AI costs plummet below wages worldwide as AI gains human-like capabilities

Hi Futurist,

If you thought the AI train took a break this summer, you’re mistaken. Everyone has now emerged from their vacation period, and this is evident from the developments over the past two weeks. Therefore, I am sending you insights, inspiration, and innovation straight to your inbox. Let’s dive into the depths of the digital future together and discover the waves of change shaping our industry.

💡 In this post, we're dipping in:

• 📣 Byte-Sized Breakthroughs: AI prices are dropping fast, opening doors to new possibilities. Klarna’s recent move shows that businesses are now ditching traditional tech for smarter, cheaper AI-driven solutions.

• 🎙️ MarTech Maestros: Learn the art of prompt engineering and how asking the right questions can unlock the full potential of AI. Dive into insights from top industry experts.

• 🧐 In Case You Missed It: From ChatGPT’s soaring user base to new AI-driven home robots, the latest tech updates you need to know to stay ahead.

Do you have tips, feedback or ideas? Or just want to give your opinion? Feel free to share it at the bottom of this dip. That's what I'm looking for.

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📣 Byte-Sized Breakthroughs

Quick highlights of the latest technological developments.

Headstory: AI costs plummet below wages worldwide as AI gains human-like capabilities

AI is no longer expensive. What once seemed out of reach for companies with tight budgets is now accessible to all. AI models, which once cost a fortune, are rapidly approaching near-zero costs. We’re witnessing a price collapse unlike anything we’ve seen before. In 2023 GPT-4 cost $36 per million tokens. Today? $4. That’s a staggering 90% drop. But it’s more than just a number. It’s a transformation that’s turning industries on their heads.

This is where it gets real. Klarna just said goodbye to Salesforce and Workday, replacing their entire tech stack with AI. Yes, AI is that powerful—not just for saving costs, but for boosting functionality too. Klarna’s leaner workforce, cheaper stack, and AI-driven solutions are a sign of what’s to come. And it’s not just Klarna. Businesses everywhere are starting to see the writing on the wall.

With OpenAI set to release Strawberry in the coming weeks, and GPT-4.5 on the horizon, businesses are on the brink of another leap. Businesses will soon have AI tools with almost human-like capabilities at a fraction of the price it would cost to hire a person to do the same job. We’re talking about running an AI agent for less than $1.50 per hour—assuming the AI tool uses 100 tokens per second—far below the minimum wage in most developed countries. The economics of AI are changing fast. Faster than anyone anticipated.

It’s time to ask the tough questions:

1. Are we ready for AI? – With costs dropping, businesses must assess whether they’re poised to take advantage of AI-driven solutions. Have you calculated the potential savings compared to traditional human-driven tasks?

2. Which parts of our operations could AI replace or enhance? – From customer service to marketing, the possibilities are endless. Leaders must break down workflows and pinpoint exactly where AI can make a difference.

3. How can we build our own AI tools? – As Klarna showed, it’s no longer necessary to rely on SaaS giants. The future belongs to those who build smarter, leaner AI-based systems. Are you taking advantage of the rapidly evolving capabilities of AI models, or are you relying on outdated technology that’s becoming too costly?

4. Is our workforce prepared? – As AI takes over more routine tasks, leaders must ask whether their teams are ready to shift towards more strategic, high-impact roles. How will you reallocate human talent when AI takes over the bulk of repetitive tasks?

Preparing your business means more than just buying AI tools off the shelf. It means embracing the shift, streamlining operations, and continually adapting to the rapid technological advancements. The future of business is automated, intelligent, and efficient. The choice is clear: embrace AI and position yourself for the future, or risk being left behind.

Building apps without coding is now a reality

TL;DR

Replit has released the Replit Agent, a powerful AI assistant for all Replit Core and Teams subscribers. The Agent can install packages, manage the command-line, deploy apps, and even optimize user interfaces using visual inputs. You can now build and deploy applications to the cloud in under six minutes, without needing to be a developer.

Read it yourself?

Sentiment

People are amazed by how good the Replit Agent is. The fact that anyone can build software now is a game-changer. You don’t have to be a developer to bring your app to life anymore—this is going to revolutionize how we think about app development and our interaction with software in general.

My thoughts

Software is eating the world, but AI is eating software. When everyone, regardless of their technical skills, can build what they have in mind, we are bound to see an explosion of apps created for specific, niche use cases. This marks the beginning of a new era where app development is no longer exclusive to coders.

AI at the heart of iPhone 16

TL;DR

Apple’s 2024 event revealed the iPhone 16, now powered by Apple Intelligence—a built-in AI system designed to improve your everyday experience. From enhancing Siri’s responsiveness to transforming how the camera and notifications work, the focus on AI integration is clear. However, Apple Intelligence won’t be available in Europe until 2025.

Read it yourself?

