through various business models. These models range from niche-specific AI use cases to those leveraging AI to gain a competitive edge. Diversifying business models within the application layer is advisable for hedging risks. Business models can include leveraging LLMs for backend data processing to achieve higher margins, using wrappers to embed deeply into user workflows, and employing scalable services through AI automation for customer service and sales. Additionally, companies can excel internally by effectively utilizing LLMs and AI tools, leading to enhanced operational efficiency surpassing that of competitors.

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