Smaller startups can win in an AI-first world by going niche and dominating a specific vertical rather than trying to compete with giants like OpenAI or Google.
The execution for going niche and going big in AI differs, with deep specialization proving to beat broad general AI in many cases.
Successful AI startups rebuild their products from the ground up, making entire categories obsolete rather than just adding AI as an enhancement.
Combining product-led growth (PLG) with high-touch enterprise sales is essential for AI SaaS companies, as AI is new, complex, and requires human interaction for larger contracts.