Analytics can solve generative AI apps’ product problem

The article discusses the importance of product differentiation in the increasingly commoditized field of large language models (LLMs). It argues that technology alone is not a sustainable competitive advantage in AI products, as most companies have access to similar models and technical advancements are quickly replicated. Instead, the application layer, where companies identify and address genuine user problems, is the key differentiator. Experimentation with product design and addressing user needs are crucial for innovation and standing out in the market.

The article uses TikTok as an example of product ingenuity. While TikTok's success is often attributed to its algorithm, the article argues that its novel packaging of the algorithm and its user-friendly creator tools were equally important. TikTok's endless stream format and emphasis on short-form video allowed it to quickly learn user preferences and feed data into its algorithm. The competition for short-form videos is now about the ecosystem each app offers, including a loyal user base, creator revenue share, and content moderation.

Key takeaways:

Large language models (LLMs) are becoming a commodity and the application layer is the true differentiator for AI products.
Experimenting with products and design is a crucial, yet often overlooked, path to innovation.
TikTok's success is not solely due to its algorithm, but also its novel product design and best-in-class creator tools.
For short-form video platforms, having an engaging algorithm is just the beginning; a loyal user base, creator revenue share, content moderation, and other features are necessary to stand out.

Analytics can solve generative AI apps’ product problem | TechCrunch

Key takeaways:

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