AI vendors are using a large share of capital provided by PE firms and banks to subsidise their operating costs, much like street dealers hook their customers with the first fix.Telcos and energy companies regularly subsidise the cost of their products or services to attract new customers, but never to the point of incurring continuing losses. What AI vendors are doing is a whole new level of marketing incentivisation that exposes a flaw in the vendors’ strategy, which any experienced product marketer should be able to predict.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Artificial intelligence token bill shock has only just begun
Consumption costs versus changes passed onto customers is a significant problem for all vendors. At some point, each will have to pass on the full expense.
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