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Lea Verou, PhD
@leaverou@front-end.social  ·  activity timestamp 3 months ago

I get why some #AI companies need to resort to usage-based pricing, but from a user-centered perspective, it’s completely bonkers.

Let me explain.

The better the AI agent, the less you need to iterate, right?
Ideally, it just gets it right from the first prompt.

The more you iterate, the higher your usage.
Still with me?

So usage-based billing = the worse the AI software, the more it costs!

In which other industry would this fly? 🤔

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itgrrl :donor:
@itgrrl@infosec.exchange replied  ·  activity timestamp 3 months ago
@leaverou this isn’t new behaviour in the software / computing industry, or even more broadly under capitalism - it’s practically SOP & / or a badge of honour for many “entrepreneurs”
  • operating systems with long-standing security vulnerabilities & no / limited culture of secure-by-design development, OS vendor then sells you an antivirus / security product to “fix” the problem that they allowed to exist in first place (a whole ecosystem of 2° & 3° vendors has sprung up around this)

  • cloud platform requires higher-tier licensing to access security products to manage platform security, also charges for log storage necessary to fully utilise those licensed security products / components (again, an ecosystem of 2° & 3° vendors have sprung up to paper over the cracks)

and others have already mentioned “boots theory”^ – low-quality products requiring higher expenditure over time than higher-quality products is well-established in other industries (clothing, vehicles, mechanical spares, sporting goods, etc.)

even in healthcare (in some countries), people who can’t afford regular visits to a doctor or the medications they need to treat an initial medical condition will end up having higher medical costs as their un(der)treated illnesses develop into worse conditions requiring more-intensive, higher-cost interventions over time (which, depending on the country, they’ll either continue to be unable to afford and have miserable, shorter lives, or if they’re “lucky” will be borne by the state)

in for-profit healthcare systems, this is the system operating as intended ( #POSIWID )

one of the economic drivers for states that do provide decent healthcare (in addition to believing that citizens should lead healthy lives) is to ensure that people have good access to early interventions so that the state doesn’t bear the higher costs later on

there’s usually no similar incentive for for-profit companies to produce higher-quality goods & services, as weak regulatory regimes tend to go hand-in-hand with aggressive capitalism



^ <obligatory>
X-Clacks-Overhead: #GNUTerryPratchett
</obligatory>

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tripleman, a 🇨🇦 in 🇩🇪
@tripleman@mastodon.social replied  ·  activity timestamp 3 months ago
@leaverou
A screenshot, of a computer screen, from the movie, War Games. The only thing displayed on the monitor is text which reads, 

“A STRANGE GAME.
THE ONLY WINNING MOVE IS
NOT TO PLAY.”
A screenshot, of a computer screen, from the movie, War Games. The only thing displayed on the monitor is text which reads, “A STRANGE GAME. THE ONLY WINNING MOVE IS NOT TO PLAY.”
A screenshot, of a computer screen, from the movie, War Games. The only thing displayed on the monitor is text which reads, “A STRANGE GAME. THE ONLY WINNING MOVE IS NOT TO PLAY.”
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Tipiak75 :kirby:🍜
@tipiak75@mastodon.social replied  ·  activity timestamp 3 months ago
@leaverou Hard drugs industry comes to mind... 😅
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James
@jamesdoesdev@mastodon.world replied  ·  activity timestamp 3 months ago
@leaverou but usage is in tokens rather than prompts from what I’ve seen. Tokens roughly equate to compute and seem to scale dramatically with task complexity and quality (in theory).

There’s no efficiency gain in improving LLMs, at least in what the big providers are selling, so “better” just means “higher cost”. Not to mention they’ve been subsidising it massively for a long time and now want to pull that back, so they’re gambling that people are hooked enough to just pay up.

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felix (grayscale) 🐺
@gray17@mastodon.social replied  ·  activity timestamp 3 months ago
@leaverou generative systems are gambling. if the output is bad, you spin the wheel again to see if it produces something better, and sometime you get a jackpot, so you keep trying for more. there are a lot of "strategies" for getting jackpots, and some of them are not superstition, but there's no perfect strategy, it's always gambling, and that's a feature, not a bug
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Timo Tijhof
@krinkle@fosstodon.org replied  ·  activity timestamp 3 months ago
@leaverou

I see a parallel with hourly billing (vs project/result/retainer pay), and renting tools/machinery.

If you commission work and agree to pay hourly, one designer may be better or quicker than another. Long-term this balances with reputation, skill level, hourly rate. But a less skilled one could charge more than their worth to unsuspecting clients or work slowly/effectively, while a "better" designer may charge the same and finish sooner.

Idem for DIY tools (better quality/faster).

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mgiraldo
@mgiraldo@mstdn.social replied  ·  activity timestamp 3 months ago
@leaverou yeah. they literally have an incentive to produce a product that gets things *almost* correct but not correct enough that you stop using it. good for them that llms work this way by design
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