Will AI lead to abundance? Exploring cost reductions from streaming to tokenized technologies
Year: 2025
Type: article
Abstract: Services and legacy entertainment technologies. Using a quantitative framework grounded in inflation adjusted pricing, Compound Annual Growth Rate (CAGR) calculations, and regression modeling, the analysis highlights how AI token pricing shows rapid declines, in some cases outpacing streaming services and older technologies. For instance, OpenAI’s GPT-3.5 Turbo exhibited a substantial cost reduction within a short span, contrasting with the decades-long trajectory required by streaming services to reach similar affordability. Regression analysis suggests that technological scalability and competitive pressures play pivotal roles in these reductions, with AI tokens showing a stronger negative correlation (R2 = 0.95) than streaming services (R2= 0.71). While AI tokens can lower operational costs and foster innovation, challenges such as market volatility and sustainability persist. Overall, this research underscores how emerging tokenized pricing models could reshape market dynamics, consumer access, and economic structures in the digital era.
Source: Finance Research Open
Author: Mfon Akpan
Institution: Methodist University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,000
OpenAlex ID: W4413364231