Nithin Kamath Warns Startups AI Is No Longer a Differentiator

Nithin Kamath, CEO and co-founder of Zerodha, warned startup founders that claiming the use of artificial intelligence is no longer a competitive differentiator in investor pitches. In a series of statements, Kamath argued that AI has become "table stakes," meaning it is now a basic expectation for modern businesses rather than a breakthrough feature.

Kamath cautioned that leading investment decks with generic AI claims is a "surefire way" to be ignored by serious venture capitalists. He compared bragging about using AI to boasting about taking a daily bath, suggesting that such claims are akin to basic hygiene. He noted that the democratization of AI-powered presentation tools has allowed founders to produce polished but generic decks that often blend into the crowd.

He urged entrepreneurs to shift their focus toward strong business fundamentals, clear market opportunities, and genuine innovation. According to Kamath, investors are now prioritizing sustainability, the difficulty of replication, and actual traction over the mere adoption of AI, unless the technology fundamentally defines the core of the business.