My 2 Cents | #14
AI's Role is Distorting Business Goals in the Startup Ecosystem
26/03/2024
Opinion of the Advisory Principal Gianfranco Miranda
We are well aware of the significant influence AI has had on the business world in recent months, with startups leading the charge in adoption and utilization. 🤖Every founder seems eager to incorporate AI into their products or services, whether or not it's truly applicable. They even integrate it into their classic business claims and descriptions, with statements like:
'We are an AI Fintech solution.'
'We provide an AI-powered e-commerce marketplace.'
'We use artificial intelligence for chatbot integrations.'
By making these claims and asserting that AI is integrated into their business, startups are attracting attention from VCs and accelerators. But is AI truly ubiquitous in the market? 🤔 Not quite. AI adoption remains slow and requires a dedicated team to manage it. It's not just a matter of enabling AI; it involves significant investment, software development, and integration into existing processes, which can take considerable time and effort before being presented to the market. In the meantime, startups and founders are simply mentioning AI in their discussions without truly explaining or selling what they do.
'AI's influence is interfering with startups' business goals.'
While AI adoption can be beneficial, losing sight of your business goals is detrimental. I've spoken to numerous businesses across the US, Canada, Latin America, and Europe, and many have found that while AI has enhanced their business interest and management practices, it has also consumed a significant amount of time ⏱️ that could have been devoted to other aspects of business growth. This downside of implementation represents an investment without a clear projection of growth. Instead of developing a structured strategy for integrating AI into their products and services, startups are diving headfirst, losing sight of their overall business objectives and failing to develop and execute short and long-term business goals.
So, what recommendations do I have for those currently navigating this terrain?
Here are four key considerations to incorporate into your business strategy to effectively integrate AI without losing sight of your business objectives: 👇
Evaluate your business goals with and without AI implementation to gain a better understanding of the benefits versus the investment required. This will help determine if AI is truly necessary for your business at its current stage.
Establish a dedicated SWAT team for AI development and execution. Instead of reallocating all resources to AI implementation, select a few individuals to spearhead the process. This will optimize resource utilization and prevent overwhelming the entire team.
Prioritize your primary business goals, focusing on how you assist and serve your clients and customers, rather than solely fixating on AI integration. Concentrating efforts on your core revenue streams, unless AI is directly aligned with your main business goal, will lead to more short-term success.
Conduct thorough market research. If AI adoption appears to be the trend, don't rush to implement it simply to keep pace with competitors. Instead, focus on delivering exceptional services or products that meet your customers' needs and desires. Integrate AI as an enhancement rather than rushing to market without proper testing, analysis, and understanding of customer reactions. Remember, investing time and resources in thorough investigation can yield higher returns than h
astily adopting AI without a clear strategy.
Let's harness the power of AI in our businesses intelligently, leveraging our human intelligence in tandem with machine capabilities. 🧠
For further support in driving your business growth, please don't hesitate to contact us at contact@disruptintl.com. 📩 We're here to serve as your trusted advisors for business growth.
