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There’s a game-changing trend in retail right now, and it’s already hitting the bottom lines of the world’s biggest companies.
Recently, Google and Amazon both saw search and ad revenues miss market expectations, while Meta is seeing incredible results and millions of downloads for its AI shopping assistant, Muse. This isn't a blip..it's a massive shift in how people shop.
For 20 years, we've seen the concept of "brandless quality" and private labels boom. From Zara and Uniqlo in fast fashion to Costco's Kirkland and our own exclusive brands at Kogan, consumers are increasingly shopping based on features, specifications, and value rather than just a logo.
Now, AI is supercharging this. AI agents are helping customers become purely rational shoppers. They're helping make purchasing decisions based on hard specs and actual needs, completely stripping away the emotional pull of traditional marketing. If your brand relies solely on positioning, and near identical products can be found elsewhere for a better deal, you are going to get found out in the AI era. True innovators with clear differentiators, like Apple and Dyson, will remain valuable, but the landscape for everyone else is changing fast.
Here is where the industry is splitting: platforms like Amazon are closing up, building walls, and trying to ban AI agents from crawling their sites.
At Kogan, we are doing the exact opposite. We are opening our site up and making it easier for AI agents to crawl our products, compare our features, and help users make rational decisions. For two decades, we've loved smart, rational customers who do their research, open multiple tabs, and find the best deal. Because the more people do that, the more customers we win.
AI bots are essentially spinning up new instances of computers and acting as humans. In the long term, they will be nearly impossible to block.
Over the next year, this will be the biggest talking point in retail. How much of your sales are driven by AI agents? And what does it mean for your brand when you have to sell to a hyper-rational computer instead of an emotional human?
There is a lot to unpack here, and it is completely transforming the game. Drop a comment below..I'd love to hear your thoughts on where this is heading.
Constantine Frantzeskos retweeted
We'll be spending a lot more time trying to understand the outputs of language models. A few thoughts, tips & tricks:
Writing. Something I've had success with: Ask your LLM to explain something in ASD-STE100, it's a controlled language specification originally developed for aerospace maintenance documentation. LLMs well-versed in this language and it comes with heavy constraints on clean writing style that I often find a lot more readable. Sometimes I've tried to soften it a bit e.g. ask for "80% of the way to ASD-STE100" because the spec is quite stringent. But even better:
Diagrams / images. Instead of writing, ask your LLM to create a diagram. These can be a lot easier to process, parse, and understand. But even better:
Web pages. Ask for output "in HTML" to get a beautiful, interactive webpage. LLMs are getting really good at frontend and can create beautiful experiences, animations, etc. But even better:
Explainer videos. The output format I am most bullish on is fully custom / bespoke explainer videos generated on any arbitrary topic. Experiment with things like "Create a 3b1b style video explainer on X. Use my ElevenLabs API key for audio narration". (you'd need an API key for the latter or you can ask your LLM to find you decent free alternatives that use your local compute). This is actually starting to work!
In summary:
- As LLMs get better, they will do more and more of the legwork autonomously, and a lot more of our work will rise up the abstractions into oversight and understanding.
- Luckily, LLMs can help here too because as intelligence and code are increasingly abundant, you can ask for large, custom, discardable software artifacts (e.g. web apps, video explainers) that would have never made sense to create before. Push the boundaries here and you'll be surprised.
Constantine Frantzeskos retweeted
Dusting off this tweet from April because this gap in shared understanding of LLM capability is *widening*. It's now less "two groups of people speaking past each other" and more a sharp funnel.
- Napkin math somewhere around 6B people (~75% of the population) have barely come in contact with LLMs at all.
- Around 1-2B (~20%) are casual and infrequent users of free-tier ChatGPT-like products. This group sees derpy chatbots and treats them a bit like a better Google search, a writing aid, or etc. Maybe an agent tries to book you a flight. I have non-tech friends who (reasonably, imo) say they have not much use for it at all. Even many professionals outside of math&code are in this tier. For example, execs and many other functions spend a lot of their time talking to other people, so while they understand what is happening intellectually, it is still second-hand and a bit abstract.
- Now we get to professional use of frontier-grade LLMs in math&code. Somewhere around 20M people (0.2%) see first-hand that large, complex projects that used to take them weeks/months can now be completed by agents with a prompt. Building apps, copying apps, translating apps, decompiling apps from binaries... This has all happened very quickly and recently - less than 1 year ago, I was writing code manually by hand, typing memorized computer code commands into a code editor character by character, occasionally pressing Tab to autocomplete a little chunk of code.
