We Are In An AI Gold Rush — Beware the Shovel Sellers
Here is what you need to know
The world is currently experiencing a “Gold Rush” in Artificial Intelligence (AI).
The potential for AI to transform our world is immense, and this has created a surge of interest and investment in the field. While this is undoubtedly an exciting time, it is also a time of caution.
As with every Gold Rush, there are shovel sellers looking to capitalize on the dreams of others.
Here is how to protect yourself (and possibly strike gold).
What Is the AI Gold Rush?
The AI Gold Rush refers to the current period of intense interest and investment in artificial intelligence.
AI technology has rapidly advanced in recent years, and the potential applications for this technology are vast. From self-driving cars to medical diagnosis to virtual assistants, the potential for AI to transform our world is extraordinary.
This has led to a surge of investment, with companies and investors pouring billions of dollars into AI startups and research.
Just off the top of my head:
- ChatGPT
- Text to video
- AI avatars that can work for you
- Digital voice cloning
Honestly, it’s ridiculous. But gold rushes are always ridiculous. That’s what pulls the shovel sellers out in droves.
What Is a Shovel Seller?
The phrase “During a gold rush, sell shovels” originated after the California gold rush of the 1800s. It was observed that while many people who were looking for gold failed to make a profit, those who supplied them with tools such as shovels and picks were able to make a substantial profit.
In this context of the AI Gold Rush, the “shovel sellers” are individuals or companies who sell AI-related products or services, capitalizing on the hype surrounding AI technology.
Just like the California Gold Rush, while some people may strike it rich with AI, many may fail to make a profit, while shovel sellers who offer AI-related products or services may be the ones to profit the most.
Therefore — and this is the crux of the message I want to get across — it’s essential to be cautious of shovel sellers and to do proper research before investing in any AI-related products or services.
Every shovel looks and sounds good until you drive it into hard, empty earth.
Why Shovel Sellers Are Dangerous?
While some shovel sellers are legitimate, many are not.
Here are some reasons why shovel sellers can be dangerous:
- Capitalize on hope
- Sell false dreams
- Rebrand old scams
- Digital snake oil salesmen (and women)
Capitalize On Hope
Shovel sellers can capitalize on the hopes and dreams of individuals or companies who believe that AI can help them solve their problems or improve their bottom line.
They may promise that their product or service will help the customer achieve success quickly and easily, without a lot of effort or investment.
Hope is good. False hope is the worst kind of devil.
It feels like finding out you don’t have a parachute after you already jumped out of a plane.
Sell False Dreams
Shovel sellers may make grandiose claims about the capabilities of their product or service, promising to solve problems that are currently unsolvable or achieve results that are impossible.
They may use impressive-sounding buzzwords or jargon to impress potential customers without actually delivering any real value.
Rebrand Old Scams
Shovel sellers may repackage existing products or services as AI-related, in order to take advantage of the hype surrounding AI.
For example, a company may market an existing product as an AI-powered solution, even though the AI component is minimal or non-existent. Or they throw a product (like ChatGPT) into a basic outer layer that isn’t any better (and may be worse), then charge four times as much for it.
Yes, this is an actual example from a new product (that I won’t name). I got an urgent email for a limited-time lifetime offer.
I tried the product because I respect the person who emailed me.
The result? Good but I get better results by going directly through ChatGPT itself. You need the right prompts but you get better results with the actual source product, instead of paying hundreds or thousands of dollars for a third-party “knock-off.”
Dropshipping, YouTube automation, automated websites — no old scam is immune to rebranding with AI.
I’m just waiting to get an email from an AI-generated foreign prince promising to release a treasury of digital crypto if I just hand over my financial information…
Digital Snake Oil Salesmen
The bottom line: Shovel sellers may be outright fraudsters who are simply looking to make a quick buck off unsuspecting customers. They may sell products or services that have no real value or may even be harmful to the customer.
