#26 Angelinvesting.it - From idea to Series A - Weekly Newsletter

AI - It's all happening.

3 Minutes to reflect

The major legacy of the Industrial Revolution is the discovery that prosperity can be spread through economies of scale achieved by standardization. Producing in batches, organizing assembly lines—this is the path to profit, and it cannot be denied that it has worked.

We are not in Henry Ford's time anymore, when he said, "You can have any color car you want as long as it's black," but if we look around, the houses we live in, the cars we drive, and the school cycles our children attend are very similar.

In addition to prosperity, the industrial revolution has brought a great sense of confusion to the minds of Western consumers. There is an underlying unresolved philosophical hypocrisy in the model.

At the center of modern thought is the individual, their desires, their uniqueness. "You are unique, you are special, you are valuable, you deserve it." Your mother tells you this, they tell you this at school, society tells you this. TV advertisements repeat it to you.

The individualism at the core of modern capitalism clashes with the need to standardize products and services to achieve economies of scale. In one way or another, every businessperson of the last century has worked on this problem: making money by making the customer feel special despite selling the same product or service at its core.

The AI revolution breaks the bond between standardization and economies of scale. With AI, it will be possible to achieve hyper-personalization and economies of scale a the same time. This is the turning point. The beginning of a new era.

2 Resources to pro level

Deloitte attempts to explain in this 37-page document how CMOs can embrace the era of Hyper Personalization fueled by AI. In my opinion, the document is worth a quick read due to its effort; it is the best one I have found so far. However, it falls short of delving deeper into what lies ahead, merely scratching the surface of the possibilities and challenges that await.

A world where algorithms speak directly to you, understand your uniqueness, and make you feel special, and they do it for everyone. Not even Orwell could have imagined so much. 😱

And then there's Facebook (call it Meta if you want), which has just announced three tools for advertisers fueled by AI. We are heading towards a world where the ads I see will be different from the ones you or anyone else sees in their feed. The graphics and copies will be created on the spot to grab my attention. A/B testing of creatives will be done continuously, like the TikTok algorithm, where each iteration becomes an input for the machines to understand the user a little more and improve autonomously.

1 Reason to be happy

Perhaps you recognized the cover image. "Almost Famous," a beautiful film about rock. A pleasant story to watch or rewatch. An idea for your weekend!

Have a great weekend,

Simone

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