Generative AI: A Commodity, Not A Unique Proposition

In today's era of digital transformation, everyone is sprinting to harness the power of generative AI. Indeed, it seems as though the "AI train" has left the station, and those not on board risk being left behind. It's an exciting period, mirroring the foundational shifts of the internet and cloud computing. But amidst the enthusiasm, it's crucial to remember an old adage: "if everyone is special, no one is special."

The question arises: has generative AI become a mere differentiator, or is it now table-stakes?

What are Differentiators and Table-stakes?

Let's begin by understanding the terminology. A differentiator is something that allows a distinction to be made - an edge that sets a company or product apart from the rest. Table-stakes, on the other hand, refer to the minimum offerings required to be considered a player in the market.

The Evolution of Generative AI

When generative AI platforms first made their entrance, the buzz was palpable. Early adopters tweaked their products to harness this new technology, scoring differentiation and gaining the coveted first-mover advantage. However, the low entry barriers for initial uses of generative AI meant many competitors were hot on their heels, rapidly debuting their own generative AI capabilities. Suddenly, the differentiation vanished, and the first-mover advantage became obsolete.

As generative AI becomes the norm, customer buying behaviors are changing. Consumers are unlikely to choose your product simply because it has generative AI capabilities and your competitor's doesn't. Instead, they're likely to overlook products without generative AI, viewing them as outdated or not in keeping with the times.

Thus, generative AI is quickly becoming table stakes, a prerequisite rather than a unique selling proposition.

Beyond Table-stakes: Embracing Innovation

So how should businesses respond? Firstly, recognize generative AI for what it is – table stakes. You'll need to assure your customers that you're keeping pace with technology.

Secondly, don't rest on your laurels. It's perfectly fine to debut with something similar to your competitors, showing that you're part of the AI race. However, don't stop there. Strive for true innovation. Ask how you can use these technological capabilities to propel your business forward. What can you now achieve that was impossible before?

This leap of innovation enabled by generative AI can lead to real differentiation. It can open up new markets, revolutionize your industry, or even challenge the status quo.

While generative AI assisting in writing a blog post or editing a photo background is incrementally useful, it's hardly game-changing. The key is to look beyond merely utilizing the technology to uncovering what can be done now that this technology is available. This is the frontier where true differentiation lies, and it's this frontier that forward-thinking businesses should be striving to reach.