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So here is an excellent example and interesting race condition that is developing in AI applications and venture-backed startups: what is truly AI-resilient eno
by jschveibinz 20d ago
So here is an excellent example and interesting race condition that is developing in AI applications and venture-backed startups: what is truly AI-resilient enough to invest millions of dollars in a "land grab"--when the land is literally falling away with each passing day.
There is no doubt that AI will be helping to run businesses. But, there is also little doubt that existing businesses will have the wherewithal to develop the proprietary tools they need to do this work--without needing to buy it from others.
With respect to scope, it is not an overstatement to say that developing trust in AI tools enough to allow them free reign over critical business workflows may be a bridge too far. Look at self-driving car technology--that last 10% is really, really hard. So adoption will be slow and methodical.
There are no secrets. The basic model for starting and running a business (or a project) is straightforward. I like many of you have developed my own models (using AI assistance) for doing this and have been testing for months. And I like many of you have 30+ years of small business experience to back up my models.
This says nothing about the R&D happening at every major corporate & professional software services company in the world right now using the same AI tools to build their own solutions--let alone the enterprises who would be customers doing exactly the same thing.
So there is an enormous amount of competition and what I am calling a "race condition" between the crowd trying to disrupt professional services with AI-developed software and the crowd already in professional services software e.g. SAP and business in general that is doing the exact same thing--with more capable tools, more staff and much more R&D funding.
For the big companies, it's a race to survive.
Investors in startups have a tough decision to make on these small startups that have so little moat and so little prior knowledge and experience.
As an angel investor myself, I am skeptical of investing in any kind of software right now--and maybe forever.
On the plus side, every freelancer now has the power (and responsibility) to optimize their own offerings.
It's going to be very, very interesting...
- 2001zhaozhao 20d agoThere is one big wrinkle in existing firms trying to adopt the kind of near-full AI business automation mentioned here: internal people and groups will strongly resist it as it's an existential threat to their interests. See what happened at Meta as an example. To bypass this, the company would pretty much have to run a parallel AI org alongside their main human one, but at that point they are almost on even footing with startups in a lot of ways, as anything the AI org builds is orthogonal to the existing human business. And you probably won't have a competent and extremely motivated founder spearheading it all.
- jschveibinz 20d agoThat's very plausible and a good point!