Analysis: Only Two Competitive Advantages Endure in the AI Era

A recent analysis by Crunchbase News and Mighty Capital has pinpointed two core competitive advantages, termed "moats," that are likely to withstand the artificial intelligence era. The report emphasizes that simply stating a product "uses AI" is no longer a differentiator, as AI integration is now ubiquitous across new products.

The study, which examined 576 AI-focused B2B companies that secured over $50 million in funding since early 2025 using Hamilton Helmer's "7 Powers" framework, concludes that in an environment where building is nearly free, enduring advantages stem from elements an AI model cannot intrinsically create.

The first identified moat is "counter-positioning." This occurs when a new entrant establishes a business model so fundamentally different that incumbents cannot replicate it without undermining their own economics, citing Netflix versus Blockbuster as a prime example. Only 5% of the companies analyzed leverage this strategy, yet it commands the highest valuation multiple.

The second enduring advantage is "network economies," where a product's value increases for each user as more users join. Despite appearing in only 5% of companies, this offers a highly capital-efficient path to significant valuation premiums. The analysis highlights that B2B network effects, particularly those built on accumulating and compounding data across company interactions, are often underappreciated.

The report cautions against commonly perceived moats such as proprietary data or intellectual property ("cornered resources") and switching costs. These are often vulnerable in the AI age, as data can become obsolete, and building high switching costs is expensive. Companies aiming for long-term success must focus on structural advantages that AI cannot replicate.