AI Hindsight: 3 things companies will do right to win

In the evolving landscape of disruptive technology, each cycle brings its unique challenges yet shares a few consistent elements. These typically include hype, shifts in funding strategies, new approaches to go-to-market (GTM) strategies, and the ever-present influence of macroeconomic factors.

Prompt: “Generate an image for this blog post.” It’s really bad honestly.

A Quick Retrospective:

• Web 1.0: Characterized by deregulation, rampant optimism, and excessive Y2K spending. It was a lucrative era for those who timed their moves well, but only a handful of companies, like Amazon, truly thrived beyond this phase. Although Google was founded during this period, its essence aligns more with Web 2.0.
• Web 2.0: This era emerged from an economic downturn and harnessed the energy of tech-savvy individuals. Key developments included the rise of platforms like YouTube, Facebook, MySpace, and AWS, and the birth of cloud computing. This period also marked the beginning of a 13-year cycle of “easy money,” which unfortunately led to some detrimental habits in the industry.
• Mobile: Sure, not a web point solution but definitely a disruptive cycle. Mobile had been around for well over a decade but all of the rules went out the window with this one. Aligned with the economic downturn as well.
• Web 3.0: A time rife with speculation, often debated whether it should even be called “Web 3.0.” (Let’s not get into my personal feelings on this, especially given my own experiences and exits in this domain.)

The AI Era: Strategies for Success

The AI era is coming at us now at full steam and with it, a new era of not-so-free-money. Interest rates are at normal levels now and that means entrepreneurs have to adapt. It means the same playbooks likely won’t work or will be wildly inefficient in a post-AI / post-free-money world.

Winners in this AI-era will master these 3 things:

• Integration and Iteration: Combine the best tools available to solve specific problems. Continuously update and replace elements as needed to stay ahead. If you’re building a bunch of technology, software, etc I think you’re doing it wrong.
• Aggressively partner: In a post-AI world you cannot possibly think you’re going to do everything. Partner early and often even if that partner might end up being a competitor. You need to re-evaluate that SaaS playbook you have.
• Outlast: By focusing on a building a cash business that grows organically via PMF first, you’ll outlast those that raised too much money and get hit by the “trough of despair” getting a chance to snap them up for pennies on the dollar.

Mark my words on this. I’m looking forward to pointing to this post years from now.