Generative AI Markets

Markets are on the verge of exponentiality, and the driver will be generative AI, leading to what I’m calling Generative AI Markets.

We will see these markets form with new constraints and offer new outcomes.  Markets with mass memory capacities that also possess the ability to learn.  In addition, our current markets will continue to operate with greater precision and efficiency.

It’s going to be wild.  It’s going to be fast-moving.  And it will be bumpy…So here goes – let’s explore together what the world of Generative AI Markets might look like.

Types of Generative AI Markets

Short / Disposable:  This is where markets quickly form and unform.  These markets are powered by Generative AI, and they represent very short, limited auctions for your attention.

Think of it like this.  You are walking down a street, and your face is your ID.  It’s the real you walking down a real street.  A micro auction quickly forms.  Real-time bidding focused on connecting you with various offers; turn here for a burrito, or don’t forget to buy that special someone something special.  The market lasts as long as you walk.

It is all real.  And it is hyper contextualized to you.  And when your walk is over, the auction for your walk is disbanded.

Not every market will live at this speed.  And not every market needs to, but if the cost is near zero to create something like that, you can be sure there will be bidders, buyers, sellers and a market to support it.

Medium: Generative AI Markets are maintained, but they possess generative attributes.

Back to our same scenario.  You are still you.  You are still walking down the same street.  But a few things are fixed.  The environment doesn’t change.  Nor do the advertisers. Here again, we are auction-based, but in this scenario, the bidding is non-stop, bidding on EVERY person walking down EVERY street.  And also creating ad units on the fly, literally using generative advertising to address a generative market.

The street is the market.  And our ‘street’ market is fixed.  There are attributes associated with it that we build from and bid against.

Making real-time calculations to determine how much effort to drive towards every person.  Customization still has a cost, measured not in creative terms, but now measured in terms of computer resources. 

Long Term:  Generative AI Markets are continually shaped and reshaped, allowing for dynamic perspectives that are continually in generative mode.

This starts to get wild, but here we are talking about markets that are purposefully and continually forming based on observable reality.

These markets extend far beyond the street scenario and extend all the way into your home.  In addition, these markets are sending signals directly to the products you use, allowing your products to continually ‘evolve’ to meet your needs.  This type of long-term marketing might also be baked into your initial purchase price and be further monetized along the lifecycle journey of your relationship with your products, possibly monetized through a subscription or maybe through a data exchange (renting access to you…)

And yes, these markets move across multiple venues and even interact with other markets to bid individually, at group levels, or whatever other dynamics the market develops… which leads us to…

Novel: Novel, or entirely new, never-before-seen Generative AI Markets are certainly something we should contemplate.  Particularly as Generative AI continues to gain more ‘sentience’, eventually to the point where decisions are being made autonomously.  It is fair to say that if you buy into the premise of potential sentience, then by extension, these wild machines will cook up some new, never-before-seen markets.  Amazingly, we might not even know that it exists – Machine to Machine markets with zero human intervention.

Accelerated:  All we know about current-day markets, along with all of the above, all happening at an exponential rate.  This is the only piece that is real today : ).  On top of acceleration, we also see in this version of Generative AI Markets a degree of scale like never before;  customization and contextualize and in real-time.

Looking Forward – A Business Outlook Around Generative AI Markets

Business leaders should begin mapping where generative AI will reshape customer journeys and also create new, adaptive markets.  Marketers should be ready to lead in what is likely going to be a very unmoored space; perhaps the now is the time for marketers to form that Generative AI Market task force….  For product owners, perhaps the subject of another writing on Generative AI Products, and perhaps much of this will be directly tied to Generative Markets.

For business players of all stripes, start to consider how your current day market experience might be ripe for a rather rapid evolution; go find your moment to drive the curve instead of being dragged by it.  And perhaps to take the opportunity to approach this moment with a broad view that examines how your market will evolve, and how your entire organization (including the marketing department) will need to rise to meet the moment.

And yes, I’d be remiss if I also didn’t acknowledge the many concerns around privacy and ethics.  As a leader, you’ll need strong clarity on your ‘lines in the sand.’

I told you it would be bumpy.  And filled with wonderful surprises.

Images Generated using Canva’s AI Assistant