Someone Still Has to Buy Your Product (mayt.substack.com)

The emergence of advanced AI tools, such as Claude and Higgsfield, is drastically reshaping the landscape of creative services like video marketing and design, allowing companies to produce high-quality content at a fraction of the time and cost. This presents a significant challenge for traditional agencies that previously relied on these tasks for revenue, as they risk losing clients to AI-driven solutions that can undercut their prices by up to 20 times. The exponential growth in AI's task-completion capabilities suggests a looming economic shift where freelancers and small businesses in the creative sector may struggle to compete. As companies increasingly adopt AI to streamline costs, the ripple effects could be profound. Existing businesses that are unable to adapt may face steep declines in revenue, impacting employees, freelancers, and associated industries, leading to a cascading effect on consumer spending. While the long-term outlook may allow the economy to stabilize around a new norm of cheaper services and innovative business models, many traditional firms may not survive the transition, raising critical questions about sustainability in an AI-driven marketplace. As businesses celebrate cost savings, the reality remains: someone still has to buy their products.