The author advises AI startups to focus on business fundamentals, ensuring their products solve real-world problems, have a well-defined and valuable customer segment, and have a compelling proposition beyond just being AI-powered. The author also offers services to help AI startups navigate these challenges, including professional marketing due-diligence audits and free consultations.
Key takeaways:
- The author predicts that 2024 will be a year of sobering reality for AI startups, with a shift from hype to a more challenging business environment.
- Despite AI startups weathering the storm of high interest rates in 2023 and attracting a significant share of startup funding, the author suggests that the surge in seed-funded AI startups will lead to increased competition for Series A funding in 2024.
- There are indications that the demand for AI products seen in 2023 is not sustainable, with customer expectations normalizing quickly and the allure of "AI powered" products likely to lose its appeal.
- AI startups are advised to validate that they solve a fundamental human/business problem, identify a market beyond the AI hype, craft a narrative that resonates without leaning on the AI crutch, and transition to more sustainable and scalable customer acquisition strategies.