Founders, AI is a Tool, Not Your Product
In today's tech-driven world, many founders are eager to label their companies as “AI companies.” While artificial intelligence is indeed a powerful tool that can significantly enhance your products, it’s crucial to remember that AI itself is not what you’re selling. Your customers are interested in the value your product brings to their lives, not the technology behind it.
The Misunderstanding:
Every founder telling me their positioning: “We’re an AI company.”
Me: “Oh, wow! — so you sell AI models and compete with OpenAI and Google?”
Founder: “Well, no. We sell shoes, but our AI algorithm on our site is crazy good at personalizing the shopping experience.”
Me: “Sounds to me like you’re a shoe company.”
Founder: “We don’t want to be a shoe company. We want to be an AI company.”
Me: 🤦🏻♂️
Understanding AI’s Role:
Founders, you must remember that AI is just a tool you’re using to improve your product. It’s NOT what you’re selling! And it’s not what people are shopping for!
Real-World Examples:
- Netflix: People buy Netflix because they want good movies and TV shows — not because they use AI.
- Spotify: People buy Spotify because they want access to all their favorite music — not because they use AI.
- Tesla: People buy a Tesla because they want a cool electric car — not because they use AI.
Misleading Positioning:
Calling yourself an AI company when you sell shoes is like:
- 🤡 Calling yourself a tech company because your team uses MacBooks.
- 🤡 Calling yourself a digital banking company because you accept credit cards.
- 🤡 Calling yourself a health company because your employees have insurance and ergonomic chairs.
The Right Approach:
Instead of positioning the tools and tech you’re using, position the actual product you’re selling (that AI is improving). This approach makes your value proposition clearer to your customers and ensures that they understand what they’re actually getting from your product.
Conclusion:
While AI can be a game-changer in enhancing your product, it’s important to keep your focus on what you’re truly offering. Let AI be the magic behind the scenes that makes your product exceptional, but position your product based on the tangible benefits it brings to your customers. Save the “AI company” talk for your VCs who understand and appreciate the technical sophistication of your solutions.
#AI #Startup #ProductPositioning #Entrepreneurship #BusinessStrategy
