Serverless Craic from The Serverless Edge

Serverless Craic Ep81 AI - differentiator or commodity?

• Serverless Craic from the Serverless Edge • Season 1 • Episode 81

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🎙 AI: Commodity or Differentiator? | The Value Flywheel in 2026

AI has taken a step change. Over the past few months, adoption has accelerated dramatically — but are organisations applying it with clarity, or just chasing hype?

In this episode of The Serverless Edge, we unpack:

AI as a commodity vs differentiator
Why clarity of purpose matters more than ever
The risks of “vibe coding” critical systems
Security, blast radius, and agent containment
Accelerating your Value Flywheel safely with AI
Why you cannot outsource critical thinking to an LLM

If you're a CTO, architect, or engineering leader trying to navigate AI adoption without introducing systemic risk — this conversation is for you.

⏱ Chapter Markers

00:00 – The AI Step Change: What Happened in Late 2025?
02:00 – AI as Commodity vs Differentiator
03:10 – The Cost of Building What’s Already a Commodity
04:20 – Internal Acceleration vs Product Features
05:30 – Training Data, Sovereignty & Enterprise Risk
06:45 – Where AI Becomes Dangerous in Your Organisation
08:00 – Agentic AI & Blast Radius: Why Containment Matters
09:20 – Competing With the Platform Providers
11:10 – SaaS Killed by AI? The AWS Reinvent Effect
13:00 – “Vibe Coding” Core Business Systems (And Why That’s Madness)
15:00 – Where You Shouldn’t Experiment With AI
16:00 – Faster Feedback Loops & Engineering Throughput
17:30 – Discipline, Metrics & the North Star
18:20 – Using AI to Improve Your Own Thinking
19:00 – Context Is Everything (And Harder Than You Think)
20:10 – Organisational Design for Humans and Agents
21:00 – Turning the Flywheel Before Adding AI
21:50 – Why Sitting on the Sidelines Isn’t an Option

🔎 Key Themes
1. Clarity Before Capability

Most organisations should consume AI, not build foundational models. The differentiator is rarely the LLM itself — it’s how clearly you understand:

Your user needs
Your value chain
Your supply chain dependencies
Your regulatory boundaries
Without that clarity, AI simply accelerates confusion.

2. Blast Radius & Containment

Agentic systems introduce a new risk profile.
If you deploy AI into:
Poorly governed SDLC environments
Weakly defined security domains
Legacy operational processes
You expand blast radius unintentionally.
Think SaaS isolation. Think sandboxing. Think containment by design.

3. Speed Changes Everything

If AI compresses delivery cycles from weeks to hours:
Your product discovery loop must accelerate
Decision-making must tighten
Metrics must be explicit
Engineering must sit inside the feedback loop
AI increases velocity — but velocity without direction is chaos.

4. You Cannot Outsource Critical Thinking

AI can help:
Refine your North Star
Improve impact mapping
Sharpen KPIs
Draft Wardley Maps
Analyse value chains
But it cannot replace:
Context
Judgement
Organisational alignment
Strategic trade-offs

You still need to do the hard yards.

📚 Related Concepts & Resources

The Value Flywheel Effect
Wardley Mapping
North Star Framework
Impact Mapping
SDLC Acceleration
Agentic AI Architecture

Serverless Craic from The Serverless Edge
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