AI is Your newest competitor

Sitting nearly 4 years after ChatGPT launched, it’s become clear to me that AI is simply the latest competitor for most businesses. It’s a different kind of competitor, because it doesn’t just compete on feature sets, as was the case in the past. Now it also competes on support and implementation, right out of the box. This opens up new dimensions where it can take your cake.

But the positive news is that some cracks in the armor are starting to show.

  1. Design. People are starting to smell out vibe-coded apps, and no matter what AI tries to do, it will default back to looking like AI. This has created an interesting cycle where AI-created apps are eroding trust because if you used AI to make your app, what else are you using it for?

  2. Integration. MCP made big promises and everyone lost their minds for a second, but true, purpose-built integrations are still much better. Integrations require constant updating and maintenance, don’t think AI will bother with that.

  3. Human Support. That doesn’t just tell you you’re a genius and reassure you everything is fine when it’s not. Connecting with another person who actually sits with you through the problem is not going to go away.

  4. Price. Using AI for everything is incredibly inefficient. Every time you want to do something it calls the model and it has to run. Right now it’s highly subsidized which disguises the real cost. As soon as that rug gets pulled, people will flock to look for cheaper ways to do things.

Don’t get me wrong, AI is a formidable competitor. But it does have flaws, and if you build against them you can stay alive.

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