THE AI REPLACES SERVICES MYTH

Summary from the TLDR Web Dev newsletter

The idea of AI replacing services and expanding the tech market by 100-200x is a myth driven by VCs' need for a new investment narrative. Customers view AI as software, expecting predictable costs and prices lower than human salaries, which limits the potential revenue capture. The author's own experience with pricing AI software supports this, as customers readily adopted fixed, low-cost pricing but balked at pricing that reflected the value of replacing a human employee.