Advantage of Incumbents in AI by Leveraging Customer Data and Workflows

The advantage in AI lies with incumbents in established software categories, such as CRM and TSMAI, due to their possession of trusted customer data and workflows. The existing customer trust and data security eliminate the need to transfer information, providing a seamless environment. This advantage reduces the innovator's dilemma in pure software categories and allows incumbents to offer more value to customers through AI. Startups are more likely to succeed in disrupting new economy categories rather than established software categories, as the past decades have focused on making software a layer above human activities.