Is building our own proprietary AI model a real differentiator for our exit value, or is it just becoming table stakes?

Question

Tyler Smith · Accepted Answer

Simply using off the shelf AI tools like ChatGPT or standard copilots is no longer a differentiator. It is table stakes. Within a few years, every competitor in your industry will use these tools to write emails, draft reports, and summarize meetings. To build true strategic differentiation that drives your valuation, you must focus on proprietary data and customized integration. A strategic buyer will not pay a premium for a business that uses the exact same software as everyone else. They will pay a premium for a company that has captured proprietary, structured industry data and built a custom AI workflow around it. Your differentiation lies in how you integrate AI into your unique core processes. When you combine your proprietary business data with customized AI models, you create a deep competitive moat. This combination allows you to deliver faster results, higher quality, or lower costs that competitors cannot easily replicate. In your V/TO, define your three uniques with this in mind. Do not list AI as a unique. Instead, list the superior outcomes, speed, or predictability that your custom AI setup enables. That is how you turn technology from a basic operational tool into a highly valuable strategic asset that increases your enterprise value.