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Over the past several days, famous YouTube creators like Casey Neistat and MrBeast used words like âfrighteningâ or âscaryâ to describe the various implications surrounding the new artificial intelligence (AI) video creation app Sora that quickly rose to the top of the U.S. Apple App Store charts. And although these popular YouTubers (influencers) are mostly concerned about how the platform generating massive amounts of "AI slop" will impact parts of the creator economy. Though, there's many similar âterrifyingâ implications surrounding how this type of generative AI technology could speed up product proliferation that the CPG industry hasn't fully considered yet. Also, since weâre still in the very early innings of the AI industrial revolution, and the current median age of U.S. governmental lawmakers is one of the oldest Congressional groups in history (which have proven through public hearings they can barely understand early web 2.0 concepts let alone the next generation of the internet), it largely implies that the private sector will have ample space to âmove fast and break things.â And in the case of these newest AI technologies (created by massive technology companies), theyâre currently deep in human behavior research modeâŠtesting various âattention at all costsâ theories. But most industry professionals would agree that it has never been easier than right now to launch a CPG product. Often driven by the rapid emergence of digital technologies (and democratized advanced contract manufacturing techniques), smaller companies can develop and launch CPG products with less money, reduced expertise, smaller teams, and increased speed. And these constant lowering barriers-to-entry across the CPG industry have substantially grown the overall number of products launched annually. But over the last decade, Iâve thoroughly documented the âCatch-22â nature of the âEndless Aisle Age.â The sheer volume of new CPG products entering the market does provide optionality (especially for niche consumer demand), but it also potentially saturates the market with low-quality or unnecessary items. In that regard, itâs important to remember thereâs a fairly limited total categorical (and/or format) spend each dayâŠand if thereâs more supply of CPG products vying for that relatively static amount of demand, competition intensifies. And thatâs largely why even within niche categoriesâŠit has become increasingly difficult for truly innovative (and valuable) CPG products to stand out and succeed.But hereâs maybe the most âterrifyingâ partâŠeven though the CPG industry has recently shifted seemingly overnight from cautious experimentation to full-scale adoption of generative AI, it hasnât augmented product creation to the same/similar level as what I detailed earlier surrounding content creation (at least yet). What happens when all you need to do is type a few words into your phone from your bed in a dark room, click a buttonâŠand it gives you a priced manufacturable CPG product, and then itâs essentially ready for sale? And you do that 1000 times a day, every day! The larger financial aspect involving âCPG AI slopâ might help challenge the idea that a capability to create automatically implies a moral imperative to do so, but as those cost barriers diminish furtherâŠthe future probability of âCPG AI slopâ pervasiveness becomes more worrisome. But even without this âAI slopâ threat being real currently, CPG companies are already struggling to compete for âshare of attentionâ with algorithm hacking higher-reach, lower-quality goods.
By Joshua Schall4.8
1717 ratings
Over the past several days, famous YouTube creators like Casey Neistat and MrBeast used words like âfrighteningâ or âscaryâ to describe the various implications surrounding the new artificial intelligence (AI) video creation app Sora that quickly rose to the top of the U.S. Apple App Store charts. And although these popular YouTubers (influencers) are mostly concerned about how the platform generating massive amounts of "AI slop" will impact parts of the creator economy. Though, there's many similar âterrifyingâ implications surrounding how this type of generative AI technology could speed up product proliferation that the CPG industry hasn't fully considered yet. Also, since weâre still in the very early innings of the AI industrial revolution, and the current median age of U.S. governmental lawmakers is one of the oldest Congressional groups in history (which have proven through public hearings they can barely understand early web 2.0 concepts let alone the next generation of the internet), it largely implies that the private sector will have ample space to âmove fast and break things.â And in the case of these newest AI technologies (created by massive technology companies), theyâre currently deep in human behavior research modeâŠtesting various âattention at all costsâ theories. But most industry professionals would agree that it has never been easier than right now to launch a CPG product. Often driven by the rapid emergence of digital technologies (and democratized advanced contract manufacturing techniques), smaller companies can develop and launch CPG products with less money, reduced expertise, smaller teams, and increased speed. And these constant lowering barriers-to-entry across the CPG industry have substantially grown the overall number of products launched annually. But over the last decade, Iâve thoroughly documented the âCatch-22â nature of the âEndless Aisle Age.â The sheer volume of new CPG products entering the market does provide optionality (especially for niche consumer demand), but it also potentially saturates the market with low-quality or unnecessary items. In that regard, itâs important to remember thereâs a fairly limited total categorical (and/or format) spend each dayâŠand if thereâs more supply of CPG products vying for that relatively static amount of demand, competition intensifies. And thatâs largely why even within niche categoriesâŠit has become increasingly difficult for truly innovative (and valuable) CPG products to stand out and succeed.But hereâs maybe the most âterrifyingâ partâŠeven though the CPG industry has recently shifted seemingly overnight from cautious experimentation to full-scale adoption of generative AI, it hasnât augmented product creation to the same/similar level as what I detailed earlier surrounding content creation (at least yet). What happens when all you need to do is type a few words into your phone from your bed in a dark room, click a buttonâŠand it gives you a priced manufacturable CPG product, and then itâs essentially ready for sale? And you do that 1000 times a day, every day! The larger financial aspect involving âCPG AI slopâ might help challenge the idea that a capability to create automatically implies a moral imperative to do so, but as those cost barriers diminish furtherâŠthe future probability of âCPG AI slopâ pervasiveness becomes more worrisome. But even without this âAI slopâ threat being real currently, CPG companies are already struggling to compete for âshare of attentionâ with algorithm hacking higher-reach, lower-quality goods.

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