PodcastsThe Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch20VC Roundtable: Spotify, Adobe & Linkedin CPOs on How AI Changes The Future of Product, Why AI is Now the Product, How TikTok Changed Product, Why Cost is the Biggest Barrier to LLM Usage & Why Incumbents Can Adopt AI Faster Than Any Prior Innovation Cyc

20VC Roundtable: Spotify, Adobe & Linkedin CPOs on How AI Changes The Future of Product, Why AI is Now the Product, How TikTok Changed Product, Why Cost is the Biggest Barrier to LLM Usage & Why Incumbents Can Adopt AI Faster Than Any Prior Innovation Cyc
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The PitchTue Dec 19 2023
AI as the Product:
- AI is now considered the product, with UI serving to support AI.
- The importance of UI has shifted with the rise of AI, exemplified by platforms like TikTok which have redefined product paradigms.
Models vs. Data:
- Both model size and data volume are crucial factors in leveraging AI effectively.
- Companies utilizing multiple models concurrently present a significant opportunity for startups.
- The decision-making framework regarding whether to utilize proprietary models or leverage existing ones is critical and influences data acquisition, collection, and cleaning approaches.
Impact on Workforce:
- In an AI-first world, control over user experience becomes less deterministic due to AI's influence, necessitating a shift in mindset for product leaders and teams.
- Designers must understand advanced models such as GPT-4 at a deep level and be adept at crafting prompts that complement AI capabilities.
- Empowering designers to explore interfaces directly impacts design-driven innovation within companies.
Cost Efficiency and Implementation:
- Cost efficiency is paramount in integrating multiple models into product development processes.
- Routing innovation will play a critical role in optimizing cost centers and resource efficiencies for deploying multiple models simultaneously.
Model Selection Challenges:
- Implementing fine-tuning efforts under the hood remains challenging but essential to ensure customer satisfaction.
- A key difficulty lies in retooling companies to align with an AI-centric approach, necessitating a shift in mindset and education about realistic technology capabilities.
Data Importance:
- While large model sizes remain important presently, high-quality user data is projected to gain prominence in the long term for effective interaction with AI models.
AI as the Product:
- Spotify uses its own models and also partners with others, highlighting the importance of user data in creating proprietary understanding.
- OpenAI's goal is AGI, which differs from companies like Spotify that optimize for delivering content to users and cost efficiency.
Building Models:
- Companies should build their own models if they are best positioned to do so, leveraging expertise and customer understanding.
- Collaboration with other model builders can complement a company's strengths and enhance capabilities.
Data Acquisition and Quality:
- Data collection and quality are crucial for AI, forming the foundation that brings AI algorithms to life.
- The focus on high-quality data is essential for algorithmic success while respecting user-generated content rights.
Business Model Transformation:
- The business model landscape will shift due to AI advancements, challenging traditional pricing structures such as hourly rates or seat-based models.
- Organizations must adapt their business models to reflect the increased efficiency brought by AI technologies.
Enterprise Adoption of AI:
- Enterprise adoption of AI technology is still at an early stage but may progress rapidly compared to past technology shifts.
- Collaborative partnerships with early customers aid utility development before broader implementation within organizations.
Adapting Careers for Change:
- Job roles are evolving rapidly due to AI, requiring individuals to embrace a growth mindset and continuously update skill sets.
- Embracing new tools personally allows individuals to pioneer new practices within their teams or organizations.
AI as the Product:
- Gustav emphasizes that AI is now the product, shifting the importance of UI with the rise of AI.
- TikTok's impact on the product paradigm in recent years has been significant, reflecting shifts in consumer behavior.
Importance of Training in AI for Product Leaders:
- Tomer highlights the necessity for product leaders to have a deep understanding of AI, even if not directly working on the model.
- He stresses comprehending objectives, underlying principles, responsible data collection, and velocity of learning in an AI-first world.
Excitement about AI's Impact:
- Gustav expresses excitement about potential business model challenges and changes driven by AI.
- He anticipates similar levels of excitement experienced during mobile's shift and foresees significant transformations ahead.