AI, David, Goliath, and you

Jack Miladin’s recent viral post on X got me thinking about whether, when we create our hero myths, we tend to ignore the nuances and make overly casual use of metaphor. It made me think a bit harder about the dynamics between big tech and little tech, and how we chose our champions.

Not big, not clever

If the US is, in fact, Goliath, I’m not sure it follows that Canada is David, but the added context for Maladin’s comment - helpfully provided by so many X readers - reminded me: the legend of David and Goliath is much more than an underdog story. It's about strategy, skill, and leveraging your strengths against a seemingly insurmountable opponent. In the original story, David wasn't just lucky: he was the one you would have bet on. He had the skills of a practiced slinger, the agility to outmanoeuvre a heavily-armoured opponent, and unwavering confidence.

While we’re getting our facts straight: Goliath was probably nearer 6ft tall than 8ft, and David was (probably) based on a Judean warrior called Elhanan. Scholars suggest Greek myth is the likely origin of much of the story’s colourful detail, artfully repurposed to represent a cosmic struggle between God and the enemies of his people. But you can do your own research. I’ve digressed.

My question is: are smaller companies the Davids we should be betting on, when it comes to AI-powered tech? And how do we spot them, before they become Goliaths themselves?

What does David have that the other guy doesn’t?

Remember when Apple, which started in a garage, took on IBM in personal computing? Probably not, if you’re under 50. You might not remember Google rising to dominance over AltaVista and Yahoo either. What about Vinted? The Lithuanian start-up has taken a chunk of eBay’s seemingly unassailable market share, bringing a community feel that eBay had long-since lost.

There are some common features to look out for, which our modern-day tech Davids-turned-Goliaths shared with the original:

1. Niche expertise: Like David's expertise with a sling, small tech companies often specialise in specific areas, becoming experts where larger companies might only scratch the surface. Think twice before you invest in a sledgehammer to crack a nut.

2. Differentiation: David eschewed traditional armour that would have weighed him down: small firms often offer unique and simple solutions that set them apart from the one-size-fits-all approaches of larger companies. Beware the supplier who asks you to comply with their model: you want a model to fit your workflow, and the customer really ought to be king.

3. Agility and innovation: David's ability to move quickly and adapt was everything. Smaller tech companies can pivot and often innovate faster than their larger counterparts. No one in a small company is waiting for HR guidance on their job title before they start in a new role, or taking an idea to five different committees before they can start to work with a programmer. Believe me.

4. Strategic partnerships: David had the support of his people (which is also the key success factor for guerilla warfare, but I’m trying to avoid the more sinister analogies for AI). Small companies can forge real and personal relationships with customers. You can co-create solutions. We do.  

5. Public perception and... vibes: No one likes a bully. David's victory became legendary. Small companies can tell compelling stories that build public support and interest; being a customer is the business equivalent of supporting your local independent shops. It feels good. It’s who you want to be associated with.

Sounds easy. No wonder David walked it.

This is where the analogy breaks down: it's not all about the competition. For businesses, you don’t have to make someone a loser for you to be a winner. Small AI companies like ours play nicely with the big boys: your confidence grows if you also have a Goliath on the team as back up. Strategic partnerships can provide access to resources and markets that would otherwise be out of reach – while established market giants who can adapt and work well with new players can uncover fresh ideas and use cases. Or fail to evolve and be eBay to the next Vinted.

In practice – in this business - the goal is maintaining your independence and avoiding unnecessary barriers like vendor lock-in. That means startups developing solutions that can integrate with various platforms and avoiding over-reliance on any single large tech partner. In our case, it’s working in Microsoft Azure and being excited to build in AWS’s Bedrock. Every day is a discovery day; every issue has multiple solutions.

The future of generative AI probably isn't a winner-takes-all scenario. We should be moving towards an ecosystem where Davids and Goliaths coexist and complement each other – and the ones who can’t play nicely will be on their own in the corner of the playground, or having what schools today call ‘reflection time’ indoors. Large companies provide infrastructure and reach; smaller ones drive innovation and specialisation. There will be consolidation and a few abandoned projects along the way as we ride the Gartner hype cycle, but the lively generative AI startup market will become a market like any other, which means customers should shop around as they would for any other supplier.

The original giant-killer narrative served a specific purpose: to establish David's credentials as a future king, telling us that true strength comes from character, not physical size or strength. I’m biased, of course, but in the world of AI, I think the Davids are the ones to watch and cheer for.  

Next time you hear about an AI startup taking on a tech giant, remember it's not just about being the underdog. It's about skills, strategy, and agility. Find out what they’re fighting for and what secret weapons they’re carrying.

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Next week: a blog featuring a more diverse set of lead characters.

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