Every software vendor we use has added an AI copilot feature, making the technology feel completely commoditized. How do we determine if we should build our core business strategy around proprietary AI applications or simply treat AI as table stakes while focusing our V/TO on human relationships?

Question

Tyler Smith · Accepted Answer

To make this strategic decision, you must look at your Three Uniques on the V/TO. If your differentiation in the market relies on proprietary data, custom algorithms, or a unique delivery speed that no competitor can match, then building proprietary AI is worth the investment. Otherwise, building custom AI is a distraction that will drain your cash flow.

For most businesses, off-the-shelf AI features are table stakes. Your competitors have access to the same software integrations, meaning the technology itself will not make you stand out. Instead, your strategic focus must shift to what economists Erik Brynjolfsson and Andrew McAfee call becoming an indispensable complement to cheap technology.

When technology becomes cheap and plentiful, the value shifts to the human elements that cannot be automated. This means your strategic focus should be on deep relationship management, complex problem-solving, and emotional trust. Treat the commoditized AI tools as operational accelerators to lower your cost of goods sold, but build your V/TO around the human-centric value you wrap around those tools.

Use your next quarterly planning session to clarify this boundary. Document exactly where AI drives internal efficiency and where human expertise delivers the client-facing value. This prevents you from wasting capital on custom software that fails to differentiate you.