Sentiment

People are excited about how AI is taking a central role in Apple’s future, but there’s some disappointment in Europe, where Apple Intelligence won’t be available until next year. Meanwhile, users in other regions are looking forward to an iPhone that adapts and assists in new, meaningful ways.

My thoughts

Apple is showing the world how to build a phone centred around AI that actually makes life easier. From understanding less structured voice commands to making camera features more intuitive, Apple Intelligence seems to be designed to blend seamlessly into daily tasks. This feels like the next step in making smartphones not just smart, but truly helpful.

More byte-sized breakthroughs:

• A breakthrough in AI memory and capability
  Imagine feeding an AI enough text to fill 750 novels. That’s what Magic’s new 100M token model can handle, unlocking new potential for smart AI agents. With this kind of memory, autonomous agents can process more complex tasks, paving the way for smarter AI-driven applications. It’s a leap forward in making AI not just faster, but genuinely more useful in real-world scenarios.

• Adobe announces text-to-video generation with Firefly
  Video is king, and Adobe’s upcoming Firefly Video Model is set to change the game. Seamlessly integrated into Premiere Pro, this AI-driven tool will enable professionals to craft stunning videos with less effort. From filling gaps in timelines to generating new footage, the Firefly Model helps editors create magic faster than ever before. The model will be available in beta later this year.

• Mistral releases new open-source vision AI model
  European AI company Mistral has launched Pixtral 12B, a powerful vision multimodal model. With powerful capabilities in both text and image processing, Pixtral 12B opens up new possibilities for various applications. With its open-source release, developers now have full access to experiment and innovate with this state-of-the-art technology.
  

🎙️ MarTech Maestros

A must-see webinar, podcast, or article that’s too good to miss.

Mastering the art of prompt engineering

In the age of AI, success depends on more than just technology—it’s about asking the right questions. Prompt engineering is the key to unlocking AI’s full potential. This podcast delves into the evolving art of prompting, offering insights from Anthropic’s experts. Learn why those who ask AI the right questions will thrive, while those competing with the answers will be left behind.

🧐 In Case You Missed It

A roundup of recent key updates.

• OpenAI announced that ChatGPT now has over 200 million weekly active users, and that 92% of Fortune 500 companies use its products.

• OpenAI now has 1 million paying customers for its business version,
  including ChatGPT Team, Enterprise, and ChatGPT Edu for universities.

• OpenAI is partnering with TSMC to develop a custom chip on the A16 Angstrom process, enhancing Sora’s video-generation capabilities.

• California has passed the AI law, pending the governor's signature. 100 ex-employees from top AI firms urge swift action.

• Claude introduces an Enterprise feature with no training on chats, a 500k context window and native Github integration.

• Gemini, like OpenAI and Claude, can generate structured text in JSON format for tasks requiring specific data outputs.

• Google's GameNGen AI project, powered by Stable Diffusion, generates original Doom gameplay in real-time.

• MiniMax, the Chinese text-to-video model, generates 5-second videos in HD quality. Hollywood in your pocket.

• A Taiwanese legislator used ElevenLabs to assist during questioning. It's likely the first time AI has been used in a parliamentary debate.

• Ilya Sutskever’s startup, Safe Superintelligence (SSI), has secured $1B in funding to develop AI systems that exceed human capabilities.

• Elon Musk is cooking. X released a TV app and recently opened what might be the largest GPU cluster globally, expect Grok 3 in December.

• DeepSeek-V2.5 is an upgraded open-source model combining general and coding abilities, combining V2-instruct and V2-chat.

• Weave Robotics has introduced Isaac, a personal home robot capable of autonomously performing tasks like cleaning, organizing, and more.

• NEO Beta is a humanoid robot built for home use, featuring impressive specs like the ability to carry 20 kg, and a running speed of 7.5 mph.

• Chinese scientists have developed a brain-inspired architecture that they believe could lead to artificial general intelligence (AGI).

• PaperQA2 is the first AI agent to outperform PhD-level researchers in scientific literature reviews, conducting entire reviews independently.

• Hume’s new voice-to-voice emotional intelligence model is capable of understanding and generating various tones, accents & personalities.

• Project Sid simulates over 1,000 autonomous AI agents collaborating Minecraft, forming their own economy, culture, religion & government.

• Aleph Alpha’s “T-Free” approach revolutionizes large language model training by cutting training and inference costs by 50%.

👋 Let's Connect!

This was it. Our twentieth digital dip together. It might seem like a lot, but remember; this wasn't even everything that happened in the past few weeks. This was just a fraction.

Navigating this AI revolution isn’t simple, but it doesn’t have to be daunting. I can help you understand where AI fits into your business model, how to build the right AI solutions, and how to position your workforce for the future. Just reply, and we can schedule a time to discuss further.

Over the next four weeks, we will be traveling through the western United States. I’m really looking forward to it, but it’s possible that I may not have internet or electricity during my trip. I expect to send the next Digital Dips around October 3rd.

Looking forward to what tomorrow brings! ▽

-Wesley