What Is The Competitive Advantage Of LLMs Like ChatGPT For Your Business? Three Takeaways

The Rise of Large Language Models (LLMs): A New Business Moat?

As a Digital Lecturer and Advisor, I have been asked many times about the potential for large language models (LLMs) to create an unassailable competitive advantage for businesses. It's a valid question considering the hype around LLMs, and how they are changing the way we interact with technology. However, to understand the true impact of LLMs, we need to analyze the business moat, which remains the same despite advances in technology.

At their core, AI-driven businesses have a combination of either a model moat, a data moat, or the brand moat. LLMs like OpenAI's GPT model can give businesses an advantage in all three areas, but it is by no means a given. In fact, some businesses utilizing LLMs may only have a brand moat, like ChatGPT.?

Since OpenAI launched ChatGPT, there has been a surge of startups announcing their AI-enabled features. The industry is hyped, and many VCs are driven by their FOMO (Fear of Missing Out) regarding investment decisions. However, investing in a startup that is just an LLM wrapper around a product feature may not be the optimal strategy.

The reality is that LLMs are new, and it takes time for new technologies to find the best user fit. We've seen this before with the early days of the internet, where everything needed to be a website, or even earlier when nascent TV filmed radio shows. The last significant shift in user interface was mobile, and my friend Jasper called the LLM hype the "Mobile Moment" of recent times. However, during the onset of mobile, it took several years to understand that the "home feed" is the best way to engage with the mobile screen. Swiping was not a way to engage initially.

This means that product adoption of LLMs will take time, and businesses need to focus on the different levers to differentiate. The three moats of Model, Data, and Stickiness (Brand) are still the key to competitive advantage, and LLMs can help in all three areas. However, a strategic approach is required to invest time and money into businesses utilizing LLMs.?

In conclusion, LLMs are a new technology that offers fantastic potential, but the hype around them should be viewed with caution. Businesses need to consider their unique competitive advantage and identify how LLMs can fit into that strategy to create a sustainable advantage. It's time to start the conversation on how LLMs can be utilized in the most effective way for businesses.

As a Digital Lecturer and Advisor, I understand the power that LLMs like ChatGPT hold for businesses looking to stay ahead of the curve. After reading my latest article on LinkedIn, you may be wondering how ChatGPT and other LLMs can specifically benefit your business. As an expert in the field, I can help you navigate the complexities of integrating LLMs into your business strategy. From identifying the right tools to customizing solutions for your specific needs, I will work with you every step of the way to ensure your success.?

Don't wait to take advantage of the benefits that LLMs like ChatGPT have to offer. Contact me today to learn more about how I can help your business gain a competitive edge in the digital age.