Distribution eats AI for breakfast (and lunch)

More than two years ago, the launch of ChatGpt sparked a change in how people think about building and shipping software. Thanks to ChatGpt and other large language models (LLMS), spin-up AI wrappers is easier than ever. This is an app built on top of LLMS with some prompts and some basic UI.

We also see the rise of AI-first coding environments such as Cursor, Bolt, and Lovable. These have contributed to the growth trends of “vibe coding.”

As barriers to creation continue to decline, the challenge is no longer whether we can build something. It’s up to someone to notice.

Even if AI gets much better, distribution beats AI

AI streamlines development. Code is written faster, bugs are discovered earlier, and full application can be generated from a few lines of instructions. However, its efficiency is costly. The market is flooded with software. Once all developers are able to ship, the real bottleneck comes before the right people.

This has already been played. Tools like the Github Copilot and the Low-Code platform allow more people to fire apps that are available. However, the attention economy does not expand in the same way. Winners are those who understand how to attract attention: sharp messaging, SEO, virus content, right-timed launches, powerful networks.

As AI improves, it controls the activities of the creation and hands to those who own distribution. And this gives a twist. The acceleration of AI makes it difficult to actually master distribution. More noise. More clones. More bots than press content. The megaphone hasn’t grown.

The app store is overflowing. X is overwhelmed by AI-generated demos. Not only are founders competing with their products, they are also fighting for space in busy feed and inboxes. Ascending is someone who can get through the noise, get in front of the right person and stay there.

The rest of this article explores why it is important and what is necessary to make the delivery in your interest.

The parables of the two founders

Two friends who graduated from the same computer science program. You spend six months building the perfect AI tool that will generate legal contracts. The other launches a basic chatbot for small businesses to track bills. It’s clunky, but she posts daily, runs tiktok ads, joins the community, and keeps cold emails in lent.

Who do you think won? I’m paying attention.

“That first takeaway – “product distribution” – a person like a wake-up call. That doesn’t mean that the product is not important. Adequate products with killer distributions beat the perfect product that does nothing every time. ”

The fantasy of product advantage

The Solo founder launches an AI app that generates meal plans based on pantry items. It becomes a virus for the whole day and then dies. There is no follow-up. No retention.

On the other hand, a weaker version of the same idea with better marketing will quietly grow to 50,000 users. That’s the new reality.

“The easier it is to build, the more noticeable it becomes.”

Thousands of AI tools are released every month. Most of them disappear. Not because they’re bad, but because no one sees them.

The truth behind Sam Altman’s billion users

The founders have spent years training highly sophisticated AI models for medical diagnosis. This technique is impressive. It is accessible, fast and clinically validated. This is the type of product in which the demo video is made. But it’s in the corner of the internet, waiting for the user to appear.

Meanwhile, another team builds something simpler. It’s not so refined and doesn’t have some advanced features. However, they have signed distribution agreements with local healthcare networks and have introduced tools directly to clinics in five states. Doctors use it every day. The patient sees the results. The words expand.

The second team will get real-world usage, feedback loops and revenue, but technically superior products will not be noticed.

Who will win?

In a recent interview, Sam Altman said he hopes he has a site with more than the most advanced AI models.

Sam Altman’s billion user points doubles that. Scale switches technology when it comes to raw economic weights. Billion users bring revenue, data and stickiness, and the flashy AI model cannot touch on it on its own.

Salesforce: Distribution Jaguar Note

Highlights:

Salesforce, under “Important Network Effects,” is also spot-on. Their hori is a sales person who locked in their CRM, as well as their ecosystem, integration, and all enterprises.

One startup claimed that Salesforce could be replaced with a smoother UI and better integration. On paper, it did.

However, when it came to actually switch, the companies remained. why? The departure cost was too high.

Salesforce is everywhere. It is deeply integrated into the way the business operates. Replacing it is not about better software. It is to overcome years of embedded distribution.

“It’s not about products, it’s about distribution.”

Changes in the founder’s way of thinking

Two co-founders will build B2B SAAS tools. Spend days improving functionality, modifying edge cases and ensuring that the product runs like a dream. The other? They reach out to prospects, create demo videos, reply to comments about X, host webinars, and feed back users with DM’ing.

