The AI Business Model Crisis: Real Tech, Real Spending, Unreal Returns
The Elephant in the Room: AI's Business Model Problem
The most thought-provoking thread of the day came from Hiten Shah, who articulated what many in the industry have been feeling but struggling to name:
"The tech is real. The progress is real. The spending is real. The business models aren't. Not yet."
This sentiment was echoed by @Genuinrisk, calling a related analysis by @sytaylor "absolutely phenomenal" and noting:
"We are using tomorrow's tools (powerful but still in its most primitive form) in old business models."
This is perhaps the most important conversation happening in AI right now. The gap between capability and commercialization continues to widen—companies are building increasingly powerful systems while still searching for the revenue models to sustain them.
Practical AI Tools Shipping Now
While the business model debates continue, developers are shipping useful tools:
Documentation Indexing for AI Coding AssistantsDaniel Jeffries released a tool that addresses a real pain point for developers using AI coding assistants:
"Basically it's a tool that spiders docs into a single md file and then I tell Composer to make a 'grep index' of the file. The models are good at doing it."
This solves the context window challenge by pre-processing documentation into a format that's easily searchable and consumable by AI models.
Automated n8n Workflow DeploymentAlton Syn highlighted Synta's new MCP for n8n automation:
"It DEPLOYS them directly into your instance. No JSON. No copy-paste. No 3-hour setup that breaks."
The shift from "AI generates code you manually integrate" to "AI deploys directly" represents a meaningful evolution in practical AI tooling.
Building AI Agents from Scratch
Philipp Schmid shared Python code for building a CLI AI agent using Gemini 3 Pro. These foundational tutorials remain valuable as the agent ecosystem matures—understanding the basics helps developers make better architectural decisions when choosing between building custom solutions and adopting frameworks.
Creative AI: Gemini's Nano Banana Pro Takes Off
Multiple posts showcased creative applications using Gemini's image generation:
YouTube to Infographic Pipeline (Paul Couvert):Art Generation for Blogs (Daniel Miessler):"You can turn any YT video into an infographic using Nano Banana Pro in Gemini... Gemini can access the video just using the URL."
Hand-drawn Cheatsheets (@godofprompt):"I built a @claudeai skill that takes any input and converts it into different kinds of art for my site using Nanobanana 3.0."
"Turn this text into hand drawn cheatsheet image with key concepts."
The creative AI space is rapidly becoming more accessible, with simple prompts enabling sophisticated visual outputs.
The Solo AI Business Path
Damian Player offered practical advice for those looking to monetize AI skills:
"Pick your path: solo developer (waste), find a development partner, or white-label fulfillment. Choose one niche with real problems WORTH solving. Think time saves or money back."
The emphasis on "time saves or money back" as the value proposition filter is a useful heuristic—AI solutions need to deliver concrete, measurable value to sustain a business.
Key Takeaways
1. The business model question is becoming unavoidable - Technical progress alone won't sustain the industry
2. Developer tooling is maturing - From documentation indexing to automated deployment, the friction of working with AI is decreasing
3. Creative AI is democratizing - Simple prompts now produce professional-quality visual content
4. Focus on measurable value - Whether building or buying AI solutions, the "time saved or money returned" test remains the best filter