Amazon Basics, but for intellectual property.

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Amazon has been accused several times for ripping off merchants on its platform. And every single time they denied any wrongdoing.

A merchant, or anyone really, can create a product (or source it from China), then resell it on amazon. Amazon is the service provider, and hosts all the metrics concerning the products. If Amazon themselves were in the business of creating and selling products, then that creates a potential of conflict of interest. Because they have the data of all products that sell and sell well. They could replicate that success without doing any further research since the merchant has already confirmed the existence of demand.

It's not surprising that Amazon Basics quickly became the best selling "private-label brand" on Amazon. They already know what sells because they have access to the data. Yet they continued to deny it, and state that they only ever use publicly available data from sellers.

An Amazon spokesperson said the company believes the allegations are "factually incorrect and unsubstantiated," adding that Amazon strictly prohibits the "use or sharing of non-public, seller-specific data for the benefit of any seller, including sellers of private brands."

Yet the results are right there for all to see.

If you sell any product through Amazon, you are exposing your company's operations to them. If you want to keep that information to yourself, then you don't get to reach your customers, which in reality are Amazon's customers.

If you want to buy something online, and get it shipped as quickly as possible, then Amazon is a blessing. Most often than not, you are not buying the product directly from Amazon. An independent store or vendor with a presence on Amazon will fulfill your order. The seller only has minor identifying characteristics on the platform. On the search result page, the space designated to the seller is small and insignificant. The customer has very few reminders that products are offered by anyone but Amazon. (Although if you want to dispute a sale, you are starkly reminded that the item is from a 3rd party vendor.)

So there is no surprise when companies embrace AI internally, they are putting themselves at the risk of sharing their product with their competitors. Maybe the most obvious example is when Antropic came up with Claude Design. A tool to help users generate designs, wireframes, etc. Kinda like Figma.

That's not a problem on its own, but when Antropic's chief product officer sits on Figma's board of directors, you can't say that there isn't a conflict of interest there. In fact, the chief product officer resigned from the board merely days before Claude Design was announced. He basically extracted all value from Figma then resigned. Figma's AI features are built on top of Claude. So Anthropic literally pulled an Amazon Basic on Figma.

When companies force their own employees to use AI to do their day to day work, they are basically asking employees to upload company data to a 3rd party that may become a competitor. Sure something in the contract clause says that the AI company won't train on enterprise customer data, but nothing stops them from peaking at successful product data.

Whenever someone tells me that they used AI to build an app and boast of its values or uniqueness, I want to remind them that if you can just prompt-create a product, so can the AI provider. In fact, they might have better resources to create a competing product if it displays any sign of success (see Figma).

While it looks like plenty of people are benefitting from AI today, all this information is being shared with AI providers. We are giving them full access to our thought process. When you include them in your workflow, you are basically providing them with a step by step approach on how to do your job.

Don’t be surprised when you see a native Antropic/OpenAi project management application suite. Or a CRM, or any software that is trying to integrate with AI and may experience success.

A few years back, when I worked in Customer Service Automation, we discovered that most companies used Zendesk to manage their customer service. Since customers mainly contacted support via email, an intentional database had been built that tracked users through their shopping experience throughout the web.

While so much could be done with that data, like identifying “problematic” customers, or recommending products based on their history, we ended up finding something more helpful. We could easily detect a pattern of issues for certain shipping carriers. We could see when UPS was having delays in certain cities, or when Fedex was having technical issues when updating the last mile status. None of these things were features designed or provided by anyone. However, having access to businesses’ data gave us insight where we had none before.

That became a feature for us, only because we were not competitors to all...