Early traction is not from the cordbase. It comes from a conversation.

One founder completes the product. The other is to make people hear about it. Who do you think landed the first 500 users?

In the 2010s, builders won. Now the seller does.

The era of “build it and they’ll come” is dead. Tech’s table stakes. Distribution is a game.

Founders who are breaking through now:

Know their audience and find distributions burned into products from the start

AI is destroying funnels rather than replacing distribution

Health apps have noticed that most of their signups don’t come from search ads, but from ChatGpt.

why? They had organized documents for LLMS to read. Their content was optimized for recommendations not only within Google but also within AI tools.

The distribution is not gone. It’s just changing.

SEO is moving to LLM Visibility funnels are doing fragmentation that users are discovering via X, Reddit, Tiktok and AI responses

Stripe is already adapted to formatting documents, making it easy for AI to understand.

These quotes are fires, and in particular, “The fit of the product market is essentially a flashy way for startups to gain distribution advantages.” It’s a technical romantic gut punch of “just make something great.” It says it’s not about the product clicking on the market.

Why is distribution more important than ever?

Take home

The flooding of AI tools has made distribution the most difficult problem. AI created it by lowering the bar, but raised the bar you can see. Founders now need to understand channels, audience behavior and retention. Buildings alone are not enough. Simply cutting through noise makes the edges.

Let’s say you built an AI productivity app over the weekend. You launch it. The first day was decent. However, by the second day, another 15 had been released. By the end of the year, you are one of 100,000.

They all want attention. They all require users. They all need distribution.

“Getting the next model doesn’t solve that.” oof. If you can’t reach it to the right person, you can’t save you.

It’s wild to think that the AI’s own power is creating this confusion. You can sometimes see it by lowering the bar and creating it.

How do you solve the distribution problem?

You are right to ask. The problem is more than just reality. It’s getting worse.

AI continues to lower building barriers. Tools and content are flooded with the market every day, and what used to be released is now Blip. What stands out is not a problem of functionality. It’s a matter of distribution. To solve that, you need more than you want to go viral.

Here are some moves that are already functioning for those who are already breaking through.

1. Nail Niche

By going widely, you will be buried. Focus wins. The smaller and clearer the viewer, the more accurate it will be. If you build it for “everyone,” it won’t reach anyone. But if you build for Shopify merchants with low cart conversions, for example, or remote founders struggling to onboard their teams, there are lanes. Know where they hang out – whether it’s a mismatch, x, or ambiguous subreddits – and go deep.

2. Get on an existing network

Fast-growing startups often don’t build their own traffic. Connect to a platform you already distribute: Think app market, browser extensions, or slack integration. Don’t fight for caution from scratch. Find your Shopify, Zapier, and your discord. Get on the train.

3. Play the algorithm

X, Google, Tiktok, The App Store – they all run on the ranking system. To split them means to learn what floats on top. This means headline optimization, repackaging content for reach, or pinning test versions of landing pages via AI. It’s not about hacking, it’s about respecting how these systems prioritize what they see.

4. We encourage word of mouth

Dropbox handed out free storage for every referral. It wasn’t luck – it was designed. If a product solves a real problem, we build a mechanism to reward people to share it. Make it simple, make it obvious and make it profitable for everyone involved. You can’t rely on virals, but you can set the stage.

5. Hustle doesn’t fall out of style

You still have the power to reach with your hands. Cold DMS, personal intros, small webinars, one-on-one onboarding. It doesn’t scale, but it sticks. Relationships can spark momentum, especially early on. And if your competitors rely on paid ads and loads of content, your personal pitch may be what cuts.

The noise will only get bigger. The winners aren’t just the best builders. They will become people who know how to be seen.

Final Thoughts

The founder once said, “I made something great, but no one came.” When asked how many people he had told about it, he paused: “Maybe 12.”

The distribution was optional. Now, the difference between gaining traction and being buried.

Distribution eats AI for breakfast – and lunch.

This film is inspired by a video by Nate B Jones. Watch the full video below.