Generative AI hype: some thoughts

The sudden surge in "generative AI" startups and projects feels like the inverse of the recent "web3" boom. Both came from hyped-up pots. But while web3 hyped idealistic tech and an easy way to make money, generative AI hypes unsettling tech and questions whether it can be used to make money.

Web3 is technology looking for problems to solve, while generative AI is technology creating almost too many solutions. Web3 has been evangelists trying to solve old problems with new technology. As Generative AI evolves, users are resolving old problems in stunning new ways.

It's a jab at web3, but it's true. Web3's hype, including crypto, was unhealthy. Always expected a tech crash and shakeout. Tech that won't look like "web3" but will enhance "web2"

But that doesn't mean AI hype is healthy. There'll be plenty of bullshit here, too. As moths to a flame, hype attracts charlatans. Again, the difference is the different starting point. People want to use it. Try it.

With the beta launch of Dall-E 2 earlier this year, a new class of consumer product took off. Midjourney followed suit (despite having to jump through the Discord server hoops). Twelve more generative art projects. Lensa, Prisma Labs' generative AI self-portrait project, may have topped the hype (a startup which has actually been going after this general space for quite a while). This week, ChatGPT went off-topic.

This has a "fake-it-till-you-make-it" vibe. We give these projects too much credit because they create easy illusions. This also unlocks new forms of creativity. And faith in new possibilities.

As a user, it's thrilling. We're just getting started. These projects are not only fun to play with, but each week brings a new breakthrough. As an investor, it's all happening so fast, with so much hype (and ethical and societal questions), that no one knows how it will turn out. Web3's demand won't be the issue. Too much demand may cause servers to melt down, sending costs soaring. Companies will try to mix rapidly evolving tech to meet user demand and create businesses. Frustratingly difficult.

Anyway, I wanted an excuse to post some Lensa selfies.

These are really weird. I recognize them as me or a version of me, but I have no memory of them being taken. It's surreal, out-of-body. Uncanny Valley.

Is iPhone's Dynamic Island invention or a marketing ploy?

First of all, why the notch?

When Apple debuted the iPhone X with the notch, some were surprised, confused, and amused by the goof. Let the Brits keep the new meaning of top-notch.

Apple removed the bottom home button to enhance screen space. The tides couldn't overtake part of the top. This section contained sensors, a speaker, a microphone, and cameras for facial recognition. A town resisted Apple's new iPhone design.

From iPhone X to 13, the notch has gotten smaller. We expected this as technology and engineering progressed, but we hated the notch. Apple approved. They attached it to their other gadgets.

Apple accepted, owned, and ran with the iPhone notch, it has become iconic (or infamous); and that’s intentional.

The Island Where Apple Is

Apple needs to separate itself, but they know how to do it well. The iPhone 14 Pro finally has us oohing and aahing. Life-changing, not just higher pixel density or longer battery.

Dynamic Island turned a visual differentiation into great usefulness, which may not be life-changing. Apple always welcomes the controversy, whether it's $700 for iMac wheels, no charging block with a new phone, or removing the headphone jack.

Apple knows its customers will be loyal, even if they're irritated. Their odd design choices often cause controversy. It's calculated that people blog, review, and criticize Apple's products. We accept what works for them.

While the competition zigs, Apple zags. Sometimes they zag too hard and smash into a wall, but we talk about it anyways, and that’s great publicity for them.

Getting Dependent on the drug

The notch became a crop. Dynamic Island's design is helpful, intuitive, elegant, and useful. It increases iPhone usability, productivity (slightly), and joy. No longer unsightly.

The medication helps with multitasking. It's a compact version of the iPhone's Live Activities lock screen function. Dynamic Island enhances apps and activities with visual effects and animations whether you engage with it or not. As you use the pill, its usefulness lessens. It lowers user notifications and consolidates them with live and permanent feeds, delivering quick app statuses. It uses the black pixels on the iPhone 14's display, which looked like a poor haircut.

The pill may be a gimmick to entice customers to use more Apple products and services. Apps may promote to their users like a live billboard.

Be prepared to get a huge dose of Dynamic Island’s “pill” like you never had before with the notch. It might become so satisfying and addicting to use, that every interaction with it will become habit-forming, and you’re going to forget that it ever existed.

