Winning Over the Physical World with AI
Going After Frontline Industries? Avoid Getting Put to the Back of the Line!
January 16, 2025 by Clint Chao, Moment Ventures
AI for the physical world? Bring it on, I say! Industries like logistics, industrial appliances, agriculture, construction, financial and medical services and more — they’ve certainly heard about AI, but while many of these businesses may have drank the AI Kool-Aid, they might not have the first clue how to go about implementing it into their workflows. Some of these companies are still dealing with clipboards and spreadsheets, so you have to pace yourself if you want to ultimately win.
Left to their own devices to evaluate your slick new AI solution, they’ll likely be comparing you to alternatives based on what they know, and that might be a piece of productivity software from an existing industry provider that costs a basic seat license price, and probably not easy to just rip out. And if you try to mow them down with a pitch that says that your AI solution will eliminate 80% of their workforce, and that’s why your product is worth 10x what they’re used to paying, you might lose them before even getting started!
Speak Their Language
If you’re aiming to break into a physical-world market, you must speak the customer’s language and demonstrate a clear understanding of their challenges. Without this, you’re likely to be met with eager, but strange quizzical looks as they try to figure out what you’re talking about. And by the way, they have to get back to work, so watch out for their short attention span.
Rather than blow them away with buzzword gimmickry, focus on earning enough trust to become part of their ecosystem of productivity solutions. Getting a foot in the door is critical. Once you’re on the inside, you’ll be able to help them learn the ropes, and you can unveil more expansive capabilities to them as you earn their trust and confidence and you’ll be getting paid while enlightening them!
Start Small, Think Big
Some of the companies we’re working with are finding great success by adopting a two-stage engagement process:
- Capture Attention with Immediate Value: Begin with an easy-to-use offering that solves an immediate pain point. Don’t over-emphasize AI for now; instead, focus on the value proposition, ease of use, and the importance of data collection to unlock future opportunities.
- Build Trust for Long-Term Transformation: Once you’re integrated into their operations and delivering measurable results, it becomes much easier to demonstrate your revolutionary capabilities. By now, you’ll be in a much better position to transform their business without overwhelming them upfront.
In Stage 1, you may be dealing with a decision maker on the ground floor of operations, but if you can graduate the conversation to Stage 2, you will likely gain an audience with more strategic thinkers (maybe even the business owner!) who can appreciate the total value of what your solution can deliver for them.
Help Them Think of AI as an Initiative, