Commodization has been a staple of the information technology realm for years. It really doesn’t matter what personal computer or smartphone you use, and stepping it up in the enterprise, databases and cloud systems can readily be swapped, based on price and support servies. Is artificial intelligence reaching this point? Opinions vary.
Commoditization occurs when products or technologies are widely available and interchangeable. It also follows the democratization of offerings. Also, the products or technologies no longer raise enterprises above the market fray, any more than having a well-wired electrical system would. But a company. can’t thrive without it.
AI tools and platforms — particularly generative AI — it may meet such definitions — as it is now widespread, available to all at no or low cost. And since everybody now uses it to some degree, it may not offer significant competitive advantage. Does that mean, just as PCs and internet access are commodities that don't necessarily deliver competitive advantage, AI is on the same path? Everyone needs it, but everyone will also have it.
That has definate downsides.
To read more, click here.