【AI as a Defensible Moat】
Over the last decade, cloud and mobile technologies completely revolutionized the playing field for startups and industries alike. AI is now having a similarly disruptive impact, forcing founders and CEOs to rethink how they go about fending off competition and building a long-term sustainable business.
Defensible moats have traditionally come from:
-Economics of Scales
-Network Effects
-Deep tech/IP/trade secrets
-High switching costs
-Brand and customer loyalty
"AI-driven systems of intelligence present a huge opportunity for new startups. Successful companies here can build a virtuous cycle of data because the more data you generate and train on with your product, the better your models become and the better your product becomes."
Applications of AI have several moats inherently built in, from network effects to high switch costs. With more data, comes better insights, yields increasing value for the end user/customer, and ultimately driving a company's brand equity.
That said, building a defensible business is better thought about after establishing product-market fit. In the 0-1 phase, market validation and product iteration are of paramount importance.
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