AI Is a Platform Shift, Not a Brand Advantage

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AI platform shift

The marketing world has a new favorite acronym, and it is AI. Every company, from startups to established giants, is racing to weave artificial intelligence into their operations, outputs, and pitches. It feels like an all or nothing gamble, and while we cannot be certain if this is a speculative bubble, the enthusiasm for AI is unmatched and shows no signs of slowing down.

No business trend in the 21st century has looked quite like this. A quick look at Google Trends reveals that peak interest in Big Data, cloud computing, and social media barely registers compared to the current obsession with AI. Even Bitcoin, a former darling, struggles to keep pace. Only the rise of mobile technology shows a similar level of universal fascination and impact.

Artificial Intelligence as a General Purpose Technology

When I asked ChatGPT to compare these trend lines, it offered a compelling insight. It described AI as a general purpose technology with everyday applications, unlike the others which are more specialized. Mobile technology is the closest parallel because of its universal presence, impact, and functionality. I tend to agree with this assessment.

Thinking of AI as a platform is the most accurate way to understand its future role. It will serve primarily as a foundation for applications and derivative technologies. We will all use AI, but we will not use it directly. Instead, AI will be seamlessly embedded into the tools and services we already rely on. This shift from a standalone tool to an integrated utility changes how we should think about its value for business.

AI Enhances Existing Benefits, Not Creates New Ones

The first major implication is that AI’s primary benefit is making other things better. Think of it as a platform, not an end use in itself. Much like mobile, the value AI brings is making shopping easier, so the connection with consumers is about easier shopping, not AI shopping. It will not alter the fundamental benefits people seek from products and categories. It may change which brands deliver those benefits more effectively, and it may improve the quality of an experience. But no new benefit will be created.

This is the soft underbelly of the AI hype. It may not take AI to deliver something superior. Imagine the leisurely family stroll through a Saturday morning farmers’ market. That experience is part of a pricey neighborhood vibe and might be beyond anything AI could improve. In other cases, a different solution might be better. No amount of AI can increase legroom on a plane or recreate the original formula for a classic soda. Experience and taste will often trump any technological enhancement.

The Paradox of Quality in a Smarter Marketplace

As a universally available platform, AI will be accessible to every company. Some will use it more effectively, but the advantage will not come from the technology itself. It will come from human taste, judgment, and the ability to foster innovation, leadership, and culture. This is where a disciplined approach to identifying where AI can strengthen value creation becomes critical. You need to build the right capabilities and connect investment to commercial outcomes, which is a focus of programs like the Value Acceleration Studio.

Best practices travel fast in this industry. Companies learn from one another. Executives switch jobs and carry their skills with them. Conference presentations showcase successes to competitors. As every company gets up to speed, AI becomes table stakes, not a source of differentiation. Given the rapid uptake and ongoing experimentation, parity of competencies will happen faster with AI than with past technologies. Companies falling behind will suffer, but those keeping up will be similar to every other competitor. Novel applications will stand out only briefly before the gap closes.

This leads to a paradox. AI will likely deliver a more advanced marketplace where stubborn inefficiencies are finally fixed for every brand. However, it is unclear if AI can enable one company to assume a commanding position when all its competitors are equally proficient. The AI future might simply mirror today’s market share and profitability, just with AI instead of without. That is why strong brand positioning matters more now than ever. Companies that create stronger preference, greater pricing power, and more durable demand will be better positioned to benefit from the platform shift.

The Challenge for Established Brands and New Players

AI is difficult to layer onto an existing structure. This presents a serious challenge for big, established brands. They will eventually be the winners in this race, but they will not be the first out of the gate. They simply cannot afford to experiment with a platform shift that might destabilize their current operations. Over the immediate term, AI native firms will get more out of the technology. They employ fewer people, have a higher percentage of engineers, and are flatter in structure. These firms integrate AI into both process and product, not just on top of existing workflows.

This pattern is not new. We have seen it with digital native, social media native, and internet native firms. There is truth in the idea that native firms are savvier with new technologies. But there is a distinction between managing for value and managing for valuation. Native firms often look for a payday that transfers their systems and people to a bigger home. Out of the box AI innovation will likely come from these smaller, agile players. They will sort out what works and what does not, and then big brands will upgrade and adapt. We are seeing a lot of action now, but the future is a platform shift like the move to mobile, not a simple operating update.

The rapid pace of change makes big moves risky for established brands. For example, brands are busily adapting to stay visible with text based LLMs that power consumer search and recommendations. But these current LLMs are not the best that AI can do. More advanced technologies are coming. Going all in on today’s LLMs is a bet that the future has arrived, when in fact it has barely begun to unfold. Patience and strategic observation might be the wisest course for the biggest players. If you are looking to navigate these changes and build a career around them, consider exploring resources from trainers like Nehme Sbeiti, who offer insights into website design, search engine optimization, and digital marketing services that can help you adapt to this shifting landscape. Understanding the strategic implications now will set you apart as the platform matures.

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