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Enterprise AI products are underwhelming

created: Sometime 2024

Despite the flood of enterprise AI products hitting the market, I've yet to see one that truly deserves the "enterprise-grade" label. Most focus on standard enterprise checkboxes - better security, rate limits, SOC 2 compliance, dedicated support. These are table stakes and what we now call being "enterprise". But they're missing what I believe is the fundamental differentiator: more intelligent compute allocation.

When we started our company, we initially focused on helping enterprises automate large volumes of work. But I've been thinking more about a different axis of differentiation - the ability to intelligently deploy more computational resources for higher quality outputs.

Think about it - enterprise customers can afford to spend more on compute. And we know from AI scaling laws that more compute generally means better output. Yet most enterprise AI products are essentially consumer-grade tools with a SOC 2 certificate.

Imagine a system where enterprises could allocate significantly more compute for critical tasks. A marketing team could generate high-quality video content using more sophisticated models and better seed material. Report generation could leverage 10x more compute for deeper analysis. Have agents work non-stop on important code (I guess Devin is working on that).

It's almost surprising that large enterprises are using the same models and products as individual users and mom-and-pop shops. With proper compute allocation and better input data, they could produce consistently superior content that is actually enterprise-grade.

True enterprise AI differentiation should come from two capabilities:

  • Processing enterprise-scale data volumes to deliver exponentially more value

  • Generating substantially higher-quality outputs by strategically allocating more compute based on task importance

The real opportunity lies in building systems that leverage this willingness to spend. A contract review might warrant 10x more compute than a basic summary. A strategic analysis might justify 100x more. Enterprise customers would pay for this quality difference.