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"AI, no ads please": 4 words to wipe out $1tn

Mar 07, 2024 - 12challenges.substack.com
The article discusses the potential threat that AI poses to the online advertising industry, which is currently worth $1 trillion a year. The author argues that AI could drastically reduce the number of ads we see by giving us only the content we want, thereby diminishing the advertising space available for sale by platforms like Google, Facebook, and TikTok. The author also suggests that AI operating systems could be a key factor in this shift, as they could use AI to enhance human inputs and control software, potentially reducing ad consumption.

The author identifies potential winners and losers in this scenario, with Meta, Alphabet, and TikTok standing to lose, while OpenAI, Microsoft, and Apple could benefit. The author also notes that this shift doesn't necessarily depend on the actions of these companies, but rather on the race to create the best AI operating system. The author plans to explore this topic further in a series of articles.

Key takeaways:

  • AI poses a significant threat to the ad-based platforms by reducing the number of ads users see, potentially disrupting the $1 trillion adtech industry.
  • AI has the potential to provide users with the content they want, without the intrusion of ads, through AI operating systems (OSes).
  • Big tech companies like OpenAI, Microsoft, and Apple could be winners in this scenario, while Meta, Alphabet, and TikTok could be the losers.
  • The author plans to explore this complex AI vs. ads scenario in a series of articles, addressing various questions about how AI will reduce ad consumption, the role of AI OSes, and the potential winners and losers in this scenario.
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