Competitive Moating in AI

In a tech-driven business world, the tech side becomes a moat only when it translates into a brand, distribution, and operational advantage.

That means the tech side becomes the instrument to gain market shares via brand, distribution, and a vertical infrastructure able to sustain a larger and larger scaling — as explored in the emerging fifth paradigm of scaling — advantage.

If we were to translate business competition into a sport made of “competitive moating,” that can be all translated in this graphic below.

For a tech moat to become a lasting advantage, it must be translated via efficiency, branding, and distribution into locked-in market shares of the future market. That’s the bet.

In AI Moats: Part One, I’ve explained the process of mapping moats out.

Now, let’s start from there to see how these temporary tech advantages are translated into business moats.

Mapping The Moats Out

As a reminder, these are the key elements to look out for when building a strategic moat.