Dan McCarthy | University of Maryland - The Unit Economics of AI - Can LLMs Actually Make Money?

"The Unit Economics of AI - Can Large Language Models (LLMs) Actually Make Money?"

A CMO Confidential Interview with Dr. Dan McCarthy, Professor at Maryland and leading practitioner of Customer Lifetime Value (CLV).

Dan shares how the CLV lens can shed light on the LLM drive to acquire customers, spend billions to improve the models, ultimately pay back investors and the potential implications on both marketers and consumers.

Key topics include:

- Why Gemini has a built in pricing advantage which forces all freemium offerings to be very good

- Why all companies should have a “diversity of providers”

- The rationale for constantly evaluating each model

- Why “AI foundational knowledge” is key to generating success from both employees and students.

Tune in to hear about the "customer barbell" and why you should “talk to your phone.”

This episode is sponsored by Typeface - the agentic AI marketing platform that turns one idea into thousands of on-brand assets. Learn more: typeface.ai/cmo

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