When Openai launched ChatGPT in late 2022, everything changed. AI is not just a new technology, it has become a topic of home. Investors scramble to fund AI startups, and founders rushed to attach “AI” to their branding. Suddenly, it seemed all the companies were “AI companies.” The .ai domain has become trendy, and the phrase “AI-equipped” has started to pop up everywhere, from pitch decks to product descriptions.
But the problem is: Branding startups with AI is shortsighted. If history is a guide, AI like electricity and the internet becomes the more basic it disappears into the background. It’s not a differentiator. That’s what I expect. A thriving company is not a company that leads in “AI-First” messaging, but a company that brings real and enduring value.
Multifaceted impacts of AI branding
1. Hype Trap: Mistakes Identity Tools
I’ve seen this pattern before. When new technology emerges, companies focus on its branding.
During Dot-Com Boom, businesses added “.com” to their names, even if they only rode the waves, even if they had nothing to do with the Internet. Some pivoted their entire identity to make it look more “digital.” During the blockchain era, companies jumped on hype trains, and ice tea companies rebranded “Long Blockchain Corporation.” It simply cashes in investor enthusiasm. Then there’s app trends, Web3, and now AI has arrived. This is used by modern technology companies as a crutch in their branding.
Patterns are repeated: Technology gets hottering Companies that define themselves by the tools they use, not the value that creates risk left behind when novelty disappears.
From hype to true value
2. AI is new electricity, but that’s the key
In 2017, Andrew Ng said:
“AI is new electricity.”
He wasn’t wrong. Electricity has changed not only light bulbs, but the entire industry, the transformed economy, and the lives of humans. But over time it became an infrastructure. Today, no companies are advertising themselves as “power-equipped.” It’s something that was given.
AI follows the same trajectory. Today, it’s still a selling point, but soon it becomes part of the foundation. This is something you can’t see for yourself.
Spotify does not sell it as an “AI-powered music platform.” This simply provides a weekly playlist of perfect discoveries. Tesla is not leading the way in “AI-powered driving.” This focuses on this experience. Rather than increasing machine learning capabilities, John Deere helps farmers get better crop yields.
Don’t build a brand around the hammer. Please build it around the house.
Focus on the results, not on the tools
3. Openai example
Let’s talk about Openai. This is the company that launched this latest AI Gold Rush.
You think they’re leaning hard towards trends, right? Do you also use open.ai as a domain? no. Instead, I chose Openai.com.
It was not an accident.
Openai may have been able to take advantage of AI hype more than anyone else, but instead built its brand around its mission, not its technology itself. They focused on trust, research, and long-term goals, and created names for something bigger than AI.
And they are not alone.
Humanity, who is the creator of Claude, also uses anthropic.com, rather than a flashy .ai domain. X (formerly Twitter) builds AI tools like Grok, but its branding is not AI-centric. Google Deepmind, a major AI laboratory, does not sell it as “AI-First.” It focuses on groundbreaking discoveries and applications.
Take it home?
The strongest players in AI do not brand them mainly about AI. They’re building mission-driven companies that just happen to use it.
How should AI companies approach branding?
4. Hype is coming out
The AI hype cycle runs at full speed, with talks, virus tweets and a billion-dollar fundraising round to hype AI as the answer to everything.
But reality is catching up.
The 2024 MIT Technology Review Report found that many AI-First startups cannot deliver meaningful results. CrunchBase reported a 20% drop in funding from AI startups last year, indicating that investors are no longer blindly buying to hype.
One of the biggest flops? “Chat-O-Tron” is an AI chatbot company that raised $300 million on bold promises, but collapsed after it found out it was unreliable. Currently, we are in a hurry to rebrand as an “automation solution provider.”
“Another AI scam bites dust.” – x user
lesson? AI is not sufficient. It’s all about execution.
5. Branding Trap: One-way ticket to unrelated
Branding yourself as an “AI Company” might seem like a shortcut to reliability, but it’s a trap.
It makes you one of thousands and isn’t unique. Focus on customer issues and tech stacks. As AI becomes more common, it does not age.
The best brands don’t lead the tools. They lead with their shock.
AI Branding Analysis (SWOT)
6. Customers do not purchase AI. They buy value and results.
I don’t care if your product uses AI, blockchain or fairy dust. They care what it does for them.
They want:
Faster results Smarter recommendations Simple experience experiences tangible benefits
Customers do not purchase AI. They buy value.
