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.

The ultimate PLG companies are consumer brands like shampoo, which sell on brand affinity, not commoditized features. As software becomes more commoditized, B2B companies must similarly build a strong brand theme that inspires users to associate with them, creating a more durable moat than features alone.

When asked if AI commoditizes software, Bravo argues that durable moats aren't just code, which can be replicated. They are the deep understanding of customer processes and the ability to service them. This involves re-engineering organizations, not just deploying a product.

AI capabilities offer strong differentiation against human alternatives. However, this is not a sustainable moat against competitors who can use the same AI models. Lasting defensibility still comes from traditional moats like workflow integration and network effects.

As AI generates endless look-alike content, a brand's ability to create genuine, human-to-human connection is a unique and defensible advantage. This 'vibe' cannot be automated or easily replicated, making it a crucial competitive differentiator in a crowded market.

The long-held belief that a complex codebase provides a durable competitive advantage is becoming obsolete due to AI. As software becomes easier to replicate, defensibility shifts away from the technology itself and back toward classic business moats like network effects, brand reputation, and deep industry integration.

As AI and no-code tools make software easier to build, technological advantage is no longer a defensible moat. The most successful companies now win through unique distribution advantages, such as founder-led content or deep community building. Go-to-market strategy has surpassed product as the key differentiator.

AI drastically accelerates the ability of incumbents and competitors to clone new products, making early traction and features less defensible. For seed investors, this means the traditional "first-mover advantage" is fragile, shifting the investment thesis heavily towards the quality and adaptability of the founding team.

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.