Most new technologies foster improved product performance. I call these sustaining technologies. Some sustaining technologies can be discontinuous or radical in character, while others are of an incremental nature. What all sustaining technologies have in common is that they improve the performance of established products, along the dimensions of performance that mainstream customers in major markets have historically valued. Most technological advances in a given industry are sustaining in character…Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use.
The Innovator’s Dilemma - Clayton Christensen
There is lots of room for evolution, but the evidence is clear: Today, LLM applications are a sustaining technology.
- Microsoft - Recall is Microsoft’s key to unlocking the future of PCs
- Apple - Apple Bets That Its Giant User Base Will Help It Win in AI, Apple + AI: What to Expect at WWDC 2024
- Adobe - Firefly
- Google - May I/O, AI Labs, Google’s Gemini AI is coming to the sidebar in Docs, Drive, Gmail, and more, Google adds AI-powered features to Chromebook
- Intercom - AI Chatbot
- Ironclad - Contract AI
- Khan Academy - Khanmigo
The list of established products being improved goes on and on. Read Ben Thompson's excellent post from January 2023 here.
While sustaining applications focus on improving existing products, disruptive technologies challenge the status quo with new value propositions.
This shift can be seen in the development of LLM applications that are cheaper, simpler, smaller, and more convenient to use:
- Generative Music - Udio, Suno, etc..
- Generative Audio - ElevenLabs
- Generative Art - Midjourney, etc..
- Generative Stories - Showrunner, Pika, etc..
- Generative Creative - Captions etc..
Even these ^ seem likely to get pushed-to-scale by incumbents that have the data/infra edge. As Christensen predicted though, I think these sorts of applications can still win by focusing on the "other features that a few fringe (and generally new) customers value."
I'm sure more disruptive products will emerge over time, redefine industries and create new markets. Today though, the clear winners are the incumbents.
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