As AI makes it easy to generate 'good enough' software, a functional product is no longer a moat. The new advantage is creating an experience so delightful that users prefer it over a custom-built alternative. This makes design the primary driver of value, setting premium software apart from the infinitely generated.

To build a durable business on top of foundation models, go beyond a simple API call. Gamma creates a moat by deeply owning an entire workflow (visual communication) and orchestrating over 20 different specialized AI models, each chosen for a specific sub-task in the user journey.

Simply offering the latest model is no longer a competitive advantage. True value is created in the system built around the model—the system prompts, tools, and overall scaffolding. This 'harness' is what optimizes a model's performance for specific tasks and delivers a superior user experience.

As foundational AI models become more accessible, the key to winning the market is shifting from having the most advanced model to creating the best user experience. This "age of productization" means skilled product managers who can effectively package AI capabilities are becoming as crucial as the researchers themselves.

When facing massive incumbents, avoid the trap of creating a slightly better version of their product. Instead, focus on being fundamentally different. Gamma chose to break the 16x9 slide paradigm that PowerPoint established, creating new primitives for visual communication.

Tools like Genspark's AI Slides are most valuable for rapidly structuring ideas into a coherent presentation, acting like a 'wireframe' for content. The primary benefit is transforming raw information into a logical first draft, which can then be exported to traditional tools like Google Slides for final design polish.

Tools like Descript excel by integrating AI into every step of the user's core workflow—from transcription and filler word removal to clip generation. This "baked-in" approach is more powerful than simply adding a standalone "AI" button, as it fundamentally enhances the entire job-to-be-done.

As foundational AI models become commoditized, the key differentiator is shifting from marginal improvements in model capability to superior user experience and productization. Companies that focus on polish, ease of use, and thoughtful integration will win, making product managers the new heroes of the AI race.

With AI tools like Gemini 3.0 democratizing execution, the ability to generate unique, scroll-stopping ideas and provide strong design references becomes the key differentiator. Good taste and a clear vision now matter more than the technical ability to implement a design from scratch.