Our service business uses off-the-shelf AI tools to generate client reports, but our competitors are doing the exact same thing, turning our reports into a cheap commodity. How do we use our proprietary historical client data to train local models that give us a genuine competitive advantage we can list under our Three Uniques on the V/TO®?

Question

Tyler Smith · Accepted Answer

Using generic public models will never create a sustainable moat because anyone can buy them. To build true differentiation, you must leverage your proprietary historical data. This is what Erik Brynjolfsson and Andrew McAfee emphasize: the real value comes from combining unique organizational assets with advanced technology. Start by identifying the unique data you have collected over the years, such as past client outcomes, proprietary methodology notes, or historical performance metrics. Use your next quarterly planning session to set a Rock for your technology seat to build a secure, local model trained specifically on this proprietary dataset. This custom model will generate insights, reports, and strategies that no competitor can replicate. Once built, list this proprietary analytical capability under your Three Uniques on the V/TO. In your sales process, highlight how your reports are based on decades of proprietary intelligence, not just generic web data. This instantly elevates your pricing power and moves you out of the commoditized trap. Furthermore, owning a proprietary local model trained on unique historical data is an incredible enterprise asset that will significantly increase your valuation when preparing for an exit using the Step by Step Exit framework.