Thinking through AI as the next new platform opportunity - Version One: The Revenge of the Fat Guy

Thinking through AI as the next new platform opportunity - Version One: The Revenge of the Fat Guy

In the ever-evolving world of technology, new platforms often emerge as game-changers, offering exciting opportunities for companies and developers to build upon. Artificial Intelligence (AI) is the next frontier in this regard, with its potential to revolutionize various industries. However, as we delve into this new platform opportunity, there are important questions that need to be addressed.

The first question is how much value the underlying AI platform will keep for itself. History has shown that platforms tend to extract the bulk of the value, leaving little for those building on top. We can draw parallels to cloud computing, which is divided between AWS, Azure, and GCP. Similarly, OpenAI, Google, and Facebook are leading contenders in the AI space. The competition between these companies should limit the dominance of a single entity and ensure a fair distribution of profits.

The second question revolves around who will capture the majority of the new value being generated: incumbents or start-ups? Incumbents have the advantage of unique data sets, large user bases, and strong financial positions, which give them an edge, especially in the consumer market. However, when it comes to enterprise software, there is an opening for start-ups to create more value with vertical-specific AI products. By designing interaction models that minimize friction and risks, leveraging proprietary data, and addressing regulatory constraints, start-ups can carve out their niche.

Now, let's explore some common points between these two articles. Both emphasize the importance of competition and the significance of data in the AI platform landscape. While the first article focuses on the competition between AI platform providers, the second article highlights the fierce competition that drives the best markets. In both cases, having a unique advantage, whether it be through data or differentiation, is crucial for success.

To navigate this evolving landscape, here are three actionable pieces of advice:

1. Leverage unique data: Whether you are an incumbent or a start-up, having access to unique and proprietary data will be a key differentiator. Invest in data collection, analysis, and feedback loops to gather valuable insights that can fuel your AI products and services.

2. Design with user experience in mind: AI products must be designed in a way that minimizes friction and risks for users. False positives and false negatives can cause frustration and erode trust. By incorporating human-in-the-loop models and designing intuitive interfaces, you can enhance the user experience and drive adoption.

3. Stay on top of regulatory and privacy constraints: As AI continues to advance, concerns around privacy and regulations are mounting. It is crucial for companies to proactively address these constraints to protect their brands and maintain trust with customers. Stay updated on legal frameworks, invest in robust security measures, and prioritize ethical considerations in your AI development.

In conclusion, the rise of AI as the next platform opportunity presents both exciting possibilities and unique challenges. While competition is fierce, companies can find success by leveraging unique data, designing user-friendly experiences, and navigating regulatory constraints. As AI continues to shape our future, those who adapt and innovate will ultimately capture the new value being generated. So, embrace the potential of AI and embark on the journey of building the next big thing.