AI-Native Companies: Key Insights from DisrupTV Episode 403
Artificial intelligence is changing how businesses operate. Instead of chasing existing markets, enterprises should focus on creating new categories. The obsession with transformation and add-on approaches needs to end. AI should be treated as a co-founder, and companies must reduce the time from idea to prototype to nearly zero.
This was the core of a recent DisrupTV episode featuring Christopher Lochhead, a 13-time #1 bestselling co-author and expert in Category Design, alongside Sunil Karkera, Founder and Chief Engineer at Soul Of The Machine. Their discussion offers valuable lessons for building AI-native companies.
Avoid the "Existing Market Trap" in AI
Lochhead highlights a major issue: around $13 trillion in AI startup investments are at risk because too many companies compete in existing markets instead of creating new ones. The data shows that copying established products like ChatGPT or Nvidia leads to fierce competition and limited success.
His advice is clear: “You can't create a new thing and let it be positioned as an old thing.” The winners will be those who step outside current markets and build entirely new categories.
AI as Core, Not an Add-On
Successful companies see AI as the foundation of their business, not a side feature. Lochhead describes AI as “the greatest mega category creating technology in history.” Yet many still treat it like an add-on or assistant.
When vendors call their AI products “companions” or “copilots,” they reveal their mindset: AI is a feature, not the core. But AI should be the core. It’s not an add-on; AI is the thing.
Sunil Karkera applies this by combining digital and human labor at Soul of the Machine. This approach lets a small team do the work that used to require hundreds. Their pricing model is based on outcomes and milestones, not headcount or hours.
- They use AI agents as key team members, driving creativity and engineering.
- The focus shifts from manual effort to augmented creativity.
The "Stop, Change, Start" Mindset with AI
Lochhead encourages thinking of businesses and careers as pre-AI constructs that need rethinking. AI should act as a co-founder, baked into every part of your work and company from day one.
Companies that don’t build with AI at their core risk falling into the existing market trap. Companies like OpenAI and Nvidia succeeded because they created new markets instead of chasing old ones.
“AI is essentially a giant ‘stop, change, start,’” Lochhead says. It’s not about transforming old businesses but creating new ones. Karkera calls AI “the new soul of the new machine” his startup is building.
"Vibe Creating" and "Vibe Coding"
New ways of working with AI are emerging. Lochhead describes “vibe coding” as a conversational process where you tell AI the outcomes you want, and it builds the software for you.
This lowers barriers for technical work. Karkera confirms this democratization: even non-engineers on his team perform impressive engineering tasks by stretching their creative thinking rather than relying solely on formal algorithmic knowledge.
Creative Work Needs AI
Lochhead introduces “vibe creating,” a framework involving three steps: Puke prompt, partner, know. Unlike traditional tools where precision is critical, AI thrives on iterative, conversational input.
He shared how he worked with his AI assistant, Lucy, to write a book by providing a thesis and refining ideas through back-and-forth interaction. This approach fits creative workflows better than rigid precision.
Forward Deployed Engineering
Karkera’s company puts engineers where ideas originate. This eliminates delays between concept and prototype. For example, after a customer sketched an idea on paper, Karkera used AI to create a working prototype in 15-20 minutes, then added the customer’s design system to deliver a full application by day’s end.
This model is helping Soul of the Machine win enterprise clients over much larger consulting firms.
Final Thoughts for Creatives
If you’re a creative professional, these insights suggest a shift in how you approach projects. AI isn’t a tool you add later—it’s a partner from the start. Embrace AI to create new categories, speed up iteration, and rethink pricing and outcomes.
For deeper learning on working with AI in creative roles, consider exploring relevant courses on Complete AI Training. They offer tailored content to help you build AI-native skills that fit your creative career.
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