AI: The End of Information Arbitrage and the Rise of Signal Businesses
A new economy is emerging where human experience trumps the automated curation of information.
Something fundamental shifted in November 2022.
When ChatGPT launched, millions of entrepreneurs felt a cold chill run down their spines. Not because they feared robots taking their jobs but because they suddenly understood their entire business model had an expiration date.
If you've built a business on organizing information—whether that's through SEO content, web directories, comparison sites, or "best of" lists—you're not imagining the threat. It's real. And it's accelerating faster than most people realize.
(And I won’t even begin to talk about the threat to the SaaS model!)
But here's what fewer people understand:
This same disruption is creating an entirely new category of opportunity. One that AI can't touch. One that actually becomes more valuable as AI gets better.
I call these Signal Businesses. And they represent the future of human work in an AI-dominated economy.
The Day Information Became Free
For twenty(-ish) years, the internet has rewarded information arbitrage.
You know the model:
Find information users want
Organize it better than competitors
Optimize for Google
Monetize through ads or affiliates.
Whether you ran a recipe blog, a software directory, or a travel guide, the playbook was the same. Be the bridge between searchers and information. The curator.
This worked because information was scattered. Users couldn’t just spend all day searching for niche data. Google pointed them to you, and you pointed them to answers. You captured value by reducing friction.
But AI doesn't just reduce friction… it eliminates it entirely.
Watch what happens when someone uses ChatGPT or Claude instead of Google:
Instead of typing keywords, they have a conversation
Instead of clicking through ten sites, they get a synthesized answer
Instead of comparing multiple sources, AI does it instantly
Instead of generic content, they receive personalized responses
The information middleman, once essential, becomes invisible. Irrelevant. Eliminated. Bye-bye.
We’re watching this happen in real-time, and it will only accelerate:
SEO strategists who dominated keywords for a decade suddenly seeing traffic crater.
Directory owners watching users bypass their carefully curated lists.
Content farms that invested millions in "comprehensive guides" realizing AI can generate better ones in seconds
The gold rush of information arbitrage is over.
But we’re at the start of something far more interesting, as far as I’m concerned.
Because Here's What AI Can't Touch
A few months ago I had my own existential crisis about digital business models, because I was about to start a new one and didn’t know where to focus my attention.
But as researched, something became clear: AI can give everyone access to the same information, but it can't create new signal amidst the noise of content out there.
Nor can AI give you access to someone’s reputation, their network, personalized solutions, or the trust built by someone who spent years actually doing a thing.
AI can tell you the steps to overcome imposter syndrome, but it cannot feel what it's like to stand in front of 500 people, heart pounding, wondering if you belong on that stage.
AI can analyze market trends and suggest business pivots, but it cannot know what it feels like to shut down a company you poured three years of your life into.
AI can compile dating advice from a thousand relationship experts, but it cannot understand the particular vulnerability of putting yourself out there after a brutal breakup at 40 years old.
This gulf between information and experience is an undervalued category of value: signal.
The Rise of Signal
Signal isn’t a new concept at all.
Just like using a radio, we use media platforms to tune into the signal that actually plays music without all the static noise that doesn’t offer us any value.
But I daresay we’re entering a new environment for this concept to become ultra-valuable and help those who harness it flourish.
Signal isn't the experience itself—it's the bridge between someone who's lived through something and someone who needs guidance through it right now.
In our modern environment, signal is created with effective communication packaged in such a way that it can break through the noise of the internet. The social algorithms do the rest (for better or for worse).
Signal vs Data
Data: Raw information. Facts, figures, specifications, historical records.
AI has this covered. Sorry, humans.
Signal: A well-communicated message packaged as quality content that translates individual human experience for others. It's not just "I've been there"—it's "I've been there, here's proof it worked, and here are 50 other people doing it with me right now."
AI can simulate wisdom and even empathy. But it cannot replicate:
Your track record - The verifiable results you've achieved
Your network - The real humans who vouch for you
Your accountability - The fact that you have skin in the game
Your community - The peers learning alongside each other
When someone chooses your signal over AI's free information, they're not buying knowledge. They're buying:
Access to your network
Accountability to actually implement
Social proof that the path works
Real-time adaptation as situations change
The peer pressure of others succeeding around them
AI can describe these experiences. It can even simulate caring about your success. But it cannot stake its reputation on your results, introduce you to others on the same journey, or check in when you're about to quit.
That's signal. And that's irreplaceable.
Environmental Variables: Why Timing Is Everything
The most successful signal entrepreneurs understand something most business advice ignores: Context changes everything.
I call these shifting contexts "environmental variables"—the constantly moving conditions that determine what information matters and how it should be applied.
(This is pretty much how a niche is born.)
Think about it: The same business advice that worked in 2019 might be catastrophic in 2025. Not because the information is wrong, but because the environment changed:
They printed $6T in 2020, causing disruption downstream
Remote work went from perk to standard
AI went from sci-fi to everyday tool
Trust in institutions collapsed across the board
Signal entrepreneurs serve as weather reporters for their niche. They don't just share information, they tell you whether to pack an umbrella or not.
This is why a newsletter about "startup advice" might be replaceable by AI, but a newsletter about "bootstrapping in a high-interest environment by someone currently doing it" is irreplaceable. The first is data. The second is signal.
