It will probably be digital marketing where AI will affect GDP first.

Why? B2C is great, B2B is even greater. A2A is limitless.

As steam engines took over from humans and horses, they were better, especially in digging, building, or pulling trains. As long as the marginal rate of investing in machines paid off, companies still employed people.

Machines were so good at scale. The marginal rate decision on employees or machinery did not matter anymore. It became a no-brainer to buy a Caterpillar. It is not the complete picture, you spend on humans that engineer, assemble, and test the machines. Simplicity matters. The machines became more expensive and more complicated. They could push the limits as long as they stay cheaper than shovels.

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Copyright© Miklos Szegedi, 2023.

Sales and marketing are similar. I was lucky to receive a ticket to Dreamforce last week. I saw how big a business is sales in manpower and the system that supports it.

Marketing is still a hit. The global digital marketing industry is projected to grow closing up to $700B by 2028.

AI is not so powerful in taste, but it is very good in pricing. Taste is still our business, as AI has no demand and we are so unique individually with unique DNAs. Granular pricing and communication are way more complicated and a less rewarding job for people with high fixed costs. Fine tuned pricing will probably be a hit with AI as it already is at Uber, Amazon, Nasdaq, etc.

Why is that? Population is stable and people have limited time. You must spend more to attract new customers than to keep them. AI has infinite time, as it is way more elastic than human time. You need to attract people with TikTok videos or blockbuster movies, and we may not buy still. AI is different, it has no commitments, but sales.

An industry of $700B is usually scattered like a farmers market. You come, you buy, you sell, if you do not, then you sell something else next time. If you come with a common product with a small bag, you will definitely get a share in a farmers market. If you scale up and differentiate, you may become a monopoly in a narrow market.

This means that rational digital marketing agencies will target the fourth and fifth bidders who lose out on ROI at Google, Facebook, or TikTok. AI that improves ROI eliminating manual work is going to be a hit in this market. AI that carves out gold from mail dump will be valued as jewelry for ROI miners.

$700B is a significant market, even 0.01% of it is $70M calculating with ten thousand competitors. This scale is difficult to reach with all human labor. A2A business is the only one that can make this possible. Watch companies like openai.com or you.com, a search engine.

References:

https://finance.yahoo.com/news/global-digital-marketing-market-analysis-153000350.html

https://www.salesforce.com/dreamforce/

A2A stands for AI to AI.

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