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.

Users are dissatisfied with purely AI-generated creative outputs like interior design, calling it "slop." This creates an opportunity for platforms that blend AI's efficiency with a human's taste and curation, for which consumers are willing to pay a premium.

AI video tools like Sora optimize for high production value, but popular internet content often succeeds due to its message and authenticity, not its polish. The assumption that better visuals create better engagement is a risky product bet, as it iterates on an axis that users may not value.

AI enables rapid book creation by generating chapters and citing sources. This creates a new problem: authors can produce works on complex topics without ever reading the source material or developing deep understanding. This "AI slop" presents a veneer of expertise that lacks the genuine, ingested knowledge of its human creator.

Generative AI allows any marketer to quickly produce mediocre content. This saturation makes buyers more discerning and creates a significant opportunity for brands that invest in genuinely excellent, insightful content to stand out and build trust. Quality, not quantity, becomes the key differentiator.

Labs are incentivized to climb leaderboards like LM Arena, which reward flashy, engaging, but often inaccurate responses. This focus on "dopamine instead of truth" creates models optimized for tabloids, not for advancing humanity by solving hard problems.

Companies racing to add AI features while ignoring core product principles—like solving a real problem for a defined market—are creating a wave of failed products, dubbed "AI slop" by product coach Teresa Torres.

The true commercial impact of AI will likely come from small, specialized "micro models" solving boring, high-volume business tasks. While highly valuable, these models are cheap to run and cannot economically justify the current massive capital expenditure on AGI-focused data centers.

Startups flooding the internet with AI-hosted podcasts are exploiting a business model based on ad arbitrage, not content quality. By reducing production costs to ~$1 per episode, they can profit from just a handful of listeners via programmatic ads. This model mirrors early SEO content farms and will likely collapse once distribution platforms update their algorithms.