Somewhere in your organization there is a slide claiming that agentic CX is about to get cheap. I bet, there is. It has a line heading down and to the right, it cites the collapse in token prices, and it is not lying about the collapse. Token prices really have fallen off a cliff. Still, the slide is wrong, Why? Because what you are buying is not tokens. It is workflows, and workflows have learned to consume tokens faster than tokens get cheaper. That is the inference paradox that Gartner Group talks about: the unit price falls, the invoice climbs, and neither number is a mistake. The Price Collapse Happened Somewhere Else Start with the part the vendors get right. Compiled inference-cost data from a16z, Epoch AI and Stanford's AI Index puts GPT-3-equivalent quality at roughly $60 per million tokens in late 2021 and about $0.06 by late 2024, a thousandfold drop, with price-performance improving at a median 50x per year and closer to 200x per year since the start of 2024. Goldm...
- CRM (and other) Thoughts from Down Under