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.