BusinessAugust 26, 2026

commoditisation

kuh-MOD-uh-tuh-ZAY-shun

Definition

The process by which a good or service becomes indistinguishable from those offered by competitors, leading to a market where price is the primary factor rather than unique features.

Etymology

Derived from the word commodity, which comes from the Old French 'commodité' and Latin 'commoditas' meaning convenience or fitness. It refers to the economic trend of transforming specialized goods into widely available, uniform products.

In the news

The article mentions AI commoditisation as a risk for Paycom, warning that if their AI tools become standard and undifferentiated, it could pressure their pricing power.

Paycom Software (PAYC) Rallies On AI And Automation Narrative As Valuation Questions Linger

Read the full article ↗

Simply Wall Street

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