Intial Post from Linkedin:
https://www.linkedin.com/posts/lukenorris_5ir-trillioninferences-enterprisegenai-activity-7254823880337338368-ceEb?utm_source=share&utm_medium=member_desktop
I posted recently that In just two years, the cost of running advanced AI models like GPT-4 has dropped by an astonishing 240x. This decrease I compare to the cost of air, yes clean air costs but its relatively zero at the unit (breath) level and thus knowledge is being lowered to near zero at the unit level.
Yet, instead of reducing spending, this cost decline is leading to Jevons Paradox—where greater efficiency drives higher overall consumption.
The Jevons paradox can be explained by the concept of rebound effects. When a resource becomes more affordable due to increased efficiency, it becomes more attractive for consumers and industries to use. This increased affordability leads to higher consumption.
As AI becomes more affordable, enterprises aren’t just automating tasks but pushing AI to achieve superhuman capabilities that redefine what’s possible.
1. Hyper-Contextual Decision-Making
Falling costs are enabling AI systems to process vast amounts of data—customer feedback, global trends, internal reports—creating real-time insights. Imagine a retailer dynamically adjusting strategies across thousands of stores based on constantly evolving market signals. This is more than automation; it’s superhuman decision-making that adapts on the fly.
2. The Autonomous Enterprise
AI isn’t just assisting workers anymore—it’s running entire operations. Think of AI-driven supply chains that autonomously optimize routes, inventory, and sourcing in milliseconds based on real-time data. This shift creates a new autonomous business model that far exceeds traditional human-managed processes.
As AI gets cheaper, companies won’t cut back on spending—they’ll expand their AI usage to unlock what was once impossible. Those who capitalize on these superhuman capabilities will redefine industries. For C-level leaders, the future isn’t about cost-cutting—it’s about embracing a new era of innovation.