Amid high interest rates, the venture capital faucet has tapered into a trickle — except when it comes to AI. Investors poured more than $40 billion into AI ventures in the first half of 2023. More than a third of the businesses in famed accelerator Y Combinator’s latest batch are AI startups. Almost everyone seems to be hopping on the AI wave. Fear of missing out is high.
Strategy, Not Technology, Is the Key to Winning with GenAI
GenAI tools are increasingly built on the same underlying models. To get ahead, companies need to look elsewhere for advantages.
December 06, 2023
Pepino de Mar studio/Stocksy
Summary.
The explosion of AI startups in dozens of sectors masks something many of them share: They are increasingly built on top of standardized technology from a few AI giants like OpenAI, Google, and Meta. This puts a premium on strategy over proprietary technology. Companies who use these tools will need to think about how they’ll create value beyond the technical features they offer and what they will do to stand out from the pack. They’ll also need to prepare for, among other things, higher employee turnover.
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New!
HBR Learning
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.