Outcomemaxxing is where the enduring value lies. When you charge on outcomes, your incentive is to get the job done: complete the mortgage application, retain the subscriber, process the insurance claim, increase the basket size.
The cost of raw intelligence is going to fall. That's the clearest trend in technology right now. Software priced on top of that compute will compress with it. What doesn't compress is outcomes: a customer who did not churn, a home sold, an insurance claim processed has the same value, irrespective of what the model costs. Customers aren’t beholden to your gross margin — you’re beholden to their future. https://t.co/Y3L5Q4hDZu
I am excited to have a discussion with @djrosent and @gilbert from @AcquiredFM (my favorite podcast by a mile) in NYC on June 24. You can register to attend in person at the link below.
We're discussing "The AI Paradox" - all the apparent contradictions of AI (If AI is displacing jobs, why are there more job postings for software engineers today than there were a few years ago? If AI is deflationary, when will see lower prices? If AI is destroying the software industry, why are some younger applied AI companies growing so quickly?). David and Ben are the smartest and most well researched interviewers on the planet, and I'm really looking forward to our discussion.
https://t.co/Kuad1ek1CA
.@gofundme replaced the blank page with a conversation. For people in crisis, that difference is worth $125M in additional help raised.
Read more: https://t.co/KEOD3HlL2c
Something we're excited about:
June 24 · NYC · @btaylor + the hosts of @acquiredfm
The AI Paradox — what's real, what's hype, where we’re headed.
5:30pm, New York. Space is limited. Reserve your spot here: https://t.co/zUXvyUcIOv
Sierra just hit $200M in ARR. It took seven quarters to get to $100M, and only two more quarters to add our next $100M. Proud of the team and very grateful to our customers and partners.
I've been working on localization over the past few months at Sierra. Having also worked on this at Slack about 10 years ago, this experience gave me a very real comparison of software development before/after AI.
I wrote more about the experience here:
https://t.co/4q8VWR9BJV
.@airtable's AI agent doesn't send customers to help center articles. It actually resolves issues.
Their AI agent with Sierrra:
→ 80% AI resolution rate
→ ~95 agents worth of capacity
→ Chat live in 4 weeks
Here’s the story: https://t.co/HqgPHfVYin
Applied AI is about jobs to be done, not tokens to be consumed. Token usage may be a reasonable short-term proxy for adoption. But long term, success comes from outcomemaxxing, not tokenmaxxing.
It's why we took an early bet on outcomes-based pricing: pay for the value delivered. A mortgage completed, an order returned, a customer saved, a claim settled, a basket size increased.
The future of applied AI won’t be measured by consumption, but by outcomes achieved.
CNN: @btaylor sat down with @Rivian CEO @RJScaringe for a wide-ranging conversation on entrepreneurship, resilience and curiosity, and where AI and the physical world will soon collide.
Watch via @CNN: https://t.co/i9WE6IxGNc