Will AI Value Driver be Same, or Different, from Internet Impact?

Some of us believe artificial intelligence will have as big an impact as the internet did, which is to say existing industries and whole business models and processes will be disrupted, while at least a few entirely new industries could arise. 

The issue is how that impact will be primarily felt, though. If the internet largely reduced marginal costs and therefore enabled global platforms to emerge, what will AI bring?

Two broadly-different drivers of outcomes might happen: AI reshapes processes in roughly the same way the internet did, or AI reshapes processes in a new way. 

In other words, if the internet primarily recase marginal cost, AI might work the same way. If AI automates processes, it could likewise lower marginal cost of any operation. 

On the other hand, AI, by enabling massive personalization and customization of products and experiences; allowing faster innovation based on better research and development processes; might drive change primarily by allowing new products to be created and discovered. 

The primary change driver would be as a value multiplier more than a marginal-cost reduction mechanism. 

Use of generative AI to support customer contact operations is an example of reducing marginal cost by automation. Use of AI to tailor product recommendations to particular customers is another form of applied automation or lower operations cost value. 

On the other hand, it is conceivable that AI drives value primarily by enabling new product creation. AI already is used to develop new drugs and medical treatments, create new financial products, and design new software applications.

So while it is possible that AI works in both ways--to reduce costs and increase innovation--it seems likely that most of the impact could come in one of those ways, in the same way that almost all the value created by the internet revolves around lower marginal cost. 

Feature	Internet	AI
Primary Impact	Reduced marginal cost of production and distribution	Automation, personalization, and new product and service development?
Key Enabler	Connectivity, information access and global reach	Data analytics, machine learning, and predictive capabilities?
Impact on Business Models	Created new business models like ad-supported technology, sharing economy, and crowdfunding	Does AI improve existing models or enable new ones?
Impact on Business Processes	Streamlined processes, reduced costs, and increased efficiency	A mix of efficiency and quality gains
Impact on Industries	Disrupted traditional industries, created new industries	What mix of disruption and creation?

Right now, it seems as though AI will have its greatest impact as a value multiplier or insight generator or cognitive augmentor,  where the internet has the greatest impact as a marginal cost reduction mechanism. 

In other words, AI might be about analytics, insights and cognitive augmentation rather than marginal cost reduction, though it might well have that impact as well.