WARNING: A Few Potential Side Effects

Vision blurred Dynamic Island's proximity to the front-facing camera may leave behind grease that blurs photos. Before taking a selfie, wipe the camera clean.

Strained thumb To fully use Dynamic Island, extend your thumb's reach 6.7 inches beyond your typical, comfortable range.

Happiness, contentment The Dynamic Island may enhance Endorphins and Dopamine. Multitasking, interactions, animations, and haptic feedback make you want to use this function again and again.

Motion-sickness Dynamic Island's motions and effects may make some people dizzy. If you can disable animations, you can avoid motion sickness.

I'm not a doctor, therefore they aren't established adverse effects.

Does Dynamic Island Include Multiple Tasks?

Dynamic Islands is a placebo for multitasking. Apple might have compromised on iPhone multitasking. It won't make you super productive, but it's a step up.

iPhone is primarily for personal use, like watching videos, messaging friends, sending money to friends, calling friends about the money you were supposed to send them, taking 50 photos of the same leaf, investing in crypto, driving for Uber because you lost all your money investing in crypto, listening to music and hailing an Uber from a deserted crop field because while you were driving for Uber your passenger stole your car and left you stranded, so you used Apple’s new SOS satellite feature to message your friend, who still didn’t receive their money, to hail you an Uber; now you owe them more money… karma?

We won't be watching videos on iPhones while perusing 10,000-row spreadsheets anytime soon. True multitasking and productivity aren't priorities for Apple's iPhone. Apple doesn't to preserve the iPhone's experience. Like why there's no iPad calculator. Apple doesn't want iPad users to do math, but isn't essential for productivity?

Digressing.

Apple will block certain functions so you must buy and use their gadgets and services, immersing yourself in their ecosystem and dictating how to use their goods.

Dynamic Island is a poor man’s multi-task for iPhone, and that’s fine it works for most iPhone users. For substantial productivity Apple prefers you to get an iPad or a MacBook. That’s part of the reason for restrictive features on certain Apple devices, but sometimes it’s based on principles to preserve the integrity of the product, according to Apple’s definition.

Is Apple using deception?

Dynamic Island may be distracting you from a design decision. The answer is kind of. Elegant distraction

When you pull down a smartphone webpage to refresh it or minimize an app, you get seamless animations. It's not simply because it appears better; it's due to iPhone and smartphone processing speeds. Such limits reduce the system's response to your activity, slowing the experience. Designers and developers use animations and effects to distract us from the time lag (most of the time) and sometimes because it looks cooler and smoother.

Dynamic Island makes apps more useable and interactive. It shows system states visually. Turn signal audio and visual cues, voice assistance, physical and digital haptic feedbacks, heads-up displays, fuel and battery level gauges, and gear shift indicators helped us overcome vehicle design problems.

Dynamic Island is a wonderfully delightful (and temporary) solution to a design “problem” until Apple or other companies can figure out a way to sink the cameras under the smartphone screen.

Apple Has Returned to Being an Innovative & Exciting Company

Now Apple's products are exciting. Next, bring back real Apple events, not pre-recorded demos.

Dynamic Island integrates hardware and software. What will this new tech do? How would this affect device use? Or is it just hype?

Dynamic Island may be an insignificant improvement to the iPhone, but it sure is promising for the future of bridging the human and computer interaction gap.

Great News about the new Google Business Intelligence Solution

Google has renamed Data Studio to Looker Studio and Looker Studio Pro.

Now, Google releases Looker Studio Pro. Similar to the move from Data Studio to Looker Studio, Looker Studio Pro is basically what Looker was previously, but both solutions will merge. Google says the Pro edition will acquire new enterprise management features, team collaboration capabilities, and SLAs.

In addition to Google's announcements and sales methods, additional features include:

Looker Studio assets can now have organizational ownership. Customers can link Looker Studio to a Google Cloud project and migrate existing assets once. This provides:

• Your users' created Looker Studio assets are all kept in a Google Cloud project.

• When the users who own assets leave your organization, the assets won't be removed.

• Using IAM, you may provide each Looker Studio asset in your company project-level permissions.

