AI-Native Companies Will Outperform Everyone Else | Harvard Business School, Rem Koning
In a Nutshell
AI-native companies outperform others by allocating intelligence—deciding what tasks go to tools like Claude, ChatGPT, or humans—reimagining workflows with agentic AI agents that scale via compute rather than headcount, as seen in Gamma's presentation tool and global founder sprints yielding 20% more weekly output in Nigeria. High-performers with judgment amplify AI's value, while strugglers decline (e.g., 10% profit drop in Kenyan study), emphasizing the need for earned insight over raw tool power. AI equalizes routine tasks but drives leapfrogging in emerging markets, proliferating small SaaS and entrepreneurship, though builders must validate user demand to avoid overengineered failures.
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Wrote a paper 3 years ago examining whether ChatGPT delivered over WhatsApp could help small business entrepreneurs in Kenya. Struggling entrepreneurs (lower baseline profits and revenues) saw a 10% decline in profits and revenues from talking to the AI. High-performing entrepreneurs (revenues and profits above median) did better. Even with advanced models like GPT-5.2 or Claude, results would likely be the same.
History of business shows edges from allocating resources: Warren Buffett excels at allocating capital at Berkshire Hathaway; companies like McKinsey at allocating talent. Now, key is allocating intelligence for market edge.
Hi, I'm Rem Koning, professor at Harvard Business School, studying entrepreneurship and AI to help entrepreneurs worldwide, from Silicon Valley moguls to coconut sellers in Indonesia, bring new products to market, compete, grow firms, and unlock entrepreneurial potential with AI.
AI changes firm-building: questions on who builds AI-native firms, scaling, strategy. AI Founder Sprint from INSEAD involved over 500 entrepreneurs globally (quarter each from Africa, Asia, Americas, Europe), all building AI solutions like AI for maternal health in Africa, edtech in India, startups in Kenya, Europe, US.
Tracked AI usage; preview results: teaching founders to be AI-native—using generative AI, ChatGPT, Claude, vibe coding tools, multimodal tools, agents—helps everywhere. In Nigeria, 20% more done weekly, more customers, product launches, revenue. Despite success and faster growth, founders want to raise $250,000 less capital.
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