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You Ask, I Answer: B2B or B2C Benefits More From AI?

Unlock the benefits of AI for your business with this expert analysis. Discover which industry, B2B or B2C, will see more advantages from AI, and why. With insights into cost-effectiveness, scale, and expectations, find out how your business can leverage AI for greater efficiency and success. Watch now to learn more. Hit that subscribe button for more expert advice.

You Ask, I Answer: B2B or B2C Benefits More From AI?

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Christopher Penn 0:00
In today’s episode, Mary asks, which industry, B2B or B2C will benefit more from artificial intelligence? And that’s a tough question to answer.

But my inclination is that B2B will enjoy more of the benefits of AI with fewer of the costs.

And here’s why.

When you’re talking B2C, we’re talking business to consumer, we’re talking about many times scale, the ability for a chatbot to be able to run on your website and address millions of people handle customer service issues and things like that.

Personalization, doing RFM analysis doing predictive forecasting for customers.

All of that is incredible value that AI can unlock for a B2C company.

But one of the challenges that comes with that is scale.

If you’ve got millions of customers, you have a compute problem, in the sense that it costs a lot of money to deploy some of these engines.

To add scale.

If you’re using a an API based service like OpenAI, for example.

Every time you hit that API, you’re costing money.

And if you’re sending out a million messages, or a million tweets or things like that, bill gets pretty big pretty fast.

To the point where for the largest enterprise B2C companies, companies like Target or WalMart, for example, it’s going to be more cost effective for them to build their own in the long run.

Because of just the sheer scale this your amount of scale they have.

B2B companies typically don’t have that problem.

B2B companies have audiences in the 1000s, rather than the millions have addressable audiences in the 1000s, rather than the millions and have.

They have the same needs for customization personalization forecasting generation.

But because the scale is so much smaller, they can afford to do use the nicer stuff.

They can afford to build an integration with OpenAI, for example.

And instead of having, you know, millions of people hitting their app, they might have 500 people hitting a chat GPT-2 Like app within the company.

And so their bills will be much lower.

But those those tasks that AI handles will make them far more efficient, and make them far better at their jobs.

And so, as I look at the landscape, both B2B and B2C companies stand to benefit substantially from the use of AI, particularly the use of AI and marketing, AI and sales, etc.

But B does B2B companies feel like this is this is subjective opinion, but B2B companies feel like they will be able to benefit more from the particular strengths of AI.

Without the costs of scale, they will be able to use more computationally expensive technologies, because again, you don’t have to deliver massive volume.

For example, inside of a CRM package, you might have something like a chatbot, like a chat GPT-3 in there to help construct dialogue, or to generate messages.

In those situations, a B2B company might not have the same latency demands that a B2C company might example, you are on a B2C companies website and you’re working with a chatbot, you expect that chat bot to be fast and responsive to get back to you to answer as though it were a real person.

Contrast that with something like in B2B, where you’re in your marketing automation software, and you tell it to generate a bunch of tweets.

You’re okay, if it says like, yeah, come back in five minutes, right? And they’ll be done.

Like, okay, cool.

I’m gonna go on to another thing on my to do list and let it do its thing.

That difference in expectations means that B2B companies will be able to leverage the more computationally expensive models because people are okay with that experience.

They’re used to it experience where yeah, there is some batch processing, there’s some delay, etc.

Whereas consumers and B2C are a lot less tolerant of that kind of thing.

So again, both types of industry will benefit from AI, but I definitely see B2B as being able to use it more and to get greater benefit from it.

It’s a really interesting question.

It’s a really interesting question.

So thank you for that.

Take care.

I’ll talk to you soon.

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