- And finally we get to the ~5,000 people (~0.00006%) with access to frontier-grade systems internally. The external world has seen the preview. It looks like swarms of thousands of agents collaborating over weeks on software mega projects: minting zero days, running cyber attacks and defenses at machine speeds, discovering new science, advancing the frontier of mathematics. Things that would have taken top professionals in the industry years of work. Meanwhile, human review and comprehension are starting to fall behind. For example, people are still involved in the "archeology" of the OpenAI-HF incident from many months ago. Mathematicians may be poring over the 722 manuscripts on frontier mathematics for a while.
The funnel is driven by a combination of factors:
1. The impact scales with ambition, problem size, and horizon. A question with a paragraph answer barely stresses the system. You need a reservoir of big, difficult problems that you really care about. This aspect drives the consumer / professional dimension of the funnel.
2. The jaggedness of the system (which I have written about a lot separately). Capability peaks in domains that are digital, verifiable and economically valuable. This is because LLM capability emerges from reinforcement learning on verifiable rewards on a curated environment mixture driven by revenue potential. This aspect primarily drives the area (e.g. math&code) dimension of the funnel.
3. Access. Free-tier, paid-tier, internal.
So this is the weirdness of the moment. The general public has mostly not interacted with these systems. When they have, it looks like a derpy chatbot. The majority of professionals still see only a modest uplift. And a small sliver of professionals are experiencing the vertigo of the curve going vertical. And it is all happening at the same time.
Judging by my tl there is a growing gap in understanding of AI capability.
The first issue I think is around recency and tier of use. I think a lot of people tried the free tier of ChatGPT somewhere last year and allowed it to inform their views on AI a little too much. This is a group of reactions laughing at various quirks of the models, hallucinations, etc. Yes I also saw the viral videos of OpenAI's Advanced Voice mode fumbling simple queries like "should I drive or walk to the carwash". The thing is that these free and old/deprecated models don't reflect the capability in the latest round of state of the art agentic models of this year, especially OpenAI Codex and Claude Code.
But that brings me to the second issue. Even if people paid $200/month to use the state of the art models, a lot of the capabilities are relatively "peaky" in highly technical areas. Typical queries around search, writing, advice, etc. are *not* the domain that has made the most noticeable and dramatic strides in capability. Partly, this is due to the technical details of reinforcement learning and its use of verifiable rewards. But partly, it's also because these use cases are not sufficiently prioritized by the companies in their hillclimbing because they don't lead to as much $$$ value. The goldmines are elsewhere, and the focus comes along.
So that brings me to the second group of people, who *both* 1) pay for and use the state of the art frontier agentic models (OpenAI Codex / Claude Code) and 2) do so professionally in technical domains like programming, math and research. This group of people is subject to the highest amount of "AI Psychosis" because the recent improvements in these domains as of this year have been nothing short of staggering. When you hand a computer terminal to one of these models, you can now watch them melt programming problems that you'd normally expect to take days/weeks of work. It's this second group of people that assigns a much greater gravity to the capabilities, their slope, and various cyber-related repercussions.
TLDR the people in these two groups are speaking past each other. It really is simultaneously the case that OpenAI's free and I think slightly orphaned (?) "Advanced Voice Mode" will fumble the dumbest questions in your Instagram's reels and *at the same time*, OpenAI's highest-tier and paid Codex model will go off for 1 hour to coherently restructure an entire code base, or find and exploit vulnerabilities in computer systems. This part really works and has made dramatic strides because 2 properties: 1) these domains offer explicit reward functions that are verifiable meaning they are easily amenable to reinforcement learning training (e.g. unit tests passed yes or no, in contrast to writing, which is much harder to explicitly judge), but also 2) they are a lot more valuable in b2b settings, meaning that the biggest fraction of the team is focused on improving them. So here we are.
Constantine Frantzeskos retweeted
This is f*cking insane. Anthropic engineer:
"You're not supposed to prompt Opus 5.5
You're supposed to build a system that prompts itself. At Anthropic, 90% of our engineers have already built these systems"
In 30 minutes, she walks through exactly how Anthropic builds agents that remember, fix their own mistakes and get sharper with every run.
Better than any $1000-$2000 agent course I've seen.
Watch it, then read the article below ↓
Readers added context they thought people might want to know
Lamis never says "You're not supposed to prompt Opus 5.5” in here talk at AI Dev Con.
