Did GPTs kill AI Automation Agencies?

Did OpenAI just kill AI Agencies?

AI Automation Agencies are officially dead, is what you'd THINK I'm about to say but that's not the case at all. I think the past few days there's been a lot of misinformation going around out there regarding the future of the AI Automation Agency business model and for good reason.

Today, I'm going to break it all down for you, what it means for your business as a whole and what you can do to pivot, adjust and continue to thrive, so let's dig into this bad boy.

Now if you're not already in the loop, OpenAI recently hosted it's very first developer day where they made some very exciting announcements specifically in two areas, First of them being with GPT 4 Turbo with the model being available in the API now and it should be coming to pro users as well soon.

But the second announcement is somewhat what took AI Automation users through a loop, that is the announcement of GPTs. GPTs put simply allows users to build their own customized version of ChatGPT right there within the app.

They can prompt it, they can upload files to their knowledgebase, they can use it with plugins and they can even integrate it directly with Zapier.

So what does this mean in a nutshell? It means that OpenAI just took this entire market of GPT-wrapped start-ups, 3rd party services and low quality agencies and devoured them.

This, rightfully so has a lot of AI Agencies worried that now their clients are just going to use GPT instead of hiring them to build Chatbots.

Now I am going to be 100% real and honest with you here, if you are an AI Automation Agency and you only build GPT wrapped chatbots with very basic and limited functionality and that's ALL you do, I do think you're in the worst position.

Because what's essentially happening is that OpenAI is lowering the barrier of entry into this space, and if you're at that lowest barrier, then well you know.

But even so you're not completely dead in the water and I want to take the moment to break down some points that will hopefully change your perspective.

Barrier to Entry

First, the barrier to entry. Yes the barrier to entry just got a lot lower, this means as an agency owner you have to have an increased quality of service.

But the reality is, if GPTs was enough to replace your entire operation, you need to focus on expanding your skill set and delivering higher quality work.

On the other hand though, this wipes out a LOT of your low quality competition and legitimizes AI Automation Agencies as a whole.

The AI space is riddled with low quality products at the moment, so this mitigates that and refines everything as a whole.

Technical Knowledge

Second, the reality is that as low as the barrier is right now, there are still millions of business owners that need help implementing this technology on some level.

There are hundreds of thousands of businesses that don't even have email marketing set up, they're stuck decades behind and they need your help to catch them up to speed

Because with the speed at which AI is moving, they're going to get left behind and fast. So it's your duty to help them implement the technology.

Time Constraints

Third, GPTs are great, they're easy to use, quick to set up, the whole nine yards.

However there is still a degree of technical knowledge required, especially when it comes to setting them up with Automations & integrating them into established businesses with complex systems

Most business owners aren't going to have the time to sit there and figure out where they should implement a GPT or try and build one for themselves, they're going to want to hire out and that means hiring you as well.

GPTs Capabilities

Fourth are the capabilities of GPTs. They can be trained to some extent but when the outputs need to be creative like Newsletters or Copy generation, the output of GPTs simply cannot compare to a Fine-tuned model.

Fine tunes are time consuming and require a much higher degree of technical knowledge compared to GPTs but their quality of output is 1,000,000x better than GPTs and it's still something that businesses are going to pay a lot of money for because they can't do it themselves.

New Services & Ease of use

Fifth and last are the new potential services that are open to you now as an Agency owner, not only can you build basic GPTs for business owners for various use cases but these can be continuously upgraded over a period of time which makes them perfect for a recurring revenue model.

Not to mention you don't need to build like crazy in 10 different 3rd party software anymore, you can just get the work done right there in ChatGPT which streamlines the workflow like crazy.

This makes it easier for you to build a high quality product, in less time so that you can provide greater value which is a win in every direction in my opinion.

Overall Takeaways

There is a lot of information here of course, but what are the overall takeaways of all of this?

• As an AI Agency owner this a massive opportunity for you to add new services, improve the quality of your delivery and adopt new technology

• If you're running an agency in the tech space, you have to be ready for changes like this in the blink of an eye, it's important to stay adaptable and pivot as necessary

• It's important to make the effort to understand new technology like this as fast as possible and to see where it can benefit our businesses

• You as an agency owner are PERFECTLY positioned to be the first to make money from selling GPTs and implementing them for business owners

• This is a great time to take a look at your services and ask yourself if you're really providing the best quality service you can provide or if you're just trying to make a quick bag selling chatbots

  • A good follow-up question to this is asking yourself, would you buy from you?

Overall this a massive opportunity of AI Automation Agency owners and it's the perfect time to be in the loop, so over the next few weeks you can definitely expect some GPTs focused videos.

Until next time,

Zoro