Surviving the Wave of Artificial Intelligence

Emerging technologies have always played a significant role in shaping the business landscape. Following the financial crisis of 2008, we witnessed the rise of fintech, which transformed traditional financial services by providing millions of previously unbanked individuals with access to financial tools for the first time. Many founders devoted themselves to building fintech ventures, and investment naturally flowed into the sector.

Subsequently, the wave of Web3 and blockchain emerged, promising innovations in decentralized finance, digital identity, smart contracts, and NFTs. Once again, founders redirected their focus, and capital followed their lead. Around the same period, extended reality, encompassing VR, AR and XR, captured imaginations, while the deeptech wave attracted ambitious innovators seeking to solve complex problems.

Today, we are in a new chapter defined by AI and machine learning. What distinguishes this moment is that AI is not confined to a single sector. It is a universal technology with applications across every industry. For the first time, every venture must consider how to adapt to this wave, or risk being left behind.

Why Some Ventures Endure and Others Disappear

With each technological wave, numerous ventures emerge, yet only a few endure. Those that survive design their models based on the logic of their industry, while those that fail often rely excessively on the materials of the moment. This term was used by David Deutsch, in his book “The Fabric of Reality and later in The Beginning of Infinity”, refers to;

Logic as the underlying principle or reasoning that makes a solution possible. It is not tied to the tools of today, but rather to the structure of the problem itself. For instance, computation is founded on the logic of processing information, regardless of whether it is implemented with vacuum tubes, silicon chips, or quantum systems.

Materials, by contrast, are the physical elements or technologies available at a given moment. They are temporary and subject to change. A computer in the 1830s might have been composed of brass and gears, in the 1900s of vacuum tubes, and today of silicon and circuits. While the materials change over time, the logic of computing remains constant.

For entrepreneurs, this distinction is of critical importance. Those who focus solely on materials risk building on shifting ground, as today’s tools will inevitably be replaced. Those who anchor their ventures in logic, however, can adapt their materials as technology evolves, while remaining true to the essence of the problem they are solving.

The Current Race with Artificial Intelligence

A common challenge today is that many entrepreneurs rush to bring solutions to market without a deep understanding of the logic within their industry. In the current race with AI, this pattern is repeating itself. Nearly every venture now presents itself as an AI venture, yet simply incorporating AI into a product does not guarantee long-term relevance.

The more prudent approach is to revisit the logic and business model of your venture within the context of your sector. One should ask whether the venture is being built to address the enduring logic of the problem or merely to leverage the materials of the moment. It is useful to examine how the tools employed today serve the underlying logic of the venture while remaining flexible enough to adapt when new technologies emerge. Failure to do so risks not only irrelevance but also the loss of customer trust and market position.

A Call to Entrepreneurs

As AI reshapes industries, the temptation to act quickly is strong. Yet speed without clarity often results in ventures that fade as the wave passes. Ventures that endure are those that pause to reflect and ask the deeper questions:

• What is the core logic of my venture?

• Do the materials I use today align with that logic?

• Am I prepared to adapt as technology evolves?

The answers to these questions will distinguish those who thrive from those who disappear. AI might seem to be another trend; but it is a force that touches every industry. However, the ventures that succeed in this era will not be those that pursue AI for its own sake. They will be the ones that align new tools with timeless logic, focusing on solving problems that truly matter.