Moats Didn't Die, They Shortened: High Costs Define AI Era Strategy

brucemacv · x · 2026-08-30

Countering the narrative that moats are dead, this analysis argues that they still exist but have fundamentally changed. Competitive advantages that once lasted seven years now shrink to 12–24 months unless companies continuously reinvest in product, data, and distribution. In the AI sector, where competitors are fierce, the new moat is defined by maintaining the best product and high switching costs, forcing CEOs to work relentlessly to sustain their edge.

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