Implications of the Emerging Personalized Economy
New technologies are making it easier and cheaper to get products and experiences that are tailored just for you. These include things like AI, augmented and virtual reality, digital goods, and 3D printing. These changes can impact how we see the world, get news, and even communicate with others. This blog post will talk about how these changes affect our economy and society.
These new technologies mean that custom products are becoming cheaper and easier to make. We’re already seeing this with services like Google and TikTok, which let niche businesses tailor their offerings to people worldwide, enabling businesses that weren’t previously possible. Now, 3D printing is making it cheaper to produce custom goods since inputs can be commoditized and digital designs will be abundant. Like digital designs for 3D printers, digital goods in AR/VR also have no marginal cost and will be available in mass.
In the future, it looks like everyone will be able to have personalized digital and 3D printed goods. This is so different from how the world works today, where centralized corporations like Ikea and McDonalds rule due to their lower costs. Instead of big companies making products for everyone, we might see more small businesses and artists making products for specific groups of people. This is a huge win for consumers who get both low cost and customization, and arguably a win for most laborers who may be able to work independently or in smaller organizations rather than massive corporations.
This change means workers will need to adapt. Instead of working for a big company, they might end up working for small businesses or even starting their own. The way we make and consume goods and services is changing, and this could have big effects on businesses, workers, and society.
With more personalized goods and services, people will also start to see and share things in a new way. Before, you might have kept your opinions to yourself or shared them with a small group. But with new technology, you could start to express and reinforce your viewpoints even more through the things you consume.
This shift will impact our daily life, but also our culture and society. We will have more choices, and a more diverse group of people will be able to contribute to the market. This can lead to more innovation and a rich culture full of unique products.
However, there could be downsides. As we consume more personalized content, we might start to lose shared experiences. This could isolate us within our own echo chambers and lead to more polarization and fragmentation in society. We’ll need to actively seek out different perspectives and engage in open conversation.
Also, with fewer large employers, benefits like healthcare could be disrupted. We’ll need to find new ways to provide these services and keep our communities together.
Opportunities for Startups
Startups can help by creating platforms that allow artists and small businesses to sell their goods and services. They can also help design and produce these items.
To deal with the issues of fewer large employers, startups can create innovative solutions to replace traditional jobs. For example, they could partner with communities to provide healthcare or education, or they could create platforms for freelance work with benefits like insurance and retirement savings.
Startups can also help address the potential downsides of a more personalized economy. They could create platforms for open dialogue and exposure to diverse viewpoints, or tools to combat isolation and fragmentation from personalized media.
Investors might want to look at companies that are creating personalized experiences using AI, AR/VR, and 3D printing. They could also look at companies that are disrupting traditional businesses and providing digital design repositories and markets. There is also a need for companies building tools for creators and ways for people to maintain social connections.
Investors should also consider startups that offer solutions for education disruptions as degrees from top universities may matter less when competition for jobs at large-scale companies decreases. Additionally, startups that offer innovative solutions for pooled resources like healthcare and other benefits will be in high demand.
Personalization technologies are changing our economy and society. More and more, we’re seeing personalized goods that are cheap and easy to make. This is creating a more diverse and customer-focused economy. It’s also changing how we see and share things. But we need to be careful about losing shared experiences and we need to find new ways to support workers. It’s important that we keep having open conversations and seeking out different perspectives to make sure our society stays cohesive and inclusive.