Klarna's AI CEO: Exploring the Future of Corporate Leadership

Can AI Avoid Enshittification? Lessons for Marketing Managers

Update Understanding Enshittification: The Phenomenon That Could Limit AI's Potential In the rapidly evolving landscape of artificial intelligence (AI), one term that has emerged to describe a potential downfall is enshittification, coined by Cory Doctorow. This concept outlines a chilling trajectory for tech platforms: they start by offering exceptional products to attract users, but eventually shift focus to profit maximization at the expense of user experience. As AI grows increasingly profitable and important in our daily lives, understanding this cycle is crucial for marketing managers who rely on these technologies. The Cycle of Enshittification: From Utility to Manipulation Historically, platforms such as Google and Facebook began with user-centric models, providing genuine value to their customers. However, as their user bases expanded, they became more focused on generating revenue from advertisers and enterprises, resulting in a degradation of services. Initially, Google’s search engine was heralded for its efficiency and accuracy; as ad revenue became a priority, users found themselves sifting through sponsored content. The same can be seen in social media platforms where organic engagement gave way to paid promotions. According to Sashank Dara, this pattern of prioritizing profit over user experience is currently being echoed in AI systems. "Many of today’s AI tools, such as ChatGPT and MidJourney, offer users tremendous value at little to no cost. However, as they mature, they may follow the enshittification path, shifting focus from user satisfaction to profit generation." Disturbing Trends in AI Monetization As AI platforms grow in prominence, they risk succumbing to the same pressures that have plagued legacy digital services. Increasingly, marketing managers must watch for signs of enshittification in their AI tools. For instance, pressure to monetize could lead to AI systems embedding ads into their user interactions, or worse, prioritizing responses based on sponsorship deals rather than merit or utility. An alarming trend is the emergence of Generative Engine Optimisation (GEO), a concept that replaces SEO with algorithms that prioritize embedding brand mentions into AI responses. This raises questions about the authenticity of AI-generated content, putting marketing teams at risk of inadvertently promoting biased or influenced information. Future of AI and the Burden of Profitability Conrad Gray warns that history tends to repeat itself. The ongoing AI revolution, akin to past technological waves, faces a looming hangover as future profitability pressures force changes in service delivery. "As groundwork has been laid for freely available AI tools, the time will inevitably come when businesses are left to navigate complex pricing structures and potential pitfalls associated with degraded user experiences." Marketing managers should be prepared for potential shifts in pricing and access as free tools evolve into expensive products, motivating customers to consider value versus cost. Strategies for Avoiding Enshittification in AI Given the inevitable pressures on AI platforms, how can businesses strategize to mitigate these risks? Emphasizing ethical and transparent practices is key. Companies can do this by: Engaging in Antitrust Advocacy: Support legislative measures that foster competition and transparency in AI deployment. Prioritizing User-Centric Models: Develop services that maintain value delivery as a core business principle, avoiding the trap of short-term gains. Building Public Trust: Enhance communication with users regarding data usage and monetization strategies to reinforce trust. The Path Forward for Marketing Managers For marketing professionals, actively participating in the evolution of AI technologies is paramount. The experience-sharing and feedback loops with users can foster a healthier ecosystem that avoids enshittification. Understanding that immediate profits must not compromise user experience and ethical standards is critical in this landscape. As the marketplace for AI tools becomes increasingly competitive, marketers should prepare for a future where their choice of partners greatly affects their brand's reputation and effectiveness in an AI-dominated world. In summary, the looming risk of enshittification poses serious questions for AI’s future. By taking proactive steps, marketers can influence the trajectory of AI applications and their integration into everyday business practices.