[comp.ai.digest] AI Marketing

Laws@KL.SRI.COM (Ken Laws) (10/15/87)

Part of what we are seeing in AI is the evolution from horizontal to
vertical marketing.  Vertical integration (i.e., applications) had to
wait for the horizontal suppliers to develop their machines and software
-- with the exception of a few early systems such as Dendral and R1/XCON.
The horizontal market has saturated, though, partly because it is much
easier to develop a general-purpose system than it is to really understand
a customer's applications and needs (in addition to developing an AI
system capable of handling previously unsolved problems).  Unless some
new market opens up -- business, military, educational, or consumer --
the horizontal companies have now sold to everyone interested in buying.
The companies that will survive are the ones cultivating vertical markets
such as warehousing or the printing industry.  In some cases these companies
are now offering higher priced software with reduced functionality, but
with vocabulary and customer support aimed at a specific industry.  In
other cases the applied systems have not yet become visible simply because
it takes a long time to turn a general tool into a useful tool.  Expert
systems are not dead; the successful ones are just going through another
development cycle.  The resulting proprietary systems will be hyped in
the trade journals rather than the research journals, and will be part
of the commercial woodwork from now on.

					-- Ken
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