For centuries, price has been a signal of quality. Generative AI is breaking that rule in dozens of sectors

Europe's digital policy landscape is undergoing significant shifts as generative artificial intelligence increasingly disrupts traditional economic models. Historically, price served as a reliable indicator of quality, with higher costs often signaling superior craftsmanship or expertise, as seen in luxury goods or professional services. However, the advent of generative AI is fundamentally challenging this long-standing correlation across numerous sectors, impacting how value is perceived and delivered in the digital economy. Generative AI tools can now produce high-quality outputs, such as logos or market analyses, at a fraction of the cost and time previously required. This democratization of creation means that a sophisticated logo can be generated for a nominal fee, indistinguishable from one costing thousands. Similarly, in-depth market research can now be performed by individuals proficient in AI tools, potentially surpassing the output of traditional, expensive consultancies that may rely on less experienced staff. This technological advancement forces a re-evaluation of how value is communicated and assessed. With price no longer a consistent proxy for quality, consumers and businesses will likely shift their focus to other indicators. Questions surrounding the creator's expertise, the specific methodologies employed, and the level of human oversight will become paramount, positioning the development process itself as a key differentiator and product attribute in the evolving digital marketplace.
Curated and translated by Europe Digital for our multilingual European audience.
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