Why these 3 moats get more valuable as AI makes intelligence cheap

We're entering an era where intelligence is becoming commodified.

Advanced AI models like OpenAI's o3 and DeepSeek's R1 are effectively giving everyone "pocket PhDs," making specialized knowledge widely accessible. Y Combinator's Spring 2025 “request for startups” list further confirms this trend: the target is to make AI the default "new hire" across knowledge-work industries. This trend will only accelerate.

In this fast-approaching, new era of intellectual abundance, three key areas stand out to me as defensible moats:

Creativity:
Novel innovation and design thinking are becoming the primary differentiators in the AI era. AI tools can generate endless variations, but currently lack the human spark for truly original concepts. Successful teams are mastering the art of rapid ideation and validation. Design excellence is overtaking technical prowess as the key success factor, precisely because AI is leveling the technical playing field. The future belongs to those who can consistently produce breakthrough ideas that AI alone cannot conceive.

Physical Systems:
Building real-world products remains a formidable challenge that AI cannot easily solve. Complex manufacturing processes still demand specialized expertise and significant capital investment. Supply chain mastery and hardware innovation continue to separate leaders from followers. Companies must navigate intricate regulatory and safety requirements. Those who master these physical complexities will create lasting competitive advantages.

Distribution:
The ability to capture and maintain audience attention is becoming increasingly valuable. Building authentic communities requires deep understanding of human psychology and genuine connection. AI can amplify reach, but cannot currently replace real human connection. Successful distribution demands consistent delivery of relevant value to specific audiences. Companies with strong distribution moats will continue to dominate their markets regardless of AI advancement.

As AI revolutionizes knowledge work, success will belong to those who leverage these three moats. The future is particularly bright for teams that combine at least two of these areas, using AI as both multiplier and optimizer.

Build your unfair advantage.