OpenAI has introduced new features to ChatGPT Plus, affecting AI startups. Users can now access all ChatGPT tools without switching, including Browsing, Advanced Data Analysis, and DALL-E. PDF analysis, previously available through plugins, is now integrated. This move disrupts the business model of startups that developed these plugins. The impact on AI startups is significant as they lack the protection of an underlying model, making it harder for them to sell their features and justify subscription fees. Additionally, OpenAI’s ability to incorporate successful applications into ChatGPT represents a threat to startups.
AI Startups Feel the Heat as OpenAI Adds ChatGPT Features
OpenAI has recently introduced new features to its ChatGPT Plus users, causing a negative impact on some AI startups. These new features have disrupted the business model of several startups that provided similar functionalities through plugins.
ChatGPT now supports the uploading and analysis of various file types, including PDFs, without the need for specific tools or plugins. This addition has made it challenging for startups that offered PDF analysis services to compete.
Large corporations like Google and Meta have discussions on the need for a “moat” to protect their AI products. Smaller startups often build features as standalone products, making them vulnerable to OpenAI’s ability to add those features to ChatGPT directly.
The introduction of new features has raised concerns among AI startups that rely on OpenAI’s technology. Not owning the underlying model puts these startups at a significant risk.
As more people explore creative ways to use OpenAI’s API, they inadvertently provide market research and validation for the company. Similar to Amazon, which observes successful products from third-party sellers and adds them to its own range, OpenAI benefits from users’ innovative applications.
AI startups that rely on ChatGPT, like JasperAI, have experienced similar pressures in the past. The more features ChatGPT offers, the harder it becomes for these startups to convince users to pay for their products instead of opting for ChatGPT Plus.
Practical Solutions for Evolving with AI
If you want to leverage AI to evolve your company and stay competitive, consider the following steps:
- Identify Automation Opportunities: Locate key customer interaction points that can benefit from AI.
- Define KPIs: Ensure your AI endeavors have measurable impacts on business outcomes.
- Select an AI Solution: Choose tools that align with your needs and provide customization.
- Implement Gradually: Start with a pilot, gather data, and expand AI usage judiciously.
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