Chasing The A.I. Trend
When startups chase the latest trends like AI without being technically prepared or having foundational business experience, several pitfalls can occur easily.
In recent networking session, a few young folks asked me if they should include A.I. into their Startups. I replied, what are you trying to solve with your startup? Does it need A.I. or you just like many decide to throw it in to raise funds, thinking it is easier?
What or how do you plan to fulfill whatever you pitched to the investors? I am going to have an A.I. cupcake, a revolving office chair. How does this work? Is this land grab for whoever is dumb enough to invest just because of A.I. throw into the pitch deck?
Here is why you should not chase the next trend!
A. Misalignment of Goals
They may rush into AI initiatives without aligning them with their core business goals, leading to wasted resources on projects that don’t deliver value.
If there are investors who are dumb enough to believe everything you pitched without checking, there will be law suits flying around very quickly.
B. Technical Debt
Without the proper technical foundation, startups can accumulate technical debt, making future development more complicated and expensive.
AI know-how is not something that you can just buy off the shelves of a supermarket and plug it into the wall and it will work. There are many more things than just hiring but also planning the entire roadmap of what the business is about.
C. Resource Drain
Investing in trendy technologies often requires significant financial and human resources, which might be better spent on strengthening the core business.
If you are a first time founder, your challenge will be bigger than just the technologies used. But how to ensure the business is balanced between what you have, what you can deliver realistically.
D. Credibility Issues
Overpromising and underdelivering on AI capabilities can damage a startup’s reputation, making it harder to gain customer trust and investor confidence.
I believe this is what some of the founders are now doing, in order to raise funds and just throw in AI loosely to get some attention and cash.
E. Operational Inefficiencies
Lacking experience in business operations can lead to poor project management, missed deadlines, and ineffective implementation of AI solutions.
Learn to cycle before taking part in any competitions, big or small.
F. Burnout
The pressure to keep up with trends can lead to founder and team burnout, especially if the necessary skill sets aren’t in place.
And not to mention, high risk of legal lawsuits for mis-presentations while figuring out how to crawl yourself and the team out of the hole that you dug.
G. Lack of Market Fit
AI solutions might not address the real needs of their market, leading to products that don’t resonate with users.
Not everything needs AI just because it is the trend. Be realistic, as not everyone needs AI to solve their problems. And not everyone is willing to pay a premium when a simpler solution works just fine.
Startups should focus on building a solid foundation before diving into advanced technologies, ensuring they have the expertise and resources to support such initiatives. It’s all about balancing innovation with practicality.
