Abhishek Jha’s Post

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Co-Founder & CEO, Elucidata | Fast Company's Most Innovative Biotech Companies 2024 | Data-centric Biological Discovery | AI & ML Innovation

I read this blog a few years back and it resonated quite strongly with me as a founder of a #SaaS company providing AI services to our customers. Thought it was worth highlighting and sharing it again in post-GPT world. AI companies often struggle with lower gross margins of 50-60%, contrasting sharply with traditional SaaS businesses reaching 60-80%+, due to hefty cloud costs and ongoing human support needs. This underscores the reality for #AI startups! Overcoming these hurdles could redefine economic strategies in tech, prompting new approaches that blend software efficiency with service-oriented flexibility to build resilient AI enterprises.

The "Humans in the loop" concept feels very familiar to me because I feel that's the case with traditional data analytics. There are a lot of data analytics products out there that claim to give you all the insights you need to both find problems and act on them. In most cases, humans are still needed in some capacity to get the full picture.

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