Model advantages fade, data and brand loyalty offer lasting protection.
First, be cautious with claims about a Model Moat. A model moat is most likely only transient at best, and models will often be available as open source. Second, focus on Data Moats. Data moats offer a more sustainable advantage, and exclusive access to proprietary data can be a significant barrier to entry, but data needs to create value. Third, Stickiness Moat. Brand can create a powerful competitive advantage if startups focus on user happiness.
— What Is The Competitive Advantage Of LLMs Like ChatGPT For Your Business? Three Takeaways. · Forbes