AI companies can build durable competitive advantages by embedding their products in essential customer workflows. Tech adviser Itay Sagie argues that the key question is not which model performs best in a demonstration, but which product is woven into how a company actually operates. Consider an insurer testing two AI assistants: one handles policy renewals inside the company's systems, follows approval rules and escalates exceptions to employees, while the other remains a tool people occasionally open. A better model could arrive tomorrow, but replacing the first assistant would require changing how the business runs.
Recent deals illustrate the point. Schneider Electric's agreement to acquire PT C for approximately $22.6 billion in equity value gives it software used to design, manufacture and service physical products across their lifecycle. The Synopsys–Open AI partnership reflects similar logic, combining frontier AI with established chip-design tools and expertise. Companies already embedded in complex industries bring the customer relationships, domain expertise and trusted processes that AI developers need to commercialize their technology.
Operational adoption also strengthens defensibility. Eleven Labs reported that its agents handle more than 15 million conversations weekly, including refunds, insurance renewals and healthcare bookings. Once a product connects to internal systems and reliably completes tasks, replacing it involves migration, testing, retraining and operational risk. Integration alone offers limited protection, however. Customers must depend on the product and measure the value it delivers, so investors should examine how much recurring work flows through a platform and what switching would actually require.
Acquisitions can also provide a route into workflows. ServiceNow's acquisition of Moveworks combines an AI assistant and enterprise search with established workflow automation. At completion, Moveworks had 5.5 million employee users, with approximately 250 customers already using both companies' technologies. Acquirers should identify the workflows they want to enter, understand the barriers, and test whether customers depend deeply enough on the target for the relationships to survive the deal. As AI capabilities improve, a secure position inside customer operations could prove a powerful source of lasting advantage.
Source: Crunchbase News · Summarized by HeadlinesBriefing