Siddharth Saoji 
In today’s rapidly evolving AI landscape, I’ve been reflecting on where small players like solopreneurs and micro-teams can actually create sustainable value. My conclusion might surprise you: avoid building pure AI software plays.
The AI Software Dilemma
As generative AI advances at breakneck speed, building standalone AI-powered software as a small player faces two significant challenges:
- General-purpose models are becoming increasingly capable — They’re absorbing more functionalities that previously required specialized applications
- Incumbents can easily add AI features — Large companies can quickly add similar capabilities as side features to their established products
Project management is a perfect example. When major platforms like Asana and Monday.com integrated AI assistants for task organization, summarization, and prioritization, it immediately diminished the value proposition of many AI project management startups. Users naturally gravitate toward trusted, established platforms rather than new, unproven alternatives — regardless of how innovative they might be.
Where Small Players Can Win
The real opportunity might lie in augmenting something you already have that possesses unique value. Consider assets like:
- Your established YouTube/Instagram channel
- A niche blog with dedicated readers
- Specialized services you provide to clients
By using AI to enhance, transform, or pivot these existing value sources, you create something that’s:
- Built on an already-validated foundation
- Differentiated by your unique perspective or skill
- Less vulnerable to being made obsolete overnight
The Sustainability Test
When evaluating an AI business idea, ask yourself: “Would this have value even without AI?” If the answer is no, you might be building on quicksand.
Looking Forward
As models grow more powerful and accessible, the window for pure AI middleware or enabling technologies from small players narrows. The winners will be those who leverage AI to amplify their existing strengths rather than trying to compete on AI capabilities alone.
Your competitive advantage isn’t in the AI — it’s in what you’re bringing to the AI.