The biggest struggle for AI startups is the incumbents (Microsoft, Google, AWS) that have a clear distribution advantage.
Interestingly this is contrary to what's happened with "new tech" in the past that comes into the market. This time, the incumbents have leverage on data (thew new oil), compute (high starting up costs) and distribution channels.
1. The existing distribution channels are saturated, but can AI enable new channels? ChatGPT/Perplexity has become a channel over SEO where you get the answers you are looking for, is there a way to be featured here?
2. If the startups have access to the same models, same compute, where is differentiation? Some initial answers are
a) Access to new types of data
b) Unique partnerships with medium / large incumbents.
3. The "AI market" is yet to become a new category. Most adoption today is AI enhancing existing workflows/use cases, are there new use cases that we going to see unlocked?