AI Wars and the Role of Entrepreneurs

Entrepreneurs face a unique challenge. As large companies push into the AI field, it may seem that the natural competitive advantage of startups – agility and innovation – may be under threat.

The reality is that AI is an inherently deflationary technology. AI-generated products tend to be abundant and therefore of low value.

In this all-against-all context, one only has to look at the staggering number of platforms that have emerged in the past year to generate images, content, etc.

This means that the barriers to entry are relatively low. Anyone with the right technical know-how can replicate and improve existing applications.

What’s worse, platforms like OpenAI are trying to occupy more and more space in the value generation spectrum by hosting their own communities to develop and train models.

So how do you compete in this landscape? The key is to focus on aspects of the business that cannot be easily replicated by AI. Characteristics such as community, market understanding and the ability to quickly adapt offerings to changing customer needs will be crucial.

In addition, entrepreneurs should leverage AI not as an end in itself, but as a tool that allows them to be more efficient and customer-centric. AI can automate repetitive tasks, free up time for innovation and provide valuable insights into user behaviour. But the real added value will continue to come from human creativity and initiative.

The “AI Wars” represent a challenge for entrepreneurs, but also an opportunity to highlight another competitive advantage: their ability to connect with real customer needs and adapt quickly to a constantly evolving environment.

In this sense, at HAL149 we have been working for months with businesses in the development of AI solutions that generate real value for day-to-day business such as the AI Salesman.

We recognise that starting with a 100% technology solution can be riskier in this context. That’s why we’re committed to investing the first few months of the project in learning and building products that are difficult to replicate, in order to take part in the AI wars.