The AI paradox: Are VCs betting on the wrong horse?
Why smart money is on the incumbents, not the disruptors
The narrative of disruptive startups unseating established giants is a Silicon Valley trope.
However, the rise of artificial intelligence may be rewriting this script, giving corporate incumbents a decisive advantage.
While the hype machine focuses on nimble startups, a closer look reveals a powerful argument for why AI is poised to solidify the dominance of established players, potentially creating a new era of corporate leviathans.
This isn't just about incumbents having more resources; it's about the very nature of AI and its impact on business, suggesting a potential reversal of the traditional disruption cycle.
But I might be wrong. Is AI a platform shift or a paradigm shift? Does AI eat the world? If yes, how?
The conventional wisdom suggests startups are agile and innovative, while incumbents are weighed down by bureaucracy and legacy systems.
However, this narrative overlooks the unique advantages incumbents possess in the age of AI.
These advantages are not merely incremental but fundamental, creating a potential AI fortress that startups will struggle to breach.
Furthermore, the very nature of AI may favor incumbents in a way that previous technological revolutions did not.