Online Over Face to Face Distribution

Lately, I’ve been thinking about distribution and the channels that make the most sense, particularly in terms of scalability. Another critical factor in distribution is the network effect, where the value of the network or system increases as more people become a part of it.

I’ve been wrestling with the question of what network effects might arise as more people embrace AI applications. Isn’t AI meant to be a one-on-one partner and copilot? Should other human actors be integrated into the information flow? Perhaps the network effect will emerge as people simply use the service and find significant value in it, compelling them to recommend it to their friends. The AI can then take care of the rest. It’s possible that word-of-mouth will be the key network effect for AI, as individuals experience transformative value from using AI models like LLMs and share their positive experiences with others.

I believe the traditional social network model, where more members lead to increased network value, may already be undergoing disruption.