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If you’re considering launching a new venture, one of your initial steps should involve consulting an artificial intelligence chatbot tool, such as OpenAI’s ChatGPT or Anthropic’s Claude.
This perspective comes from Steve Blank, an entrepreneur with extensive experience, having authored several books on starting and managing businesses. With a background that includes co-founding four tech startups, and leading eight in total, his last venture, the software firm Epiphany, was acquired by SSA Global Technologies for $329 million in 2005. After stepping back from the startup scene over twenty years ago, he is now an adjunct professor at Stanford University, where he educates students on innovation and his Lean Startup methodology.
Throughout his career, Blank has emphasized the importance of engaging directly with potential customers to better understand their needs, a process he now believes can be greatly enhanced by AI technology. According to Blank, these tools serve as a catalyst for efficiency in the entrepreneurial journey.
“AI is a force multiplier to everything you do,” Blank shared in an interview with CNBC Make It. He suggests that budding entrepreneurs can leverage AI tools to rapidly explore their ideas, recommending they ask something like, “I have Idea X; has anyone tried it? What challenges did they face? Where should I ideally pursue this?”
Moreover, many AI chatbots can generate comprehensive business plans. By utilizing features available in ChatGPT and similar platforms like Grammarly and Canva, aspiring business owners could save significant funds that would otherwise be spent on professional consultants, according to Blank.
“Imagine having someone like me guiding your questions,” Blank says, describing the AI as a useful consultant that would typically demand substantial fees for their expertise.
AI Functions Like a Brainstorming Partner
Despite their advancements, AI tools are not entirely reliable and often generate responses with inaccuracies, referred to as “hallucinations.” Blank cautions users to approach AI-generated business plans with skepticism.
Nevertheless, Blank contends that these AI tools can still offer valuable insights, especially for novice entrepreneurs looking to refine their business concepts. He likens the process of receiving feedback from AI to having a clever friend who provides ideas — some may not be groundbreaking, but they can spark valuable discussions.
“Taking everything at face value might lead you astray, but the tools provide essential ideas, particularly if you’re new to this,” Blank explains.
To gain clarity on potential business ideas, Blank suggests feeding elementary questions into the AI tool, such as: “I’m considering starting ‘X’. Can you help me find a business model?”, “Who would be my first customers?”, and “What do they care about most?”
AI Is Not a Substitute for Market Research
According to Blank, insights generated by AI should never replace comprehensive market research. Actively engaging with customers is crucial when developing a business concept. Central to the Lean Startup philosophy is the necessity of acquiring feedback from a diverse group of potential clients as early in the development process as possible, leading to more informed decision-making.
AI does not negate the necessity of validating foundational assumptions through direct engagement with the market, Blank warns. “Regardless of the business type, you possess certain assumptions — notably regarding customer identification and their preferences,” he says.
Addressing these queries early on is critical, as they influence the viability and direction of any business initiative. Failing to do this can ultimately jeopardize a startup even before it begins operations.
On the flip side, entrepreneurs resisting the integration of AI tools may find themselves at a competitive disadvantage, Blank notes.
“Choosing to dismiss AI tools is risky. Others who leverage AI effectively are gaining an edge, essentially working with a team of advisors,” he states. Beyond ideation, AI tools can assist overwhelmed founders by streamlining financial management, administrative tasks, and digital design.
“If you choose not to utilize these AI resources, that’s your decision,” Blank remarks. “However, choosing to forgo these tools can ultimately hinder your success.”
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