Why AI Models Alone Won't Build Viable Businesses
Source: Featured Blogs - Forrester
Frontier AI labs are learning what enterprise software mastered decades ago: raw capability doesn't guarantee defensible revenue or durable advantage without distribution, lock-in, and operational moats. The shift toward "model platforms"—bundling inference, fine-tuning, and application layers—reflects that pure weights-and-biases plays are commoditizing faster than expected, forcing OpenAI, Anthropic, and others to compete on go-to-market and stickiness rather than model superiority alone. For brands and growth operators, competitive advantage will accrue to whoever owns the workflow, controls the data loop, and embeds switching costs. This favors platforms with existing enterprise relationships and embedded use cases over pure research shops.