How AI and other new technologies will impact business models – Quibi vs TikTok

AI For Business


How AI and other new technologies will impact business models – Quibi vs TikTok

AI will transform the market and many new business models will emerge. Nothing more. New technologies will enable or eliminate business models. Let's look at how mobile internet and AI have impacted two companies.

Option A: We gave 10 talented film producers two years to create 200 short videos for a digital platform (like Quibi), which was a media company developing short-form videos optimized for smartphones.

Option B: It allows tens of thousands of amateur creators and uses AI to select the best videos every day and distribute them at scale on its platform (like TikTok).TikTok is a short-video sharing app and social networking platform.

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In 2000, option A would have been good business because the computing resources to run AI and crunch the numbers were not (generally) available for option B. But in the age of cloud computing and AI, option B is the winner. Option B increases the chances of a hit video, while option A is limited by the insight of just 10 people. On mobile, virality is key for short films.

TikTok's underlying model is awesome. Quibi went bankrupt despite being under the leadership of the legendary Jeffrey Katzenberg and former eBay CEO Meg Whitman. Folks, as I said in the Grand Playbook of Business, a business model is more important than the ability to execute.

Yes, in Igbo mythology, dreaming about fetching water is good because the path to the stream will never be covered with weeds and fetching water symbolizes vitality. But dreaming about collecting firewood is bad because if the firewood runs out, the weeds will take over the path. So it is better to fetch water than to collect firewood. Fetching water means that you have a future (the path will not be covered for weeks). Quibi is like going to collect firewood and TikTok is like going to the stream to fetch water.

In a constantly updating ocean of millions of new videos, AI will consistently discover and publish new viral videos, keeping the ecosystem healthy, unlike Quibi, which is frozen in space. My message is that technology will transform the market by improving business models.

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