Even as AI models become more intelligent, they won't fully commoditize. Differentiation will shift to subjective qualities like tone, style, and specialized skills, much like human personalities. Users will prefer models whose "taste" aligns with specific tasks, preventing a single model from dominating all use cases.
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The AI market is becoming "polytheistic," with numerous specialized models excelling at niche tasks, rather than "monotheistic," where a single super-model dominates. This fragmentation creates opportunities for differentiated startups to thrive by building effective models for specific use cases, as no single model has mastered everything.
Runway's CEO suggests that AI models possess a "personality" shaped by the company's objectives. A model built for ad-driven consumer apps will have a different "taste" and visual style than one designed for professional creative tools, making this implicit quality a key competitive differentiator.
As AI democratizes the technical aspects of content creation, the ability to guide it with unique perspective, craft, and taste becomes the key differentiator. AI is a powerful tool for experts to scale their vision, but it cannot replace the vision itself.
As AI commoditizes the 'how' of building products, the most critical human skills become the 'what' and 'why.' Product sense (knowing ingredients for a great product) and product taste (discerning what’s missing) will become far more valuable than process management.
Startups like ElevenLabs and Midjourney compete with large AI labs by imbuing their models with a founder's specific 'taste.' This unique aesthetic, from voice texture to image style, creates a product identity that is difficult for a general, large-scale model to replicate.
As models mature, their core differentiator will become their underlying personality and values, shaped by their creators' objective functions. One model might optimize for user productivity by being concise, while another optimizes for engagement by being verbose.
The best AI models are trained on data that reflects deep, subjective qualities—not just simple criteria. This "taste" is a key differentiator, influencing everything from code generation to creative writing, and is shaped by the values of the frontier lab.
As AI tools become commoditized, the exponential differentiator for marketing success will be subjective taste. Teams must double down on unscalable, creative elements that AI cannot replicate, as this is what will truly stand out and build a memorable brand.
When competing with AI giants, The Browser Company's strategy isn't a traditional moat like data or distribution. It's rooted in their unique "sensibility" and "vibes." This suggests that as AI capabilities commoditize, a product's distinct point of view, taste, and character become key differentiators.
As AI lowers the barrier to creating functional software, "good enough" products become mediocre. To stand out, companies must differentiate through superior design, craft, brand, and storytelling, moving the competitive battleground "up the stack" to more subjective, human-centric values.
