Ask HN: Which class of business model is most resilient to build in the AI era? | Hacker News Reader

Ask HN: Which class of business model is most resilient to build in the AI era?

3 pointschatmasta5 comments

If you were to start a company today, what type of business model would you choose? Most new businesses have some form of AI in them, and this makes some sense during a gold rush, but it’s also a crapshoot. And the rate of change is so insanely fast and unpredictable that it’s becoming difficult to read the market with any confidence beyond three months. Even if you hit traction, there’s no guarantee your moat won’t evaporate. And it’s cheap for everyone to build now.

Personally I think the smartest business to start right now would be an “online-to-offline” model that bridges digital and physical world - think DoorDash, Uber, etc… if you hit traction with that kind of business then at least you have a legitimate moat that AI can’t drain overnight.

Most new businesses have nothing to do with tech at all. If you want to play in the slice of the tech world that is focused on AI, that is a choice you can make. And some people are going to make a fortune doing so. But don't fall into the trap of thinking that most business founders are part of this - most new business owners are retail, restaurants, landscapers, service professions, etc. Small local shops doing the things they do.

Let me rephrase the question to the scope of startups. A small business is not a startup: https://www.paulgraham.com/growth.html

But you’re also completely right.

> Most new businesses have some form of AI in them

Most new business are customers of AI companies. They are consuming AI. They don't build AI. They don't advance AI technology. They are not using AI in innovative ways. They are consumers.

Don't let anyone fool you into thinking there are a bunch of new AI companies around. No. There are a few AI companies, and millions of AI customers.

Hey look, I use electricity produced by someone else. I must be in the Energy sector!?

Hey look, I stock the fridge with veggies someone else grew. I must be innovating in Agriculture!?

Hey look, my product was created by a someone else's robot. I must be innovating in AI!?

Obviously not. Any valid conversation starts by differentiating between a leading innovator, a producer and a mere consumer.

How about heritage products? People buy them for traditional authenticity.

Selling shoes.

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