Extract from https://businessengineer.ai/p/ai-business-models-bookTable of Contents: Excerpts from "AI Business Models Book"I. Introduction: The Current AI Revolution* This section introduces the concept of AI as a collaborative tool and highlights the transformative impact of artificial intelligence on business. It emphasizes the growing integration of AI in various sectors and its potential to reshape the future of work.II. The Path to Generalized AI* This section explores the technological advancements that have enabled AI to evolve from narrow applications to more generalized capabilities. It discusses the role of unsupervised learning and delves into the significance of the Transformer architecture, developed by Google, in revolutionizing text processing and AI development.III. Shifting Paradigms: From Search to Generative AI* This section highlights the shift in information processing from traditional search-based models to pre-training, fine-tuning, prompting, and in-context learning approaches. This transition, driven by AI, is presented as a paradigm shift that will make traditional search methods obsolete.IV. The Evolving AI Ecosystem* This section discusses the transformation of the AI ecosystem, focusing on the transition from narrow software to more open-ended and generalized applications. It also notes the shift from CPUs to GPUs in hardware, fueling the AI revolution.V. Transforming Consumer Experiences* This section examines how AI is changing consumer experiences, highlighting the move from static, non-personalized content to dynamic, hyper-personalized experiences driven by AI. It emphasizes that this shift is already impacting millions of users globally.VI. Deconstructing AI: The Three-Layer Theory* This section introduces a framework for understanding the AI industry's trajectory: The Three Layers of AI Theory. This framework categorizes AI into foundational, middle, and app layers to illustrate its development and future potential.VII. The Foundational Layer: General-Purpose AI Engines* This section delves into the first layer of the framework - the foundational layer. It describes this layer as consisting of general-purpose AI engines like GPT-3. Key features of this layer, such as multi-modality, natural language processing, and real-time adaptability, are discussed.VIII. The Middle Layer: Specialized Vertical AI Engines* This section focuses on the second layer - the middle layer. It describes this layer as being comprised of vertical AI engines that specialize in specific tasks, such as AI lawyers or marketers. It further emphasizes the role of data moats in creating differentiation and the potential for these engines to replicate corporate functions.IX. The App Layer: Specialized Applications Built on AI* This section examines the final layer - the app layer. It defines this layer as consisting of specialized applications built on top of the middle layer. It underscores the importance of network effects and user feedback loops in driving the success of these applications.X. Defining AI Business Models: A Four-Layered Approach* This section introduces a four-layered framework for analyzing AI business models. It emphasizes AI's role as a connector between value creation and distribution.XI. Foundational Layer: The Technological Paradigm* This section explores the first layer of the AI business model framework, focusing on the underlying technological paradigms. It categorizes them based on the use of open-source, closed-source,