The Trust Equation
In a world of infinite content, trust becomes the only currency that matters.
I've identified a formula that every successful signal business follows:
Trust = (Expertise + Vulnerability + Consistency) × Time
Let me break this down:
Expertise isn't about credentials. It's about demonstrated experience. You don't need a PhD in nutrition to help people eat better, you need a transformation story and proven results.
Vulnerability is your competitive moat. It's sharing the failures alongside successes, the ongoing struggles alongside the victories. It's proving you're human in a world of polished AI personas.
Consistency means showing up with aligned messages and values. Not perfection, but alignment. Your audience needs to know what you stand for.
Time is the multiplier. Trust compounds. The longer you maintain authentic presence, the stronger your signal becomes.
This equation explains why someone with a simple newsletter and strong signal can outcompete million-dollar content operations. They're playing different games, and it’s already happening.
Five Types of Signal Businesses
Through studying dozens of the top creator-entrepreneurs over the years, I've identified five archetypes of signal businesses thriving in the AI age. Notice what they're actually selling:
1. Experience Curators
These entrepreneurs filter the information firehose through their unique lens. But their real product? Access to their taste and network.
Example: Justin Welsh doesn't just share LinkedIn tips. He's built a network of 700K+ followers who trust his filter. When he recommends something, it carries weight. His students aren't buying tactics, they're buying his credibility and the community of other solopreneurs implementing alongside them.
2. Community Architects
These leaders create spaces where specific tribes gather. The product isn't information; it's the other members.
Example: A community for "lawyers transitioning to creative careers" led by someone who made that exact transition. Members pay for access to peers on the same journey, job opportunities shared in private channels, and the accountability of monthly check-ins.
3. Transformation Guides
These mentors have walked specific paths and can guide others through similar journeys. They sell accountability and adaptive guidance.
Example: A fitness coach who lost 100 pounds doesn't just sell meal plans (AI can do that). They sell daily check-ins, form corrections, and the ability to troubleshoot when standard advice fails. Plus access to their community of others on the same journey.
4. Cultural Translators
These bridges help audiences navigate unfamiliar territories. They sell insider access and real-time intel.
Example: A Chinese-American entrepreneur doesn't just explain Chinese business culture. They provide warm introductions to partners, real-time translation of policy changes, and introductions to the dinners or galas where deals actually happen.
5. Philosophical Synthesizers
These thinkers help audiences make decisions through specific frameworks. They sell coherent worldviews and peer networks.
Example: A business strategist applying Stoic philosophy doesn't just write about Marcus Aurelius. They run mastermind groups where founders hold each other accountable to their values, creating peer pressure for long-term thinking.
(In particular, I’m thinking of podcaster Robert Breedlove’s men’s transformation retreats. His Bitcoin podcast has cast a wide net over the years—AI won’t be replacing any circadian-maxxing health retreats any time soon, and thus his podcast will remain valuable as a top-of-funnel signal to his leads.)
Notice the pattern? None of these businesses compete on information. They become niches of one based on results, accountability, and access.
Why Signal Businesses Win
AI doesn't threaten signal businesses—it amplifies them.
But not for the romantic reasons you or I might think… it's pure economics.
As AI-generated content floods every channel, people don't just crave "authentic human connection." They crave results. And results come from:
Accountability structures - Someone who actually cares if you succeed because their reputation depends on it
Social proof at scale - Not testimonials, but active communities where success is visible and contagious
Network access - The DMs, introductions, and partnerships that come from being in the right rooms
Implementation pressure - When you pay $5K for coaching, you're buying the commitment device, not the information
Real-time adaptation - Someone who can adjust the plan when your specific situation inevitably goes sideways
This is why signal businesses command premium prices in a world of free AI content. People aren't paying for information. They're paying for:
The right to text you when they're stuck
Access to your Slack/Discord where learning (or deals) actually happen
The peer pressure of a cohort moving together
Someone who loses reputation if they fail
AI can give perfect advice. But it can't create the social dynamics that actually drive change.
The Path Forward
If you're feeling the walls closing in on your information-based business, you're not wrong. But you're also not helpless.
The transition from information to signal requires a mindset shift:
Stop asking: "What information can I organize?"
Start asking: "What experiences can I share?"
Stop thinking: "How can I rank for keywords?"
Start thinking: "How can I build trust with my people?"
Stop optimizing: "How much content can I produce?"
Start optimizing: "How deeply can I serve others?"
This isn't about becoming an influencer or building a personal brand. It's about recognizing that in an AI world, your humanity isn't a limitation—it's your only sustainable advantage.
(It’s also a beautiful thing, but we’ll save that for another post.)
The Question That Matters
The AI revolution forces us to confront a fundamental question: What value do humans provide that machines cannot?
The answer isn't in competing with AI on information processing. It's in offering what only we can give: wisdom born from experience, judgment shaped by values, and connection grounded in shared humanity.
The signal economy has arrived. The entrepreneurs who thrive won't be those who organize the most information or optimize the best keywords. They'll be those who show up authentically, share their hard-won wisdom, and build genuine trust with communities who need exactly what they offer.
Information wants to be free. Signal commands a premium.
The only question left is: What's your signal?
In the end, the vibe revolution isn't just about building apps. It's about building the future on your own terms. Start with forming your signal.
Come join the discussion in the VibeBuilders.ai Discord!