AI-Native Business Models
In Scaling Advantage, I’ve explained how:
In the current paradigm of AI, you can tap into the distribution pipelines of the web, to massively redefine the value proposition of an entire industry with a very small team.
To get this passage, you have to understand the difference between the Web tech paradigm and the AI tech paradigm:
From there, it is derived that right now, AI-native companies can leverage the “distribution playbook” of the web to create radically better products with the help of AI and redefine the whole value chain of entire industries.
That is what creates a business model scaling machine!
Indeed, with AI in the loop, working as an underlying layer for many AI startups to get traction quickly, that is an even more skewed effect!
Indeed, as I’ve pointed out both in AI Moats and Competitive Moating, these companies with an AI-native business model architecture, for now, have the massive advantage of tapping into levels of traction and initial scale never seen before!
In other words, if in the previous tech paradigm of the web, based on an informational layer, on top, you could quickly amplify distribution.
With a small team in the AI-Up, you start from there to redefine the underlying assumptions of an entire industry.
That’s the era of the AI-Up!
This is part of an Enterprise AI series to tackle many of the day-to-day challenges you might face as a professional, executive, founder, or investor in the current AI landscape.