• Other Cloud services can access Looker Studio assets that are owned by a Google Cloud project.

Looker Studio Pro clients may now manage report and data source access at scale using team workspaces.

Google announcing these features for the pro version is fascinating. Both products will likely converge, but Google may only release many features in the premium version in the future. Microsoft with Power BI and its free and premium variants already achieves this.

Sources and Further Readings

Google, Release Notes (2022)

Google, Looker (2022)

How I monetized and sold an abandoned side project for $20,000

The Origin Story

I've always wanted to be an entrepreneur but never succeeded. I often had business ideas, made a landing page, and told my buddies. Never got customers.

In April 2021, I decided to try again with a new strategy. I noticed that I had trouble acquiring an initial set of customers, so I wanted to start by acquiring a product that had a small user base that I could grow.

I found a SaaS marketplace called MicroAcquire.com where you could buy and sell SaaS products. I liked Shareit.video, an online Loom-like screen recorder.

Shareit.video didn't generate revenue, but 50 people visited daily to record screencasts.

Purchasing a Failed Side Project

I eventually bought Shareit.video for $12,000 from its owner.

$12,000 was probably too much for a website without revenue or registered users.

I thought time was most important. I could have recreated the website, but it would take months. $12,000 would give me an organized code base and a working product with a few users to monetize.

I considered buying a screen recording website and trying to grow it versus buying a new car or investing in crypto with the $12K.

Buying the website would make me a real entrepreneur, which I wanted more than anything.

Putting down so much money would force me to commit to the project and prevent me from quitting too soon.

A Year of Development

I rebranded the website to be called RecordJoy and worked on it with my cousin for about a year. Within a year, we made $5000 and had 3000 users.

We spent $3500 on ads, hosting, and software to run the business.

AppSumo promoted our $120 Life Time Deal in exchange for 30% of the revenue.

We put RecordJoy on maintenance mode after 6 months because we couldn't find a scalable user acquisition channel.

We improved SEO and redesigned our landing page, but nothing worked.

Despite not being able to grow RecordJoy any further, I had already learned so much from working on the project so I was fine with putting it on maintenance mode. RecordJoy still made $500 a month, which was great lunch money.

Getting Taken Over

One of our customers emailed me asking for some feature requests and I replied that we weren’t going to add any more features in the near future. They asked if we'd sell.

We got on a call with the customer and I asked if he would be interested in buying RecordJoy for 15k. The customer wanted around $8k but would consider it.

Since we were negotiating with one buyer, we put RecordJoy on MicroAcquire to see if there were other offers.

We quickly received 10+ offers. We got 18.5k. There was also about $1000 in AppSumo that we could not withdraw, so we agreed to transfer that over for $600 since about 40% of our sales on AppSumo usually end up being refunded.

Lessons Learned

First, create an acquisition channel

We couldn't discover a scalable acquisition route for RecordJoy. If I had to start another project, I'd develop a robust acquisition channel first. It might be LinkedIn, Medium, or YouTube.

Purchase Power of the Buyer Affects Acquisition Price

Some of the buyers we spoke to were individuals looking to buy side projects, as well as companies looking to launch a new product category. Individual buyers had less budgets than organizations.

Customers of AppSumo vary.

AppSumo customers value lifetime deals and low prices, which may not be a good way to build a business with recurring revenue. Designed for AppSumo users, your product may not connect with other users.

Try to increase acquisition trust

Acquisition often fails. The buyer can go cold feet, cease communicating, or run away with your stuff. Trusting the buyer ensures a smooth asset exchange. First acquisition meeting was unpleasant and price negotiation was tight. In later meetings, we spent the first few minutes trying to get to know the buyer’s motivations and background before jumping into the negotiation, which helped build trust.

Operating expenses can reduce your earnings.

Monitor operating costs. We were really happy when we withdrew the $5000 we made from AppSumo and Stripe until we realized that we had spent $3500 in operating fees. Spend money on software and consultants to help you understand what to build.

Don't overspend on advertising

We invested $1500 on Google Ads but made little money. For a side project, it’s better to focus on organic traffic from SEO rather than paid ads unless you know your ads are going to have a positive ROI.