OpenAI is Building “Her” and Big Tech Is Still Defending SaaS Canned Reports

🌈 Abstract

The article discusses the author's perspective on the current state of GenAI (Generative AI) and its potential impact on the SaaS (Software as a Service) industry. The author, who was one of the inventors of the Automated Insights platform, the first commercially available GenAI engine, shares his insights on the evolution of SaaS and how GenAI represents a significant shift in the interpretation of input and output, potentially disrupting the current SaaS landscape.

🙋 Q&A

[01] The author's perspective on the current state of GenAI

1. What is the author's view on the current version of GenAI?

• The author does not have a great love for the current version of GenAI, but believes that the motive behind the technology remains the same as when it was first introduced over a decade ago.

2. What does the author say about the potential impact of GenAI on the current SaaS model?

• The author believes that the reason corporations and investors are heavily investing in anything with the words "artificial" or "intelligence" is because GenAI represents a potential shift that could completely change the interpretation of input and output, potentially eliminating the need for screens altogether.

3. How does the author describe the evolution of SaaS and its relationship to GenAI?

• The author argues that the evolution of SaaS, from desktop software to mobile-first, has been driven by users' willingness to trade off certain functionality and processing speed for the convenience of cloud-based, subscription-based software. He believes that GenAI represents the next step in this evolution, potentially eliminating the need for screens and exposing SaaS as a "clunky middleman" between users and their data.

[02] The author's perspective on the threat of GenAI to the current SaaS industry

1. How does the author compare the threat of GenAI to the SaaS industry to the threat of electric vehicles to the ICE (Internal Combustion Engine) vehicle industry?

• The author argues that making the case that GenAI is not a threat to the current SaaS software empire is akin to making the case that electric vehicles are not a threat to the ICE vehicle industry, just because they both have four wheels and an engine. He points out that major automakers have responded to the threat of electric vehicles by eliminating production of their ICE sedans.

2. What does the author mean by the "interpretation layer" and why does he consider it a threat to the current SaaS model?

• The author argues that the key threat of GenAI to the SaaS industry is not just about where the processing happens or how the software is paid for, but about who controls the input and output. He refers to this as the "interpretation layer" and believes that whoever can best interpret and simplify the question being asked and the answer being produced will have a significant advantage.

3. How does the author view the current state of GenAI in terms of its capabilities?

• The author believes that GenAI is still mostly "Gen" and not enough "AI". He argues that it is not about machines doing the work, but about machines interpreting the data required to do the work. He notes that GenAI can produce mostly random garbage when left in a vacuum, and even with the right prompt, it can sometimes hallucinate and misfire.