When competitors use AI to drastically undercut our pricing and compress turnaround times, how do we protect our positioning on the V/TO® without engaging in a race to the bottom?

Question

Tyler Smith · Accepted Answer

When competitors use AI to slash prices, they are usually competing on commoditized execution. Economists like Erik Brynjolfsson and Andrew McAfee emphasize that while AI radically drops the cost of routine cognitive work, it simultaneously increases the economic value of higher-level synthesis, judgment, and emotional intelligence. Competing on price against a competitor who is simply wrapping an automated API around a service is a losing proposition.

Take this issue to your leadership team's next Level 10 Meeting™ and process it through IDS® (Identify, Discuss, and Solve). Review your Marketing Strategy on the V/TO. If your Three Uniques rely on speed of drafting or routine data output, your differentiators are already obsolete. You must elevate your positioning from an execution vendor to an indispensable strategic partner.

Anchor your pricing and positioning on guaranteed business outcomes rather than volume of activity. Reiterate to your market that rapid, low-cost AI output without experienced oversight introduces severe errors and strategic blind spots. Highlight your Proven Process, showing how your leadership and operational expertise filter automated generation to produce reliable results.

Let discount competitors capture the low-margin, price-sensitive segment of the market. Use internal AI automation to expand your own operating margins quietly, while focusing your high-touch human talent on solving complex client challenges that low-cost competitors cannot touch.