AI startups require new strategies: This time it’s actually different

The typical advantages startups hold over incumbents, such as speed and risk tolerance, largely do not apply in AI, so AI startups need different strategies to compete. The article argues that incumbents already have the technology, customer data and talent, and that they are rushing to adopt AI rather than ignoring it as incumbents did in past disruptions like mobile and the internet. It adds that since everyone can access the same core models from OpenAI, Anthropic, Cohere, Llama, Bloom and Mistral, differentiation through distribution and data strategy is required, and that most AI startups will fail as a result.