AI Moats: Data, UX, and Integration, Not Models
2025-02-20
Last year, we argued that AI wasn't a moat, as prompt engineering is easily replicated. However, models like DeepSeek R1 and o3-mini have reignited concerns. This article argues that better models are a rising tide lifting all boats. Sustainable competitive advantages lie in: 1. Exceptional user experience—focus on seamless integration into workflows and solving user problems, not just adding AI for the sake of it; 2. Deep integration with existing workflows—integrate with messaging, document systems, etc.; 3. Effective data collection and utilization—focus on both input and output data for insights and improvements. Ultimately, AI is a tool; the key is understanding and meeting user needs effectively.