Discussion about this post

User's avatar
Jakob's avatar

Hey Matt - am following you because I have been thinking much about the potential of AI led & run companies - and when we can expect the tipping point where that operating system will become a “commodity” - because it will.

I first thought that an early telltale would be an AI consultancy firm. Easier to build than a company that has to e.g. move physical goods or create non-knowledge-only services. Low starting costs. Etc. But I quickly realised that political liability is core to the value proposition of human consultancy firms. (Nobody was fired for hiring ..)

At the same time, I could not see how anyone from the inside of a company would acquire mandate or incentives to replace themselves to the degree your experiment runs.

My conclusion then became that the playbook is:

Purchase (cheap) companies and run them with an AI operating system. The product is primarily the AI operating system

Every failure increases the value of that AI operating system (think Hegel)

Every success increases the value of that AI operating system AND the acquired business

Once the AI operating system beats human led & run businesses you can e.g.

Sell it as subscription to any PE firm etc that wants to use the same playbook

.. additional options

Regardless of the exact playbook - sum of my message is; failing actually matters too! Perhaps the most. The AI model becomes better when you fail. But I see how your post also highlights that it is indeed a wise decision to find a business idea with high “turnover rate” vs long eg legal/procurement cycles etc.

The next person who will want to do this, will look at your 100 failures and decide that if they acquire you they will avoid the first 100 failures in their ramp-up plan. Value!

Also; (assuming you have not yet done this..) remember to build a layer beneath your company that gathers extensive metadata about itself as you build this out. That's how you turn this into a valuable product. In order to be able to lift and shift this across businesses, it must understand why it is structured in a certain way - not just know its current final state. There is lot of intelligence that is otherwise lost and you risk that the model drifts backwards in its evolutionary timeline (Hegel again?)

(Above written entirely on my phone w/o AI)

4 more comments...

No posts

Ready for more?