Data Is Not A Great Moat Against AI Cannibalization
The cost of Software development is racing toward zero
Data is not a great moat against AI cannibalization. For example, is a startup going to replicate CoStar Group (CSGP) overnight by using AI tools? No. But if I were a deep-pocketed customer and I was interested in 1 or 2 elements of CoStar’s suite and only for my local market, I could likely find an API provider for those data elements and build my own user interface over a weekend, especially if we are talking about internal use.
Perhaps CoStar would be the API provider in that scenario, perhaps not, but data providers such as CSGP will find it increasingly difficult to charge for the bundle and will have to figure out an API strategy.
The number of APIs that will come to market in the next few years is going to explode as the cost of Software development races toward zero.
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