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by jameshart
837 days ago
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‘Advertising’ is the business of persuading decision makers to prefer your product over a competitor. That business isn’t going to go away. If humans outsource their decisionmaking to AI by asking the AI to recommend them a product, then advertising will just have to shift its attention from persuading humans (by interrupting their TikTok dance videos with product pitches) over to persuading AIs that they are the best thing to recommend. The SEO industry was already theoretically predicated on convincing an algorithm to rank you above competitors - but then it was undermined by the perverse incentives that providing ad inventory is itself a lucrative proposition and content farms are able to compete for the algorithm’s favor as well, meaning actual product providers are having to buy advertising space at auction that will actually be purchased from the sites with the best SEO for what the advertisers sell. AI is definitely going to disrupt all of that equilibrium, but it’s not going to get rid of advertising. It might eliminate some of the rent seekers who are taking a cut of the ‘product and service discovery’ pie, but it’s going to enable some new rent seekers to move in. |
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No doubt you're correct but users who've control of AI at their viewing end will for the first time be able to control whether they watch ads or not.