Batchu: Enterprise AI is sustaining innovation favoring incumbents with distribution
Sri Batchu · Wealth Creation For Employees Explained By Sri Batchu (Ramp, Instacart, Opendoor) I The Neon Show · Jun 20, 2024 · at 1:07:45
Sri Batchu explains why B2B AI applications have favored established software vendors over AI-native startups.
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“The way we're seeing AI being incorporated into a lot of businesses is that it's more of a sustaining innovation and not a disruptive innovation, if you were to use kind of Clay Christensen's framework. In, for example, in BtoB, it hasn't become a big enough wedge yet to build an AI native app company that solves a customer problem. I think the incumbents have benefited Very quickly because of how easy it has been to incorporate the API AI technology, and they've been able to leverage their distribution skills to preempt a competitive threat on, on the B to B layer.”
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