Comment by dangus

I don’t deny that LLMs are useful, merely that they only represent one product that does a small handful of things well, where the industry-specific applications don’t really involve a whole lot of extra features besides just “feed in data then chat with the LLM and get stuff back.”

Imagine if during the SaaS or big data or containerizaiton technology “revolutions” the application being run just didn’t matter at all. That’s kind of what’s going on with LLMs. Almost none of the products are all that much better than going to ChatGPT.com and dumping your data into the text box/file uploader and seeing what you get back.

Perhaps an analogy to describe what I mean would be if you were comparing two SaaS apps, like let’s say YNAB and the Simplifi budget app. In the world of the SaaS revolution, the capabilities of each application would be competitive advantages. I am choosing one over the other for the UX and feature list.

But in the AI LLM world, the difference between competing products is minimal. Whether you choose Cursor or Copilot or Firebase Studio you’re getting the same results because you’re feeding the same data to the same AI models. The companies that make the AI technologies basically don’t have a moat themselves, they’re basically just PaaS data center operators.