Boat, Not Moat

To create a survivable business, the metaphor of the defensible “moat” will be outdated as the land shifts beneath us. The water is rising. Your company doesn’t need a moat, it needs a boat. The forces of the ocean will be much stronger than most businesses in traditional knowledge work and SaaS will be able to withstand.

More bluntly, anything built in software or any knowledge work can be replicated and commodified. Brand, unique data, and deep tech all can differentiate for a while, until both AI slop and sharper tools generated by AI are overwhelming.

Any new startup will rely on AI, but since AI is not static, we will all float on a changing sea. What is builder’s place in that world?

While this is scary to be unmoored, we are free from dank, cold castles that may have imprisoned us. The essence of the human experience and relationships, however you define this, will continue to be in demand. We want safety, we want connection, we want entertainment – and we will expect more. We don’t want complex taxes, medical failures and large bills, government shutdowns, or boring and expensive education. We don’t want bureaucracy, at least if it gets in our way.

Adopting as much AI as possible is the only rational path for a business. You competing against AI, you are being challenged to build a floating vessel. A boat has many attributes, but the most important is the boundary between the ocean and the interior. Focus on the engineered shape of your boundary to float, not a wall impervious to enemies. Be ready to catch wind and waves, or dip below them. You will not hold land, but live on a shifting sea. Your state of mind and the state of your vessel matter more than your ambition.

Build a great boat. Help others build boats.