The article discusses a mental model called the Critical Frequency Matrix to identify valuable AI startup opportunities within enterprises.
It categorizes enterprise tasks based on frequency and criticality to create a simplified fingerprint of the business.
Tasks that are low-frequency and high-criticality, like major corporate pivots or crisis management, are where human leadership shines over AI automation.
High-frequency, high-criticality tasks offer market opportunities but pose challenges for AI agents, requiring near-perfect reliability and accuracy.
Low-criticality, high-frequency tasks, such as routine customer support inquiries, are ideal for automation through AI systems.
Low-frequency, low-criticality tasks offer potential through generalized AI assistance but require exceptional adaptability and intelligence.
The market value of automating a task increases with frequency and criticality, with tasks being more valuable when they are both frequent and essential to the business.
The article suggests focusing on tasks that cause constant pain as they may hold higher business value than solving episodic pain.
The framework helps investors focus on enterprise value and identifies areas with potential for new AI-native ventures.
It provides a checklist for building an AI-native startup and emphasizes the importance of addressing interconnected tasks effectively.