Why Business Models Matter

It started with a phone. I picked it up on a walk and Google served me a list of the 10 happiest countries in the world. Of course I clicked on it. And then I thought about how well they know me, and why that matters.

This post explores how business models create incentives, and how those incentives quietly shape the products we use. The AI industry is splitting into two camps right now. One is experimenting with ads. The other is choosing subscriptions. Same technology, completely different incentives. An ad-based platform needs your attention as long as possible. A subscription platform is spending money every minute you're on it.

That difference might sound small. But think about Facebook. Their original mission was to bring the world closer together. Then the ad model took over, and the algorithms learned that fear, anger, and outrage keep people scrolling longer than connection ever could. The business model changed the company's direction without anyone intending it.

Now imagine adding an empathetic AI to that same ad-based model. Not a stranger trolling you. A machine designed to feel like the most understanding person you've ever talked to, keeping you engaged so it can sell more ads.

The decisions being made right now about how AI companies make money will shape what this technology becomes. We've already seen what happens when attention becomes the product. AI is far more powerful than social media ever was. Maybe the most practical question we can ask right now is a simple one. What's the business model?

Read the full piece on Substack.

Learn more about the adventure at www.heart-strong.org.