The AI Boom is real, but so is the race to the bottom
We’re currently watching the rise of AI: foundation models are improving, costs are dropping, and every startup pitch deck now has “AI” stamped across the top. But even in this gold rush, not everything built with AI is gold.
We still don’t know which AI industries will be the long-term winners. But we’re starting to clearly see which ones won’t, because they’re on fast track to becoming a commodity.
That’s why we’re going to talk about the industries we think eventually will be a commodity in the near-term.
These are sectors already crowded with startups offering nearly indistinguishable features, usually by wrapping off-the-shelf models (OpenAI, Anthropic, etc.) without clear moats:
Image & Meme Generators: Viral but rarely sticky; tools like Midjourney or Canva now dominate with more polish + user base. Hard to monetize or retain users unless paired with vertical utility.
Meeting Tools & Note-Takers: Competing on UX and speed alone is a race to zero. The market is saturated: Otter, Fireflies, Fathom, Notion AI, Zoom’s native tools.
Writing Assistants: Most use cases are “good enough” already, killing retention for niche players. Blog posts, emails, social copy, all dominated by Jasper, Grammarly, Notion, and ChatGPT itself.
Customer Support Chatbots: Startups offering LLM wrappers for FAQs or ticket triage face rapid pricing and feature pressure. Zendesk, Intercom, Salesforce, and Shopify are embedding generative AI natively.
Resume and Job Matchers: Thin wrappers on GPT that parse CVs and match to job descriptions. Career platforms are quickly incorporating these features in-house.
AI-Powered Pitch Deck & Presentation Builders: Tools that generate decks from prompts (Beautiful.ai, Tome). Feature creep from Google Slides, Canva, and Notion will squeeze them.
AI Tutors & EdTech Chatbots: Language learning, test prep, and basic tutoring bots built on LLMs. Without human engagement or school integration, most struggle with retention and pedagogy.
AI Video Editors & Script Writers: Tools that auto-edit or cut short-form content from long videos. Valuable, but increasingly bundled inside platform-native offerings (TikTok, Adobe).
AI Email Responders & Inbox Organizers: Microsoft 365 and Gmail are already integrating these capabilities directly.
AI Sales Agents & Automated CRMs: Most of these tools are built on OpenAI, Claude, or Cohere APIs with simple prompt engineering. Salesforce, HubSpot, Zoho, and Pipedrive are rapidly embedding these AI tools natively.
What these startups have in common
They solve problems that are real, but not painful enough to pay for long-term.
They depend entirely on third-party models with no proprietary layer.
They lack distribution, or defensibility.
Their UX advantage is measured in months, not years.
Where the real moats are emerging
To avoid betting on features, we look for companies that:
Build on unique or proprietary data (enterprise workflows.
Focus on non-common verticals (industrial automation, legal ops, scientific discovery).
Operate in regulated or trust-sensitive markets (healthcare, fintech, government).
Leverage AI to change cost structures, not just speed up tasks.
We should learn how to differentiate
The “AI layer” will become as expected as the “cloud” layer. In the same way that cloud-native startups needed more than AWS to win, AI-first startups will need more than an API key.
So if you're building or backing an AI company, ask:
Is this a product, or a feature? Is this solving a deep pain, or a convenience? And will this still matter when everyone has the same tools?
The AI age is just getting started. But so is the wave of commoditization. We should start thinking on building on top of this industries that eventually will be affected, not only by offering the basic features that already exist, but instead start building something new that will add true value.
A Few Kilometers, A Lot of Big Ideas
Over the last few weeks, we’ve run alongside some amazing founders (literally). Through our Pitch & Run activity, we’ve met incredible people solving huge problems in LATAM, and the conversations have been way more fun (and honest) than your usual Zoom call. See photos below.
There’s something about running early in the morning that makes ideas flow better and helps us really get to know the person behind the pitch.
We’re really happy with how this format has played out, and the good news is: we still have a few open spots this month.
If you’re raising your first institutional round and want to start your day with a jog and a good convo, apply here.
Portfolio Companies
News about our Portfolio Companies
Portfolio companies currently raising investment rounds
Pari: Pari Delivery is a Mexican startup redefining the beverage and convenience delivery experience through a fast, seamless, and reliable on-demand platform. Currently raising an investment round.
Medu: They manufacture sustainable personal protective clothing with the necessary technology to be reused, replacing hundreds of disposable suits and allowing up to 50 washing cycles without losing safety properties. Currently raising a $2M USD round.
Ximple: They are transforming financial access in Latin America by empowering resellers with working capital, digital tools, and new income opportunities. Currently raising their seed round.
Supervisor AI: A platform to convert every business conversation generated into growth opportunities and actionable insights. Currently raising a $750k USD investment round.
Please don’t hesitate to contact us in case you are interested in connecting with any of these amazing companies.
Great companies we have recently reviewed:
Vera AI: In-store sales conversations turned into insights and revenue with Al.
Bucks: A Real-Time Financial Planning Platform.
Recommendations of the month:
Your Next Five Moves: Master the Art of Business Strategy - Patrick Bet-David: "Your Next Five Moves" is a strategic playbook for entrepreneurs and leaders, offering clear frameworks to think ahead, build winning teams, and scale with purpose and precision.
Here's the Advice I Give All of Our First-Time Founders - Brett Berson.