AI costs keep dropping while capabilities rise (classic tech curve).
AI is getting better and cheaper—revisit what's now possible.
What changed
• Per-token costs dropped 60-80% while capabilities improved
• Previously expensive use cases now economically viable
• Competition driving continued price pressure
Who it affects
• Budget-conscious builders
• High-volume applications
• Anyone who avoided AI due to cost
What to do now
• Re-evaluate use cases you shelved as too expensive
• Test upgrading to better models at new pricing
• Build with assumption of continued cost decreases
• Monitor provider pricing updates quarterly