As generative AI systems advance, they promise to disrupt industries and threaten existing competitive moats, compelling companies to adapt rapidly to remain relevant.
The three pillars driving AI—compute power, model development, and training data—are advancing quickly, necessitating swift strategic actions from incumbents to protect their positions.
Many new entrants in markets will capitalize on AI's capabilities, offering superior products and services, which will challenge traditional firms and their established moats.
While some moats may weaken with AI's rise, others may endure due to brand strength, proprietary data, or robust operational frameworks.
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