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AI agents are starting to eat SaaS

martinalderson.com

51–60 of 398 posts

Re: AI agents are starting to eat SaaS

#52

Earlier quoted context omitted.

Right, so totally cool to ignore the law but our TOS is a binding contract.

Where are they ignoring the law?

people that say this tend to have a misinterpretation of copyright, and use all the court cases brought by large rights holders as validation

despite all 3 branches of the government disagreeing with them over and over again

Re: AI agents are starting to eat SaaS

#53

Earlier quoted context omitted.

Using an LLM on data does not ingest that data into the training corpus. LLMs don’t “learn” from the information they operate on, contrary to what a lot of people assume. None of the mainstream paid services ingest operating data into their training sets. You will find a lot of conspiracy theories claiming that companies are saying one thing but secretly stealing your data, of course.

If they weren't, then why would enterprise level subscriptions include specific terms stating that they don't train on user provided data? There's no reason to believe that they don't, and if they don't now then there's no reason to believe that they won't later whenever it suits them.

[deleted]

Re: AI agents are starting to eat SaaS

#55
post #9

Earlier this year I thought that rare proprietary knowledge and IP was a safe haven from AI, since LLMs can only scrub public data. Then it dawned on me how many companies are deeply integrating Copilot into their everyday workflows. It's the perfect Trojan Horse.

Even if they're were doing this (I highly doubt it) so much would be lost to distillation I'm not convinced there would be much that actually got in, apart from perhaps internal codenames or whatever which will be obvious.

Re: AI agents are starting to eat SaaS

#56
post #9

Earlier this year I thought that rare proprietary knowledge and IP was a safe haven from AI, since LLMs can only scrub public data. Then it dawned on me how many companies are deeply integrating Copilot into their everyday workflows. It's the perfect Trojan Horse.

Using an LLM on data does not ingest that data into the training corpus. LLMs don’t “learn” from the information they operate on, contrary to what a lot of people assume. None of the mainstream paid services ingest operating data into their training sets. You will find a lot of conspiracy theories claiming that companies are saying one thing but secretly stealing your data, of course.

maybe prompts are enough to infer the rest ?

Re: AI agents are starting to eat SaaS

#57
post #9

Earlier this year I thought that rare proprietary knowledge and IP was a safe haven from AI, since LLMs can only scrub public data. Then it dawned on me how many companies are deeply integrating Copilot into their everyday workflows. It's the perfect Trojan Horse.

Using an LLM on data does not ingest that data into the training corpus. LLMs don’t “learn” from the information they operate on, contrary to what a lot of people assume. None of the mainstream paid services ingest operating data into their training sets. You will find a lot of conspiracy theories claiming that companies are saying one thing but secretly stealing your data, of course.

Just read the ToS of the LLM products please

Re: AI agents are starting to eat SaaS

#58

I’m currently working on an in house ERP and inventory system for a specific kind of business. With very few people you can now instead of paying loads of money for some off the shelf solution to your software needs get something completely bespoke to your business. I think AI enables the age of boutique software that works fantastically for businesses, agencies will need to dramatically reduce their price to compete…

This is only true if you assume that you are producing the same amount of code as today. Though, AI ultimately will produce more code which will require higher maintenance. Your internal team will need to scale up due to the the amount of code they need to maintain. Your security team will have more work to do as well because they will need to review more code which will require scaling that team as well. Your infrastructure costs will start adding up and if you have any DevOps they will need scaling too.

Soon or later the CTO will be dictating which projects can be vibe coded which ones make sense to buy.

SaaS benefits from network effects - your internal tools don't. So overall SaaS is cheaper.

The reality is that software license costs is a tiny fraction of total business costs. Most of it is salaries. The situation you are describing the kind of dead spiral many companies will get into and that will be their downfall not salvation.

Re: AI agents are starting to eat SaaS

#60

Earlier quoted context omitted.

Using an LLM on data does not ingest that data into the training corpus. LLMs don’t “learn” from the information they operate on, contrary to what a lot of people assume. None of the mainstream paid services ingest operating data into their training sets. You will find a lot of conspiracy theories claiming that companies are saying one thing but secretly stealing your data, of course.

Just read the ToS of the LLM products please

This is so naive. The ToS permits paraphrasing of user conversations, by not excluding it, and then training on THAT. You’d never be able to definitively connected paraphrased data to yours, especially if they only train on paraphrased data that covers frequent, as opposed to rare, topics.
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