The caption misrepresents the video knowing most won’t watch the video all the way through and jump to the articles.
youtube.com/watch?v=tTcxVv…
Constantine Frantzeskos retweeted
Being a founder is weird.
$0 for months
Still wake up and build
Your family thinks you're wasting time.
Then one stranger pays you $5.
Facts matter
So, basically, 500 million Europeans expect 300 million Americans to protect them from 120 million Russians who can’t even defeat 40 million Ukrainians while those 500 million Europeans don’t even realize they are being conquered by 2 billion Muslims who claim they are being persecuted by 8 million Israelis. Is that about right?
1
Constantine Frantzeskos retweeted
we is so early
Mark Cuban says he showed a food CEO that ChatGPT could design a cheaper GLP-1-friendly alternative to his best-selling cookie in ~3 minutes (and the CEO had no idea AI could do it):
“I literally sat with the head of a consumer food company, and he was talking to me about acquisitions…because of GLP-1s.
I'm like OK, let's do this. Let's take your number one product, your cookie. I'm going to ask ChatGPT to create a competitor that is more GLP-1 friendly and will be priced lower. And I want a full bill of materials. I want sources, everything on manufacturing, what I have to do. In about 3 minutes we got back to him, and he was like, oh ****. He had no idea.”
What a smart, cohesive philosophy
Ioannis Samaras, head of coaching methodology for U14-16s on the development shift in Greece. Father of Georgios Samaras. Ioannis was born in Melbourne before moving to Greece in his teens & went on to play for OFI, Panathinaikos & the national team. His grandfather Georgios Samaras Sr was a co-founder of South Melbourne.
This is is pretty cool
We’ve raised $1.3M from YC & Afore Capital so you never have to type or speak again.
Typing is slow. Talking into your computer is awkward. Subvocal fixes both
Our glasses give you the speed of speech without you making a sound or touching a keyboard.
It tracks your internal speech muscles with non-contact sensing and decodes silent, almost invisible mouthing into text at more than 200 words/min.
Pre-orders are now live at:
subvocal.co/preorder?utm_sou…
This is a really important point
It’s almost incomprehensible how wide the distance is between someone who’s working at the frontier with AI and basically everyone else right now.
The crazy thing is these lines are not converging, but only growing farther apart. If the curve of AI progress had leveled off, it would certainly have given most people and companies time to catch up or implement their workflows in a standardized way. The technology would have neutralized competitive advantage because everyone would be using it the same way.
But what’s happened is the opposite. The curve of AI progress is basically going vertical right now, which means if you had codified your processes 3-6 months ago you’re likely already behind again. Now imagine most companies that kicked into gear a year ago and thought that they were done. Even further behind now.
I’ve never seen a technology in my life and career that improves at this rate, which consequently means you need to upgrade your expectations at a similar rate. Our brains weren’t wired for this, and our organizational change management processes certainly weren’t either.
With any form of recursive self improvement, things just get wilder. It’s a time when you will need to be constantly reevaluating the things that didn’t work just a couple months ago to see if they now can be solved. AI native companies certainly have a strong advantage due to this right now, so now it comes down to can the bigger companies keep up. Wild times.
Constantine Frantzeskos retweeted
Today's my first day at Binance as a DevOps engineer.
Everyone has been super welcoming.
Bloomberg reached out for an interview and gave me a link for the interview. Couldn't unmute and with their help installed a software to help.
Grateful for the warm welcome! Wish me luck!
Constantine Frantzeskos retweeted
Patrick Stewart in the final scene on Star Trek: The Next Generation.
It’s extremely simple, but reveals so much of his character if you watched. Somehow his sense of duty and sensitivity, along with the admiration of his crew shines through.
RIP Captain.
Constantine Frantzeskos retweeted
Founder life:
Monday: we're dead
Tuesday: we're so back
Wednesday: dead again
Thursday: one customer said yes
Friday: we are going to be a trillion dollar company
Constantine Frantzeskos retweeted
In 1999 you had to earn over 4x the minimum wage to be considered a higher earner on the 40% rate.
Today just 1.8x the minimum wage considered high earner!
If the same minimum-wage-to-high-earner ratio was applied from 1999 you’d have to earn over £115k before hitting the 40% income tax rate.
We’re seeing a level of wage compression that would make a Soviet era socialist blush.
































