EVEN A FALSE PERCEPTION OF FUTURE OBSOLESCENCE BY AI CAN HARM A STARTUP COMPANY’S CURRENT PROSPECTS.

There’s an issue I’ve noticed that may be currently affecting the startup ecosystem quite a great deal. Simply stated, it’s the title of this article:

EVEN A FALSE PERCEPTION OF FUTURE OBSOLESCENCE BY AI CAN HARM A STARTUP COMPANY’S CURRENT PROSPECTS.

It’s a big deal for founders. If a company is perceived to be obsoleted soon by AI, it may find it harder hire, harder to raise capital, less able to sell itself or likely to get an acquisition offer.

What’s so insidious about this eco-system wide issue, is that the perception of AI’s disruptive capabilities might be far greater than what it will end up in reality being.

It’s known that CEOs are spooked, with a recent survey revealing that 45% of them don’t believe that their companies will be viable in a decade at their current course. Further, AI is cited as a major factor with 68% believing that AI will make their industries more competitive.

The startup eco-system is already intensely competitive, and adding in the issue of VC business model being under pressure due to interest rates, the new “raising Series SEED/A/B/C round” maybe instead having successfully navigated AI.