SenseTime predicts shift from token to task economy as AI token prices drop

Xu Li, the CEO of SenseTime, anticipates a shift in AI commercialization from a 'token economy' to a 'task economy' as token values are expected to fall, reminiscent of telecom data pricing two decades ago. During his address at the World AI Conference (WAIC) in Shanghai, he explained that once foundational models and computing power become standard infrastructure, genuine commercial value will arise from users paying for intricate tasks, such as evaluating architectural plans or creating product videos, instead of merely for computing power. Currently, major Chinese AI firms depend heavily on the token economy, with daily AI token usage in China skyrocketing over 1,000 times in the last two years. Xu highlighted that AI coding is the leading cash flow generator, but significant advancements will emerge in work and design contexts, potentially increasing the total addressable market by at least tenfold. He asserted that substantial industry transformations can lead to tenfold changes at pivotal moments, with demand extending from professionals to the general public.