AI Didn't Kill Real Moats, It Killed the Fake Ones
AccBalanced · x · 2026-08-31
This post argues that AI hasn't destroyed real business moats (like network effects and data) but has effectively eliminated the fake ones.
- Fake Moats: Previously, companies could lock in customers by building complex software with high integration costs. Even mediocre software could retain users simply because switching was too expensive.
- AI's Impact: AI has lowered the cost of building software and significantly reduced migration costs. Customers are no longer held hostage by mediocre tools, forcing competition to focus on product quality.
This counters the narrative that "moats are dead," suggesting that while genuine moats remain, the strategy of trapping users through complexity is no longer viable.
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