How To Not Fall For the Shovel Sales Pitch
If you’re considering buying an AI-related product or service, here are some tips to help you avoid falling for the shovel sales pitch:
- Do your homework (research your damn butt off)
- Look for real capability
- Don’t trust even usually trustable people
- Don’t be seduced by hype (It WILL sound good)
- Be wary of limited-time offers
- Watch out for red flags
Do Your Research
Before making any purchase, do your research.
Read reviews, talk to other customers, and investigate the company or individual offering the product or service. Look for evidence of past success or customer satisfaction.
Look for Evidence of Real AI Capabilities
Make sure that any product or service you are considering has actual AI capabilities, and that those capabilities are relevant to your needs.
Ask for specifics about how the AI works and what it can do, and be wary of vague or buzzword-filled answers.
Don’t Be Seduced by Hype
Be skeptical of grandiose claims and impressive-sounding jargon.
Remember that the real value of any AI product or service lies in its ability to solve your specific problem or improve your specific situation. Don’t be seduced by hype or promises of quick and easy success.
Even normally trustable people can get caught up by the bloated hype monster.
Be Wary of Limited-Time Offers
Shovel sellers love limited-time offers or special discounts to pressure you into making a quick decision. They don’t want you to look too closely at the shovel or the mirage they’re selling behind the shovel.
It’s shiny and sparkles in the sun.
That’s all they want you to know. They want you to grab the shovel on the run as you sprint blindly toward the glittering pot of gold at the end of a rainbow that always stretches just out of reach.
Don’t be rushed into making a purchase.
Take the time to fully evaluate the product or service and make an informed decision.
Watch Out for Red Flags
Be on the lookout for red flags such as exaggerated claims, vague answers, or unverifiable success stories. If something seems too good to be true, it probably is.
You can stick a shovel in that and smell the dirt.
There Are Opportunities for Genuine Shovel Sellers
While there are certainly dangerous shovel sellers out there, there are also opportunities for legitimate companies and individuals to capitalize on the AI Gold Rush.
Here is what you need to know.
Why
AI technology has the potential to transform virtually every industry, from healthcare to finance to transportation.
This creates a huge opportunity for companies and individuals who can develop or offer AI-related products or services that solve real problems and add real value.
How
To succeed as a genuine shovel seller in the AI Gold Rush, you need to offer a product or service that has real AI capabilities and solves a real problem for your customers.
This requires a deep understanding of the technology and the specific needs of your target market.
Tips
Here are some tips for succeeding as a genuine shovel seller in the AI Gold Rush:
- Focus on a specific industry or problem area and become an expert in that area.
- Partner with AI researchers or experts to develop your product or service.
- Be transparent about your product’s AI capabilities and how they can benefit your customers.
- Build trust with your customers by providing excellent customer service and delivering on your promises.
- If it’s not actually better than the source product (*cough* ChatGPT *cough*) don’t say that it is.
It also behooves me to point to this stern warning from the Federal Trade Commission (FTC):
AI hype is playing out today across many products, from toys to cars to chatbots and a lot of things in between. Breathless media accounts don’t help, but it starts with the companies that do the developing and selling.
We’ve already warned businesses to avoid using automated tools that have biased or discriminatory impacts. But the fact is that some products with AI claims might not even work as advertised in the first place.
In some cases, this lack of efficacy may exist regardless of what other harm the products might cause. Marketers should know that — for FTC enforcement purposes — false or unsubstantiated claims about a product’s efficacy are our bread and butter.
One Last Thing
The shovel is not the enemy.
It’s the shovel maker and the shovel seller. Selling shovels during a gold rush is a good idea if you tell the truth, build a good shovel, and genuinely help people shovel better.
Otherwise, you might get rich but at what cost?
If you’d like to get extremely rich really fast with no prior experience or money down, even if you have the IQ of an antelope and the skill set of a block of cheese, I’m not your guy.
But if that made you laugh, please go ahead and sign up for my Medium email list anyway.
