Industry Spotlight: what you need to know about AI and startups

AI is the buzzword of the decade – but what does it actually mean for the startup and investment landscape? In this fireside chat, Michael McDowell sat down with Jerry Staple, founder of AI consultancy IntrinsicAi, to unpack where AI is heading, what investors need to watch for and how founders can build smarter, faster companies by embracing intelligent automation.

Investors shouldn’t dismiss “AI-first” startups – but they should dig deeper

• Some VCs say they won’t back AI-first companies, assuming the tech is dominated by big players like OpenAI or Google.
• Jerry disagrees: “AI is going to be baked into every startup going forward. It’s not a niche – it’s infrastructure.”
• Instead of ruling out AI-led ventures, investors should focus on fundamentals: team, traction, IP ownership and tech stack.
• Yes, many early-stage products are wrappers around APIs – but that doesn’t mean they’re not valuable. Execution matters.

Agentic AI is the next frontier (and it’s messy but powerful)

• Jerry explained how “agentic AI” – autonomous AI systems that complete tasks – is reshaping product development.
• Startups can now use frameworks like LangChain, Crew.ai and OpenAI’s Agent SDK to build teams of agents that replicate human workflows.
• It’s still early and complex, but those who figure it out can build at 10x speed with leaner teams and lower costs.

Why boring problems are the best AI opportunities

• The biggest wins aren’t in shiny consumer apps – they’re in overlooked, painful, operational problems.
• Jerry’s team is building agents for demand forecasting in bakeries, streamlining processes in manufacturing, and automating decision-making in public sector teams.
• “Find the boring, repetitive work. That’s where AI shines.”

Startups can do more with less – and that’s the real advantage

• Forget five-year plans to hire 10 developers. With AI, a lean team can do the work of 50.
• This changes early-stage economics. You can validate faster, scale more efficiently, and keep burn low.
• For investors, it means capital goes further and risk is reduced with earlier traction and leaner operations.
• Founders also need to understand their tech stack and own their code – not just rely on no-code tools.

Regulation is coming – but it’s not here yet

• The EU AI Act is one of the first major frameworks, but it’s still early days.
• Founders should be proactive: understand the data you’re using, respect privacy, and build with compliance in mind.
• For investors, assessing a startup’s regulatory awareness and data handling practices is increasingly important.
• “It’s like the Wild West right now,” Jerry said – but that won’t last.

Your next co-founder or portfolio star might be a domain expert

• Many of the most exciting startups are born from unusual co-founder pairings: a tech builder and a domain insider.
• Jerry’s own venture Chainmail pairs a customs consultant with AI to automate knowledge work in a highly specialised field.
• For investors, this mix of technical skill and deep domain knowledge is a powerful signal of potential.
• “If you’re a founder, go network outside your bubble. The best problems live in unexpected places.”