Aug 20 • General Discussion 💬
Why AI-First Businesses Fail (And the Agency-to-App Path That Actually Works)
Analyzed a debate about AI agents running every business workflow. Someone said if your systems don't adapt automatically, you're outdated.
Here's my framework: A big mistake I see companies make, especially new ones, is implementing AI too soon.
The reality is more nuanced than "AI everything."
The framework that works: If you're launching a commoditized business, take the validated playbook and implement AI.
But for any blue ocean business, an AI-first approach is a fad.
You don't know what works until you synthesize and validate. Robots can't do that for you.
Let me be honest: They are an efficiency solution, not a proficiency solution.
A skill issue isn't something to outsource - it's like being a franchise relying on an agency for monthly retainers on something outside your expertise.
The best companies have in-house operations to keep costs low and results controlled.
Here's the strategic path: Start with a humanized agency approach doing "done-for-you" B2B services.
An agency can combine AI assistants, AI workflows, and AI apps as service components.
You're still manually inputting prompts and implementing customer data - but you're building expertise.
The transition strategy: Once you validate workflows through agency work, you can transition into an AI application.
But you can't just start with an app. You won't have marketing leverage or a customer base.
Agency work builds both your expertise and your distribution channel.
Why this works: Your existing agency customers become your app beta users.
The brand you built creates demand. Referrals and content give you warm leads.
You can offer a cheaper, faster solution with monthly recurring revenue through a freemium model.
The acquisition insight: Instead of cold outreach (which gets less effective), start with Upwork.
These are problem-aware buyers, not product-aware price shoppers.
Do initial work cheap, compound expertise, get testimonials, create content - build your warm network.
Bottom line: Long-term players build wealth. Short-term trend chasers get rich today and fall out tomorrow.
The AI movement offers evergreen opportunity if you build systematically: Agency → Validation → App → Scale.
Humans must optimize and accelerate first. Period.
Hope you found this valuable! :)
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Why AI-First Businesses Fail (And the Agency-to-App Path That Actually Works)
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