• Daily Success Snacks
  • Posts
  • “We’re AI-Powered.” — “So Is Everyone.” (And That’s Exactly the Problem)

“We’re AI-Powered.” — “So Is Everyone.” (And That’s Exactly the Problem)

In a world where everyone uses AI, what actually makes a startup fundable?

 

Read time: 2.5 minutes

A founder proclaims, “We are AI-based,” with confidence.

The investor listens and nods. For a moment, they are both quiet. Every other deck is identical.

There is nothing faulty in the statement. However, the founding company is not different in its description than any of the others either.

Here's Why “AI-Powered” No Longer Matters!!

1. AI is no longer a unique characteristic.

  • Same Models

  • Same APIs

  • Same Outputs

The truth is that AI is now a requirement for conducting business in today’s digital world and can no longer be used as an advantage.

2. Capability is not the same as having a unique characteristic.

  • Anyone developing a similar capability will be able to do so.

  • Only a select number of developers will be able to continue to provide an advantage.

The transition is away from “What I can do” to “What other developers cannot replicate.”

3. Investors want to own the model, not have access to it.

  • You don’t have the model.

  • You must have an advantage to use the model.

Investors focus on:

  • Proprietary Data

  • Unique Workflow

  • Distribution Leverage

4. When your position as a developer is weak and you use “AI-Powered” to disguise your weakness, you will face the following issues:

  • Broad Scale Messaging

  • No Clear Use Cases

  • No Sense of Urgency

The result of this is that when everything is possible, nothing is important.

5. The results of AI capabilities are more meaningful than the technology that produces them.

  • Being faster does not mean it is worth much.

  • Being smarter does not mean it is likely to become adopted.

The transition is away from features to Decision-Making, Revenues or Cost Impact.

💡Key Takeaway: 

The true value of your startup comes from the things you create, not from any kind of AI.

👉 LIKE if this changed how you think about “AI-powered”.

👉 SUBSCRIBE now to receive concise insights about startups, AI and the real value of any type of company.

👉 Follow Glenda Carnate to see how things get funded in the real world, with practical examples.

👉 COMMENT “MOAT” if you’re building something defensible.

👉 SHARE this with a founder still leading with “AI-powered.”

Reply

or to participate.