Trend #002 - How to profit from the AI hype 🚀 | Google's dangerous competitor 😈

Hey,

Every other Friday, I will send you a trend alert to make you the smartest person in the room about all things indie startup.

Today, we are going to break down the hype about generative AI content.

Btw. This newsletter is gaining momentum!

We are getting lots of ❤️ from the indiepreneur community! Just look at this lovely comment (he’s building an AI tweet tool):

Thank you all! Right, let’s get back to today’s topic.

What you will learn:

• Other than ChatGPT, what other generative AI techs are out there?

• Who is making $66,000/month within 6 weeks of launch?

• Who just became a billion-dollar AI company in 2 years?

• 9 Interesting ways to use generative AI

• Which 5 industries has it disrupted?

• The big picture - where is this all going?

• Should YOU be worried about your job?

• Will ChatGPT replace Google?

• Brainstorm new business opportunities in this space

Let's dive straight in 👇

🔎 What is Generative AI?

Ok, you are on Twitter. So it's unlikely you've not seen tweets from people trying out the shiny new ChatGPT that was launched 2 weeks ago by Open AI. It is one of many examples of generative AI tools, all using machine learning algorithms to create text, audio, and visual content.

👀 Examples of Generative AI?

Here are 3 fast-growing startups building tools on top of generative AI's capabilities:

• 🚀Jasper.ai - A marketing-focussed generative AI tool that went from zero to $1.5bn valuation in 22 months.

• 🚀AvatarAI.me - A profile image generator tool that is generating $66,000/month within 6 weeks of launch.

• 🚀Excelformulabots - Added 55k accounts, 606 paid subscribers and made $10k within the first month of launch simplifying excel for non power users. As a Google Sheet nerd (I used to be a private equity manager), I can't tell you how excited I am to see this.

And some incredibly exciting projects with lots of potential:

• 🌱Jonas built a virtual computer INSIDE ChatGPT and interacted with it with code. He basically asked ChatGPT to answer like a computer and... voila. He built himself a computer.

• 🌱Sahil created Ask an author to help you interact with his book. You "ask the book" a question, and the AI will answer your questions based on what it thinks Sahil will say, and in his voice. (This one got marketers excited.)

• 🌱Trung's chrome extension gives you a TLDR summary of any articles or books you read online, along with takeaways and counter-arguments. (Readers loved this one)

• 🌱My request for ChatGPT to create a presentation outline for a digital marketing workshop.

• 🌱This company generates music using AI.

• 🌱Dylan taught AI to invent a new language. I've not thought of a good use case for this yet (aside from using it in movies).

😵 What industries has AI shaken up already?

• Graphic design (especially illustration)

• SEO content writing

• Marketing (copywriting)

• Programming

• Social media management

👁 The Big Picture 

So, where is this all going?

At this stage, everyone is still testing the boundaries of what generative AI CAN do. It's fun. It's fresh. And it's surprisingly good at coming up with quirky answers.

Will it take over ALL our jobs? At the present stage. It's unlikely.

It cannot execute tasks (like look after our kids, fix our plumbing issues), nor can it make emotionally-charged decisions for us (should we find a new job, where should we take this company).

There is one type of job that is most at risk however.

Middle management.

Drafting presentations. Reporting to higher-ups. Researching options. Writing emails. Creating drafts. Debugging codes.

It can perform the role of an on-site junior remarkably well.

🔥 Opportunities 

The latest Open AI development is opening up plenty of big tech opportunities, from customer service chatbots to AI transcription services. However, in this newsletter, we want to focus only on the SMALLEST version of an MVP that can be done, profitably, today.

So, let's do a quick-fire round brainstorming business ideas you can build TODAY without code using AI.

1. Launch a course.

Not just any course. But one that uses AI to build 90% of the content AND in the style of a famous influencer. 🤯 See my prompt below using Rich Dad Poor Dad as an example. Obviously, don't plagiarise! But you can see how you can semi-legitimately become a guru in all kinds of topics - digital marketing, drawing, self-help...

2. Create a memes illustration empire.

Pick a niche, say kids' book. Make a rude version of this (For ages 18+ only). Use ChatGPT to generate ideas for cards, memes, swags... Use meme's in-built viral factor and micro influencers to grow the business. Yes, it can be a $ million dollar business like this.

(Image credit: The Scottish Sun)

(Image credit: The Scottish Sun)

3. Build a super-charged VA service agency.

Your USP? Specialisms & 48-hour turnaround. Offer email writing, research, and copywriting services. Make some specialisms free, and some as optional upgrades. Of course, use AI to fulfil (part of) the work.

4. Flip blog sites.

Find aged sites with traffic but low content. Add content. Monetise. Sell. For the haters out there that say "but the content is bland!". Try using better prompts (see point 6 below), and add in some personal flair at the end.

5. Build a productized content marketing agency.

Find specific pain points, e.g. email headlines, feedback comments, or product research. Create a whole agency that solves just that one pain point on a subscription basis. Offer this service to other marketing agencies.

Here's an example: Designrr automatically converts your podcast into ebooks. You can do it manually to start (with AI's help of course), but automate the workflow later.

6. Launch an AI prompt assistance guide.

Get very good at generating prompts and explaining how you tweak . Package the knowledge into a course and sell it on Gumroad or on YouTube. I have seen someone showing examples of how he managed to push ChatGPT to its limits (can't find the original tweet unfortunately), and the results are 🔥. Here are two examples of "Prompt engineers" businesses (yes, this is a new job title) - this and this.

7. Offer AI-assisted sales support

Build scripts that train junior sales agents on what to say in each objection handling scenario. Package and sell it as a service to commission only sales personnel (because they are most invested in closing). If you know a bit of code you could convert this into real-time assistance.

💀 Risks  

Everyone on Twitter is getting excited about the new future. Will ChatGPT replace Google? Well, Wall Street seems to think so, as Google's share price fell since the day of ChatGPT's launch.

However, generative AI, by its very nature, creates NEW content. And sometimes it spews garbage and can do so eloquently enough that you might mistake them as facts.

So, unlike ChatGPT, Google is currently still the more RELIABLE source of information because every piece of info is supported by a source (website URL).

Here's what Paul Graham (Y Combinator) has to say about this:

If that sounds like gibberish to you, check out Sam Altman (ChatGPT's founder)'s own version of the same note of caution:

Don't forget the Gate's Law:

We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.

Was this email useful?

My entire purpose in creating these emails are to highlight unusual opportunities for you to find your next big business idea.

I hope it's doing that. If it is, let me know by replying.

In our next issue, we will be predicting Indie Startup Trends for 2023. Stay tuned.

Until the next one,

Hazel

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