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AI: The ROI Runway Could Be Long Outside the Tech Sector

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Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#51

Microsoft, Amazon are all building forward deployment engineering teams - to increase AI adoption. It will take time, but it will happen.

Feels like a new consulting wave which is implementation-led by AI vendors taking a large share of the services layer. The existing consulting companies (big 4 etc) will have to shift to niche advisory or heavy channel partnerships with way fewer consultants.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#52
post #27

Earlier quoted context omitted.

I think a) the labs are releasing very fast and b) why would they implement the long tail of app features when they can effectively sell tokens to every user to write their own version of the app, which is what is currently happening?

Because, as the gp pointed out, if the cost is least to the labs, then why not reap the benefits too? Hypothetical. Assume you can in fact point agents at a tool and say "replicate it. Make no mistakes". You then have software being instantly copy-able. Assume these agents can then be pointed to a customer feedback board in perpetuity and they autonomously upgrade the software over time. They analyze usage patterns a…

There is more to selling software than writing it. You have market, support, and sell. Do you think their resources are well spent doing that across the gamut of software? Of course not; companies specialize.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#53

Microsoft, Amazon are all building forward deployment engineering teams - to increase AI adoption. It will take time, but it will happen.

This is more marketing hype than substance. Amazon isn’t “building” a team, it’s broadly just taking existing people and now calling them “forward deployment engineering teams.”

Also, adoption isn’t lacking because of lack of awareness. Adoption isn’t happening because the math doesn’t add up and the ROI isn’t there. Consulting pixie dust can’t fix that.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#54
post #16

> If token costs converge toward zero for most AI use cases... In the real world, token costs seem to be going up, as early stage pricing at a loss gives way to pricing that generates revenue. Compute costs might go down a little over the next five years, but there's nothing coming along in hardware that leads to huge reductions in price. NVidia says don't expect better price/performance before 2030. The models keep…

I've switched to non-SOTA models, which deliver comparable value at a fraction of the cost. A full day of coding with Deepseek is approx $1 in tokens, and at least for my use cases the quality is equivalent to Claude.

Hm. I must be holding it wrong. I hit $20 easily in 5 hours with deepseek in opencode.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#56

One thing I can't square: if the cost to build an application goes to zero, we should see a proliferation of apps, especially from the AI labs. The fact that we aren't seeing an app explosion (I think) is evidence that building applications people will pay for is significantly more complex than just prompting claude/codex/etc

I’ve seen a ton of new open source slop programs. Every day there’s so many “announcing my cool new app” posts. I don’t remember the rate being this high before.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#57

Earlier quoted context omitted.

I've switched to non-SOTA models, which deliver comparable value at a fraction of the cost. A full day of coding with Deepseek is approx $1 in tokens, and at least for my use cases the quality is equivalent to Claude.

Hm. I must be holding it wrong. I hit $20 easily in 5 hours with deepseek in opencode.

Same here - curious which deepseek model and what op was doing.

I suspect it might be a question of conversational loop vs agentic dev - the former uses much less tokens than letting an autonomous agent churn away on your codebase.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#58

One thing I can't square: if the cost to build an application goes to zero, we should see a proliferation of apps, especially from the AI labs. The fact that we aren't seeing an app explosion (I think) is evidence that building applications people will pay for is significantly more complex than just prompting claude/codex/etc

For a long time nobody knew how to monetize OSS outside of a few Linux vendors.

There's a crapload of new repos and Github and similar things. And a lot of it is "hobby utility" stuff like you'd find everywhere pre-mobile/pre-app-store but kinda dried up a bit with the browserfication+phone-ificiation of everything. Everything had to turn into an app + an online service.

Now, like OSS, freeware, and even most shareware in the 90s, most of these new projects have no path to VC-level interest.

The whole "basic business or business-process BUT ON THE INTERNET with a dash of social/web-2.0/personalization/crypto/fad-of-the-year" that recent VC firms have been pushing for the last 15+ years may be numbered.

But it's also unlikely that growing companies with big ambitions will want to base their business on vibe-coded free software for too long. It opens up too many unknowns/risks ("oh no, the disgruntled employee leveraged a misconfiguration in our in-house accounts payable system!") There will be a new middle ground model to be found.

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#59
post #53

Microsoft, Amazon are all building forward deployment engineering teams - to increase AI adoption. It will take time, but it will happen.

This is more marketing hype than substance. Amazon isn’t “building” a team, it’s broadly just taking existing people and now calling them “forward deployment engineering teams.” Also, adoption isn’t lacking because of lack of awareness. Adoption isn’t happening because the math doesn’t add up and the ROI isn’t there. Consulting pixie dust can’t fix that.

Ah man it’s gonna be hilarious when this comes crashing down -and it will. It’s pretty obvious ‘demand is infinite’ was always a lie - demand is infinite only when price approaches zero lol! Prices are going further away from zero not closer

Re: AI: The ROI Runway Could Be Long Outside the Tech Sector

#60

Earlier quoted context omitted.

I've switched to non-SOTA models, which deliver comparable value at a fraction of the cost. A full day of coding with Deepseek is approx $1 in tokens, and at least for my use cases the quality is equivalent to Claude.

Hm. I must be holding it wrong. I hit $20 easily in 5 hours with deepseek in opencode.

Do a through audit of every single token you're sending and receiving. Some harnesses include things you didn't expect.
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