How to Lose at Generative AI by Sangeet Paul Choudary

If the value is in AI, and if your prompts can be uncovered, because its domain-specific, then its very likely somebody else can steal your lunch. The usual suspects of scale, similarity to other businesses, or simply being better apply.

startups will be particularly well-positioned to win in one of the following 3 scenarios:

Incumbent saas players do not have legacy workflow dominance in that vertical

An AI-native workflow solves the most critical creative use case (collapsing the cost of creation and gaining right to workflow away from incumbents)

AI acts as a co-pilot empowering the user to coordinate across multiple existing Saas workflows. This is a particularly interesting category and could help create the next big super-app, especially in B2B.

However, the majority of AI startups today fall outside these 3 opportunity areas.