Founder Reality

E29: The AI Performance Gap Is About to Become Permanent. Here's Which Side You're On


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Wall Street Journal just proved what every founder already knows: AI isn't leveling the playing field - it's making superstars 10x better while average performers fall further behind. You have 18 months before this gap becomes permanent.

Story 1: AI is widening the performance gap (not closing it):

  • Wall Street Journal research: AI makes superstars even MORE super, not helping average performers catch up
  • Superstars master tools faster, have domain expertise for better prompts, use AI systematically with frameworks
  • Average employees wait for guidance, stick to basic features, get less credit
  • Gap going to be way more brutal for founders than employees

The three types of builders (which one are you?):

Type 1: Building the old way (80-90% of founders)

  • Still using manual processes, hiring for every job function
  • Skeptical about AI beyond basic ChatGPT usage
  • Occasionally ask "give me hiring template" but nothing significant
  • Look at Glassdoor/Indeed/LinkedIn - people still hiring tons of office jobs

Type 2: Using AI as a tool (10-20% of remaining founders - probably you)

  • Using lots of AI tools (Claude, Gemini, ChatGPT, Cursor)
  • BUT not fundamentally changing how they build
  • AI is reference point, not a system - on-demand questions only
  • Still thinking in old paradigm - following Paul Graham essays from 2000s/2010s
  • Better than Type 1 but stuck because changing perception is hard

Type 3: AI native from ground up (the future)

  • Tend to be younger (straight out of college) but also late 20s/30s/40s who made mental shift
  • Every workflow embedded with AI - not just for name, but genuine benefit
  • Every hiring decision: "Can AI do this + contractors?" not "Should we hire employee?"
  • Building products that needed 10 engineers with just 2 engineers using AI
  • Same quality as Type 1/2 but 80% fewer people

The scary reality - gap won't show for 12-24 months:

  • Technology only 2 years old, everyone's revenue still looks same
  • But Type 3 founders building 2-5x faster, learning 10x faster
  • Compounding knowledge at rate Type 1/2 can't replicate
  • In a year it'll show up, in 2 years impossible to catch up
  • While you're figuring out "how to use AI better" they're building their 2nd and 3rd companies

My SimpleDirect reality:

  • Have 2 engineers now (had 6-8 two years ago) - just as productive, maybe more
  • Built 2-3 different products past 2 years (thanks GitHub Copilot, Cursor, Claude Code)
  • Giving SimpleDirect Financing 90-day AI sprint to test new customer profile/distribution
  • Solo work using Claude to draft articles, social posts, brainstorm strategies
  • 2-3 years ago would've needed 10+ people for what we do now
  • Productivity faster, expenses way lower

If you're employed - this should excite you, not drain you:

Opportunity 1: Maintain performance with less time

  • Friends using AI to do jobs in 50-70% of time it used to take
  • Used to work 9-5, now work 12-5 and exceed expectations
  • What to do with extra 30-40% time? Build side projects, learn skills
  • Old excuse "my job too demanding" doesn't hold anymore
  • Build revenue BEFORE you quit - that's critical

Before quitting your job, need:

  • 6-12 months runway saved (I prefer 12-18 months)
  • Stable consulting income from 3-5 diverse clients (80-100% of current income)
  • Clear validation for what you're building
  • Consulting model: Solve B2B problem, sell service not product first
  • Free ebook on this at founderreality.com

Opportunity 2: Become indispensable

  • Be the AI expert everyone turns to when stuck
  • Figure out AI workflows that 10x output, share with colleagues
  • Know people in "forward-thinking" orgs who can't figure out how to use Notion (mind-boggling but happens)
  • Two benefits: (1) Too valuable to let go = job security, (2) Skills/reputation transfer when you leave

Bottom line on Story 1: In 18 months, gap will be permanent. Act now or it'll be too late.

The 4-question AI positioning audit:

  1. Am I using AI just as tool or is AI core to how I think about building?
  2. Can I reclaim 20-30% of my work time minimum using AI? (If not, you're not trying)
  3. (If employed) Am I becoming the AI expert in my organization?
  4. (If founder) Would my business collapse if AI tools disappeared tomorrow? (Yes = good, that's AI-dependent. No/just discomfort = not AI-native enough)

Story 2: Distribution first, product second (validation from Twitter founders):

  • New breed of founders building TikTok audiences, newsletter lists, communities BEFORE products
  • Logic: Copying products trivial with AI, but audience moats aren't
  • New workflow: Build audience first → validate with audience second → build product third for that audience
  • NOT: Build → validate → ship (that's old way)

My biggest regret:

  • Thought distribution didn't matter for blue-collar SimpleDirect customers
  • Made excuse: "They use phones, pen/paper, Excel - distribution won't work"
  • WRONG - companies built successful audiences with Facebook groups posting memes
  • Could've opened TikTok talking about how contractors/roofers/HVAC can use tech to make more money
  • Would've built loyal blue-collar audience instead of cold calls and outbound
  • If done this years ago on Instagram/YouTube, selling would've been way easier

Inbound vs outbound reality:

  • Always prioritize inbound especially for B2B
  • Outbound costs tons, doesn't work well anymore (we all get 3-5 LinkedIn cold messages daily)
  • As AI-minded, budget-conscious founder: Do marketing first
  • I've tried hiring salespeople multiple times - not worth it early on

Your distribution-first action plan:

  • Start on day MINUS 100 (not day one - if figuring out distribution on day 1, you're late)
  • By day 50-100 when you launch, you'll have 5,000-10,000 loyal people waiting
  • Pick your platform: E-commerce = Instagram/TikTok/YouTube Shorts, Tech = Twitter/LinkedIn/Newsletters
  • Post 3x per week for 90 days minimum about problem space (not yourself)
  • Identify 3-5 distribution partners (remember ConvertKit + Pat Flynn affiliate success)
  • Test demand with landing page (use Webflow/Lovable, no code needed - I coded mine from scratch 5 years ago, you can do no-code in 1-2 days now)

Social media is no longer nice-to-have:

  • Used to be "nice to have for awareness"
  • Now it's your: Distribution infrastructure, Business pipeline, Product validation engine
  • Don't feel guilty spending work time on social - it's part of strategy now, not "extra"

Story 3: ChatGPT App Store could be your 2008 moment:

  • Just announced, 800 million weekly active users
  • Working with Booking.com, Expedia, Figma, Coursera, Zillow, Canva, Uber, Lyft coming
  • Launched App SDK Preview - Sam says "new generation of interactive, adaptive, personalized apps"
  • I tried Spotify plugin - not perfect but works, it's raw (that's where opportunity is)

Historical platform moments:

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Founder RealityBy George Pu