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I would say your neighbors are the perfect use case for AI. AI can understand human language. Your neighbors probably never were able to use Google for search, compare flight tickets online, Wikipedia etc. Give your neighbors something like Alexa powered with better AI, and they are sold.
Having dealt with many family members just like this, I can tell you they certainly can use Google for search, they just don't want to. When forced to they use it fine.

If I were to guess, a lot of people, particularly older people, see computer use outside the web browser as an amateur might a chop-saw; a dangerous tool not to be used by inexperienced hands, so an AI that can also directly do the tasks for them might solve that problem (assuming it came preinstalled or someone else did that for them). Though then comes the question of whether they'd be willing to pay for it

Plus hallucinations. Most "regular people" questions aren't inherently easy to verify. And when regular people do have to verify the answers, the value of "AI" drops like a rock.
> Having dealt with many family members just like this, I can tell you they certainly can use Google for search, they just don't want to. When forced to they use it fine.

Exactly! I noticed this when I moved out of my parents' house, when suddenly my mom became an electronics whiz who can hook up VCRs and TVs just fine. I always thought I was the smart person in the house, but now I realize I was just taken advantage of.

'Taken advantage of' is very negative framing. Maybe it was just a normal instance of specialization of labor!
In the US, roughly 95% of AI users do not pay for it. So, they are sold, but only for the free tier. Technology is there, money are not.
Heck I use copilot at work and use M365 copilot chat for a lot of short things and small scripts and tools over credits in Github Copilot. At home I throw things things into copilot chat free, google AI, and more to avoid cost.

Then all the real AI work I'm using my local setup on dedicated hardware for large local models. I have usede my Copilot pr sub a few times this month to check work but it's either:

1. I ask about bugs and security fixes, glaring holes, and other checks before calling the work complete and posting a release to my persona github. 2% credit usage over 20 minutes and useful small changes. 2. I ask about information in a repo I'm using, like GUFO or Halogen-flash-next, and some key info. 35% of my monthly premium credits gone before the one chat completes.

How can 20 minutes on a whole custom project looking for bugs and issues use almost nothing, then a question about a repo eats 30%+? I don't even have budget to learn how I failed as 2 more tests and I'm burned on premium requests for the month (in minutes).

So I abuse the free options for everything I can. Draft scripts/sql/etc, stage prompts or handoff/etc files, ask questions or research something and pass on to vs code/copilot chat/etc like I run at work (with much more credits through the enterprise plan).

Based on my experience, you’re right. I know a woman in her late 60s that is basically tech illiterate (can barely send an email), and she has been making effective use of the ChatGPT free plan. AI has been helping her cut through the noise of navigating the web in 2026 (which in her defense is often a bewildering experience). It can’t help her with everything yet, but it’s a clear boost to her independence online.
> Give your neighbors something like Alexa powered with better AI

Didn't they literally try this and it failed miserably?

"Alexa but better" is not a profitable business. Amazon profits from Alexa being in people's homes, not from people buying Alexa.

I'd say the exact opposite. People who have no idea how technology works shouldn't touch AI at all. "AI can understand human language" is fundamentally false, and it leads people to actually believe AI is "AI" and not just a token predictor.

These people WILL fall victim of their own ignorance and upload all their private information to an AI chatbot.

i dont know about that, they could've adopted using google which you could already search things in pretty much natural language and even got youtube snippets how fix your problem... so i'm not convinced they will adopt
There is no "honest" AI though. It is always biased towards its prompt and ultimately its training data.

Compare flights? You have to assume it is objective and not tainted by corporate bias or backroom deals(aka ads and sponsored content), unless you selfhost and find an objective model.

Search Wikipedia? You have to constantly check that it is giving you straight facts instead of being constrained by its community and safety guidelines.

The problem with so many of these usecases is treating AI as a super intelligent Vulcan who is always logical and objective aka Spock, when we are better off treating it as if it is a salesman.

This is all true, but which travel booking assistant is really unbiased? Online comparison sites might not be, the good old 'brick and mortar' travel assistant most likely isn't either.
You don't need an unbiased one. Only someone who cares about the consequences of getting caught while being blatantly unbiased.

Your neighborhood brick and mortar, or an online one may care about that while a faceless trans-national big tech will not even register that you left.

agree. That's why i love models (agents) that just search the web get the answer and use tools to their disposale instead of guessing based on training data which is outdated anyway...
Also, their neighbors are also the exact exemplars of what two generations later will look like. There isn't a lot of hard data on what AI usage might look like, but there is data on tech literacy, and the numbers are clear: We trained precisely -ONE- generation that actually understands computers. The incoming one will happily gobble up all the AI, same way they gobbled up willful ignorance of filesystems. Much like there is a button that corresponds to "gimme shot videos", there will be a button that corresponds to "Listen to what I'm about to say, and do it".

Demand will not stop in the next 20 years.

By "understand" you must mean uncannily appear to understand while creating a plausible human readable response. Except when the knowledge remixer glitches and produces nonsense, or worse still, gaslight the user with confident misinformation. At which point they've got problems much more baffling than how to print out their tax return with the printer they haven't used in three months.
Now tell them it costs $100/month and, eh, not so much.
They need less than $20/month though. Probably just a free tier with ads. That gets you google.
Right. So my worry – inasmuch that I worry for the state of the global economy – is that this doesn't generate valuations that match the current hype.

There's so much ad money to go around. It currently fuels Meta and Google. Let's say Anthropic and OpenAI enter the field and take a slice. That's a fine business, sure. But does it justify the state of the market?

> ad money/free tier

And at what cost to the underlying quality of the product and its utility, and will that cost be acceptable to the end users?

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> AI can understand human language.

It is a bit comical how the HN crowd spent the last number of decades trying to convince the audience that a programmer's value was actually in their system thinking, not their arcane knowledge of a particular language, but now that the language barrier is removed it turns out it was just the arcane language knowledge after all...

Although I'd posit that the old school HNers were the ones actually right. From what I see in the average Joes is that, while they can communicate with AI, they don't really see how to leverage it. Granted, the younger generations grew up in a school system that tried to promote system thinking more so than in the past, so that gap will likely shrink over time.