Best Essays: The Mobile S Curve ends, the AI S Curve starts by Andrew Chen

I am just so impressed hence sharing here: https://andrewchen.substack.com/p/the-mobile-s-curve-ends-and-the-ai

Also sharing the AI summary from Perplexity here:

In Andrew Chen's essay titled "The mobile S-curve ends, and the AI S-curve begins," he discusses the transition from the mobile technology S-curve to the emerging AI S-curve. Here is a summary of the key points:

End of the Mobile S-Curve: The mobile technology S-curve, which has driven significant growth and innovation over the past 15 years, is reaching its maturity phase. This means that the rapid growth and novelty associated with mobile technology are slowing down.

Beginning of the AI S-Curve: AI is at the early stages of its S-curve, characterized by high growth potential and significant interest from investors and startups. Building AI products is challenging, but the market is ripe for growth due to the novelty and excitement surrounding AI advancements.

Novelty Effect: Early-stage AI products benefit from the novelty effect, where new and impressive features attract enthusiastic early adopters, leading to rapid initial growth. However, this phase also experiences high churn rates as the novelty wears off.

Investor Focus: Investors are particularly interested in the early part of the AI S-curve because it promises substantial growth opportunities. Venture capital often flows into new sectors like AI, encouraging startups to pivot and capitalize on the emerging market.

Challenges of Retention: As AI products mature and the novelty effect diminishes, retention becomes crucial. Only products with strong retention rates will thrive as the market stabilizes and competition increases.

Market Dynamics: The essay emphasizes that dynamic and competitive markets are often the most promising. The rapid adoption of new technologies is accelerating, and the intersection of mobile and AI could potentially revitalize interest in mobile applications.