At the ET Soonicorns Summit 2025, leading unicorn founders and investors came together to discuss one of the most pressing challenges in the startup ecosystem—how to build genuine defensibility in artificial intelligence (AI) businesses. The panel highlighted that while AI-driven startups are growing rapidly, most lack durable competitive moats, raising questions about long-term sustainability.
Experts argued that many startups are overly reliant on generic AI models and cloud-based infrastructure, which can be easily replicated. True defensibility, they said, lies in developing proprietary datasets, building domain-specific models, and creating ecosystems that integrate AI into real customer workflows.
The discussion also touched on the risks of inflated valuations in AI companies without strong differentiation. Panelists stressed that businesses must move beyond “buzzword adoption” and demonstrate measurable value creation. Investors, meanwhile, are shifting focus toward startups that combine deep technical expertise with strong execution capabilities.
Key Takeaways from the Unicorn Panel
Proprietary Data is Critical: Unique datasets remain the strongest AI moat, harder to replicate than models.
Domain-Specific Innovation: Custom models for healthcare, finance, and logistics offer better defensibility.
Integration with Customer Workflows: Embedding AI into business operations ensures long-term stickiness.
Beyond Hype: Sustainable growth requires delivering measurable outcomes, not just AI adoption.
Investor Priorities: Funding is increasingly directed toward startups with proven defensibility and execution.
Who Should Take Action – Specific Advice
AI startups should prioritize building proprietary data assets, develop sector-focused solutions, and create customer lock-ins through integration. Founders must reassess product strategies to ensure they are not easily displaced. Investors should carefully evaluate the long-term viability of AI ventures before committing capital.
India Advocacy Insight
The ET Soonicorns Summit 2025 underlines a critical truth—AI’s future will be shaped not by hype, but by defensible business models. At India Advocacy, we advise Indian startups to focus on proprietary innovation, compliance-ready deployment, and customer-centric integration to build resilience in an increasingly competitive global AI market.
