So what can make a company stand out with a defensible advantage? Here are a few thoughts:
Expert knowledge can separate a product from its generic rivals. While AI can operate at an expert level in some industries, most don’t freely share their hard-earned knowledge online. Many are full of conflicting or just plain bad information. Products that embed true domain expertise, whether through design or direct access, can provide value that generic AI-powered tools simply can’t.
A unique algorithm or capability is another real edge. Not everything is copy-paste. Much of a SaaS product’s value is hidden beneath the surface. Competitors might see the output, but not the mechanism. If your product delivers better results or is just more usable because of a unique solution, that’s a durable moat. Just don’t shout the secret from the rooftops.
Brand still matters. A lot. Even when alternatives are technically similar or cheaper, customers gravitate toward familiar, proven names. The best-known product isn’t always the best-performing one, but it often wins because trust beats specs.
Ecosystems are not easily cloned. If your product sits in the middle of a rich web of users, partners, vendors, and workflows, that entire network becomes a moat. Newcomers can’t just rebuild that overnight. Ecosystem value compounds over time and is hard to disrupt without an equally strong alternative.
And you know what? Most of these advantages have little to do with technology. They’re human. Expert knowledge. Unique insight. Trust earned through brand. The strength of communities and networks. AI can generate, but it doesn’t belong anywhere. Humans do. Maybe the real persistent advantage is the human layer. Something companies shouldn’t ignore as they automate, optimize, and AI-ify everything in sight.
