The Impact of Generative AI on Business and the Environment.
Originally Published 2 years ago — by Andreessen Horowitz
Generative AI unlocks a new category of product design called probabilistic products, which have non-deterministic and often emergent attributes. Products can be organized into three groups based on their tolerance to probabilistic outputs. The first group includes products that are uniquely enabled by or benefit from the probabilistic nature of the platform, such as AI companionship and assisted shopping. The second group tolerates probabilistic outputs, while the third group demands deterministic outputs, such as financial projections and tax calculations. Product designers must carefully consider the tolerance of their products to a dispersion of outputs.