Summary
Founders can no longer rely on AI itself as a competitive edge because everyone has access to the same models and tools, making replication easy and margins tight. Instead, lasting advantage comes from how AI is applied—through proprietary data, deep workflow integration, and network effects that embed products into daily habits and raise switching costs. Investors favor businesses with real user lock‑in, meaningful data capture, and operational pain for leaving, not fancy algorithms. To build durable moats, startups must focus on habit‑forming experiences, workflow ownership, and compounding effects that competitors can’t easily imitate.
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