Social platforms are declining as places for genuine connection, shifting to AI-generated 'slop' and content from strangers. Their business model remains viable not by improving the user's social experience, but by using AI to become so effective at ad targeting that even mindless engagement is highly monetizable.
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The internet's value stems from an economy of unique human creations. AI-generated content, or "slop," replaces this with low-quality, soulless output, breaking the internet's economic engine. This trend now appears in VC pitches, with founders presenting AI-generated ideas they don't truly understand.
As AI-generated content and virtual influencers saturate social media, consumer trust will erode, leading to 'Peak Social.' This wave of distrust will drive people away from anonymous influencers and back towards known entities and credible experts with genuine authority in their fields.
Gary Vaynerchuk argues that platforms have evolved beyond a follower-based model ("social media"). Now, algorithms dominate, creating an "interest media" landscape where content is surfaced based on a user's demonstrated interests, regardless of whom they follow. This makes the content itself paramount over follower counts.
AI is creating a fork in marketing strategy. It disrupts traditional demand acquisition channels like search, making it harder and more expensive to get measurable traffic. Simultaneously, it provides powerful new tools to monetize existing demand more effectively. This forces a strategic shift from a volume-based to a value-extraction model.
Algorithms increasingly serve content to non-followers based on their interests, not just social connections. To succeed, marketers must shift from engaging existing followers to creating "recommendable" content that appeals to a broader, topic-focused audience.
The core business model of dominant tech and AI companies is not just about engagement; it's about monetizing division and isolation. Trillions in shareholder value are now directly tied to separating young people from each other and their families, creating an "asocial, asexual youth," which is an existential threat.
Analyst Eric Sufert predicts OpenAI's ad model will not be anchored to the content of a user's query, which could compromise trust in the answer's objectivity. Instead, it will function like Instagram's feed, where ads are targeted based on a user's broader conversion history, independent of the immediate conversational context.
The proliferation of AI agents will erode trust in mainstream social media, rendering it 'dead' for authentic connection. This will drive users toward smaller, intimate spaces where humanity is verifiable. A 'gradient of trust' may emerge, where social graphs are weighted by provable, real-world geofenced interactions, creating a new standard for online identity.
The 20th-century broadcast economy monetized aspiration and sex appeal to sell products. Today's algorithm-driven digital economy has discovered that rage is a far more potent and profitable tool for capturing attention and maximizing engagement.
A huge portion of the market, dominated by social media and AI companies, connects shareholder value directly to enragement and isolation. Algorithms are designed to sequester users and serve them content that confirms biases or angers them, keeping them engaged.
