Startups typically have an advantage over incumbents when it comes to adopting new technology. With artificial intelligence however, incumbents are fast to integrate LLMs and have the data needed to make better AI-powered products. For example, an established CRM platform has the data needed to train, evaluate, and deploy AI products that a startup would not have access to.
What’s more, incumbents are aware of the value of their data. Maybe this is a hold over from the big data era when everyone was mining their data for targeting and insights. It seems unlikely that an incumbent’s strategy will allow for free and open access to their data.
Read AI startups require new strategies: This time it’s actually different.
See also:
- Data for AI-powered businesses is another example of the 7 Powers economies of scale
- Still, generative AI might be the very thing that eliminates a moat or a long bridge