When Netflix proposes the perfect movie, you don’t think about its AI model. You just appreciate the recommendation. Once Waze finds the best route, it doesn’t bother with that algorithm. Just avoid traffic.
“Ai is like salt. You don’t notice when it’s perfect, but you miss it when it’s gone.”
7. The real value looks like this
Companies with the best AI don’t promote AI. They’re solving the real problem.
A healthcare platform that uses AI to detect cancer early. A logistics company that optimizes routes to reduce emissions. Retailers who use AI to improve inventory forecasts and prevent waste.
McKinsey found that companies that treat AI as infrastructure do double the AI-First Companies rather than identity.
8. Let’s become an outlet, not a spark
If AI is electricity, don’t spark.
It will be an outlet.
Sparks have been catching attention for a while, but outlets offer consistent and reliable power. Nikola Tesla did not sell electricity as a gimmick. He made it useful. The last startup uses AI as a tool to solve real problems. It solves real problems rather than as a buzzword.
“AI is invisible, but it’s a clutch” – xuser
9. AI’s transformational journey is not about hype, it’s about impact
AI is not a selling point. That’s not a story. The true conversion doesn’t happen on pitch decks packed with flashy demos and buzzwords. It’s happening in the way AI rebuilds the industry from within.
We are now in the transition phase. AI is shifting from novelty to expectations, like electricity, the Internet and mobile technology. Companies that have overcome this shift do not brand themselves around AI. They will be the ones that use it to solve the real problem.
1. AI offloads the mundane and enhances human work
Technology is not going to replace people. It makes them more effective.
Healthcare: AI scans medical images in seconds and flags abnormalities for doctors to review. It does not replace expertise. Doctors will spend more time focusing on complex cases. Software Development: AI catches coding errors and automates testing. Developers ship products faster without getting lost in debugging. Customer Service: AI handles everyday questions and frees human agents for high value interactions.
This is the pattern. AI is not a standalone product. It’s an infrastructure that removes friction and increases productivity across the industry.
2. AI is expanding what is possible
The real impact is not to automate what already exists, but to enable what was once impossible.
AI-powered drug discovery means reducing the time it takes to develop new treatments. AI-driven climate models improve disaster forecasting and help reduce damage before it happens. Financial AI detects fraud in real time and prevents massive losses.
This is not about AI as a branding tool. This is about solving problems at a scale that was previously not feasible.
3. I can’t see the best AI job
The most transformative technologies do not require attention. They’re just things that work.
Google does not sell “AI-equipped search.” It just provides the right results. Netflix doesn’t push “AI Curation Recommendations.” It will help you find what you see. Waze does not promote “AI Navigation.” It takes you where you need to go.
The more AI is expected, the less it will be talked about. That’s the mechanism of basic technology. It’s so seamlessly integrated that people stop realizing it.
4. Shift: From function to expectations
AI is where the internet was in the late 90s. Company believes that is a differentiator. That won’t continue.
The Internet was once a selling point. It is now assumed. Mobile used to be a feature. It’s now the default. AI is next. It does not make the product special. It will become part of the foundation.
Companies that still brand themselves as “AI-First” in five years sound as outdated as today’s companies today calling themselves “with the internet.”
Winning companies won’t talk about AI – they’ll just deliver
Startups that focus on branding themselves as AI companies are missing out on the points. Winners use AI to drive real results and focus on identity.
AI is not a differentiator. It will be executed. AI is not the reason customers choose their products. The result will be that way. AI is not a selling point. That would just be expected.
So while some companies are still chasing the AI label, actual players are already moving ahead. They use AI as a tool, not as a marketing strategy. And that’s why they outweigh the hype.
Conclusion: AI’s future will not be branded – it will be built
The strongest companies in the AI era do not have “AI” in their names, slogans, or pitch decks. They simply build better, faster, smarter products and bring attention to the technology that drives them.
After all, the best technology doesn’t scream attention. It’s just streaming.
10. Flip the switch
This is the takeaway:
Stop branding yourself as an “AI Company.” Start solving the actual problem.
Winning brands aren’t the loudest screams of “ai”. They will be quietly and consistently having a real impact.
Lights don’t boast about electricity.
They just shine.
Time for your startup to do the same thing.
The ai AI Gold Rush is over. A real winner? Those who cross the bridge from branding hype to lasting shock.
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