...this is a really interesting idea, but I'm not sure if it's entirely true?
If we're talking about a business's core competency, I think the assertion makes sense. You need to be better than your competition.
But businesses also need a whole lot of people to work in human resources, file taxes, and so on. (Not to mention clean bathrooms, but that's less relevant to the generative AI discussion.) I can certainly imagine how having a world-class human resource team could provide a tire manufacturer with a competitive advantage. However, if those incredible HR employees are also more expensive, it might make more sense to hire below-average people to do your HR and invest more in tire R&D.