Platforms, AI, and the Economics of BigTech β’ 9 implied HN points β’ 08 Dec 24
- When companies see big productivity gains, it could mean they're losing their competitive edge in the long run. This happens because the benefits aren't always kept by the business, similar to how new technology can hurt original owners.
- It's important to figure out where productivity gains are coming from. If they're from the main product, the company might end up losing control and value, especially if they rely on outside suppliers.
- To stay ahead, businesses should focus on creating unique advantages with technology rather than just using it to improve what they already do. This way, they can keep more control over pricing and profits.