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Ni Yunhua: How startups can use AI to improve their competitive advantage

author:Ni Yunhua new knowledge

Why do startups have to jump on the AI wave? (Why are startups so enthusiastic about AI these days?)

For startups, the rise of AI and open source technologies presents unprecedented opportunities.

The development of AI technology enables startups to use advanced algorithms and big data to provide users with better products and services, and startups can save a lot of time and resources in the innovation process and turn ideas into reality faster.

Ni Yunhua: How startups can use AI to improve their competitive advantage

With the development of AI and big data technology, more and more companies use AI to build system intelligence and change traditional business models, and open source AI models and tools provide unprecedented technical advantages for start-ups and lower the technical threshold for entrepreneurs facing large companies.

Historically, technological innovation and intellectual property were the main ways for businesses to gain a competitive advantage, but in the AI era, building system intelligence with open-source tools has become an opportunity for startups.

"Opportunities from AI"

The development of AI technology has changed the way we process and understand information.

Large language models, such as GPT-4 and LlaMA, can understand and generate human language, enabling humans to communicate more naturally with machines.

The development of this technology provides new opportunities for startups to develop smarter products and services.

At the same time, open source technologies are changing the face of business, and open source models break the proprietary advantages of large companies, making them available and improved by everyone.

This openness allows startups to innovate faster, saving significant development time and resources.

When AI technology and open source technology are combined, unexpected sparks collide.

Take LLaMA, an open-source, large-scale language model that understands and generates human language. The open source of this model makes it available and improved by everyone, thus promoting the development of AI technology.

Ni Yunhua: How startups can use AI to improve their competitive advantage

Startups using this model can develop smarter products and services without investing a lot of time and resources to develop their own models.

What's more, the emergence of open source models has allowed startups to innovate faster, saving significant development time and resources.

For example, Google's internal memo once complained, "We don't have a moat, and neither does OpenAI." ”

That's because open source models, such as LLaMA and Alpaca, are undermining the monopoly advantage of Google and OpenAI.

"A New Moat in the AI Era: System Intelligence"

System intelligence, simply put, is the use of AI technology to improve the intelligence of the entire system. This intelligence can help companies better understand their customers and provide better products and services.

For example, by analyzing customer behavior data, companies can understand the needs and preferences of their customers to provide more personalized services.

In this new model, startups are no longer just providers of products or services, but drivers of innovation.

Ni Yunhua: How startups can use AI to improve their competitive advantage

They use AI to provide better products and services, while also leveraging open source technology to innovate faster to gain an edge over the competition.

Airbnb is an online short-term rental platform that uses AI to analyze users' travel needs and preferences and recommend the right places to stay and destinations for them.

Airbnb also uses user-to-user reviews and feedback to improve the quality and user experience of your listing. Airbnb used an open-source AI model Scikit-learn to build its price prediction system.

"Building Sustainable Competitiveness"

Based on system intelligence, companies can build traditional moats with high switching costs and high network effects.

For example, by providing high-quality services, companies can attract and retain customers, resulting in high switching costs. At the same time, by building communities, companies can create network effects that attract more users.

These users will not only use the company's products, but also participate in the community, sharing their experiences and suggestions, thus attracting more new users.

Starbucks is a coffee chain that uses AI technology to enhance the quality and functionality of its products and services, such as personalized recommendations, mobile payments, and digital membership.

But Starbucks' core competitive advantage remains its strong brand, scale and distribution channels.

Starbucks' brand stands for taste, socialization and responsibility; Starbucks' size allows it to diversify and standardize; Starbucks' distribution channels allow it to reach global markets and users.

Starbucks shows how AI technology can be used to optimize existing business models, combined with system intelligence to create a stronger and more lasting competitive advantage.

In the AI era, the moat of business no longer depends solely on traditional brands, scale, and distribution channels, and startups that can integrate AI technology and open source technology into their business models to improve service quality, optimize product design and improve operational efficiency will be in a strong position to compete fiercely.

The open source model has broken the traditional technical barrier, and AI technology is also reshaping the rules of business. In this era of AI, startups that can deeply understand and utilize AI technology will become the leaders of the future.

Today, we are at a transition point where AI will be everywhere. The wave of AI triggered by ChatGPT is comparable in scale to the industrial revolution and the invention of electricity.

The competition in the future is not a competition between people and artificial intelligence AI, but a competition between people who have mastered AI and those who have not mastered AI.

Being one step ahead and mastering the most popular AI tools and knowledge today will make you super competitive in your future life and workplace.

In the AI era, become a super individual, please act now!