{"id":7112,"date":"2024-04-04T19:10:55","date_gmt":"2024-04-04T19:10:55","guid":{"rendered":"https:\/\/tup.kxe.temporary.site\/ai-powered-martech-releases-and-news-april-4\/"},"modified":"2024-04-04T19:10:55","modified_gmt":"2024-04-04T19:10:55","slug":"ai-powered-martech-releases-and-news-april-4","status":"publish","type":"post","link":"https:\/\/okdesign.ca\/en\/ai-powered-martech-releases-and-news-april-4\/","title":{"rendered":"AI-powered martech releases and news: April 4"},"content":{"rendered":"


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AI is a great deal for the companies that use it. The technology helps them save money via automation and increases efficiencies. However, what about the bottom lines of the companies that create it? Is it a money-losing proposition for them? While the jury is still out on that question, as my very inexpensive Magic 8 Ball likes to say: \u201cOutlook not so good.\u201d<\/p>\n

Consider OpenAI, which makes money through licensing its products and services, subscriptions, partnerships, collaborations and investments. It\u2019s in the most impressive startup mode ever seen with investors lining up to throw money at it. Given that its biggest partner is Microsoft there\u2019s little risk the cash will stop flowing.\u00a0<\/p>\n

In 2022, OpenAI had\u00a0 $544.5 million in expenses, according to Fortune. \u201c$416.45 million on computing and data, $89.31 million on staff and $38.75 million in unspecified other operating expenses.\u201d In 2023 it had at least $1 billion in revenues. Pretty good, right?<\/p>\n

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Unfortunately, there\u2019s no way in heck its expenses last year were anywhere near the 2022 levels. A user at LessWrong<\/a> has an incredibly detailed look at OpenAI\u2019s likely expenses. Their conclusion: \u201cOpenAI\u2019s prices seem too low to recoup even part of their capital costs in a reasonable time given the volatile nature of the AI industry. Surely I\u2019m missing something obvious?\u201d\u00a0<\/p>\n

I suspect they are not. Here\u2019s why.<\/p>\n

According to the Wall Street Journal, \u201cMore than 1.5 million people have used [Microsoft\u2019s GitHub Copilot[ and it is helping build nearly half of Copilot users\u2019 code \u2014 because it slashes the time and effort needed to program.\u201d<\/p>\n

However, it is so expensive to run that if subscriptions were priced to recoup costs users couldn\u2019t afford it. In the first months of 2023, Microsoft was losing between $20 and $80 a month per user, the WSJ reported.\u00a0<\/p>\n

My favorite quote from the article, \u201cMicrosoft, for example, is using OpenAI\u2019s latest software for its AI features. The version, called GPT-4, is among the largest and most costly AI models available. Using it to summarize an email is like getting a Lamborghini to deliver a pizza.\u201d<\/p>\n

So AI is an environmental worst-case scenario<\/a> and a money pit. That\u2019s not good. Eventually, these bills will have to be paid.<\/p>\n\n\n

And now, here\u2019s this week\u2019s AI-powered martech releases and features:<\/p>\n