AI Hype: The Rush to Add "AI" to Company Names

By Netvora Tech News

In the late 1990s, adding ".com" to a company's name was enough to send its stock price soaring, even if the business had no real customers, revenue, or path to profitability. Today, history is repeating itself. Swap "com" for "AI," and the story sounds eerily familiar.

Companies are racing to sprinkle "AI" into their pitch decks, product descriptions, and domain names, hoping to ride the hype. According to Domain Name Stat, registrations for ".ai" domains surged about 77.1% year-over-year in 2024, driven by startups and incumbents alike rushing to associate themselves with artificial intelligence – whether they have a true AI advantage or not.

The late 1990s made one thing clear: Using breakthrough technology isn't enough. The companies that survived the dot-com crash weren't chasing hype – they were solving real problems and scaling with purpose.

AI is no different. It will reshape industries, but the winners won't be those slapping "AI" on a landing page – they'll be the ones cutting through the hype and focusing on what matters.

Start Small: Find Your Wedge Before You Scale

Before diving headfirst into the AI space, companies should identify a specific problem they can solve or a unique value they can bring to the table. This "wedge" will serve as a foundation for their AI strategy, allowing them to scale purposefully and avoid the hype.

Own Your Data Moat: Build Compounding Defensibility Early

AI is built on data, and companies that own their data moat will be better equipped to scale and defend their position. By building a strong data foundation early on, companies can create compounding defensibility and avoid being disrupted by competitors or new market entrants.