Why Has It Become Risky To Be An AI-Based Software Startup?

In the last two decades, the software industry provided a healthy breeding ground for incubating new businesses and ideas. From solving the day-to-day problems of end-users to building complementary tools for software developed by large companies, startups thrive in the disruptive market. They compete to differentiate based on the value they deliver to customers. But the changing dynamics of the industry have made it extremely risky to be an independent software vendor or a startup in the cloud and AI market. There was a time when large platform companies delivering enterprise software chose not to compete with ISVs.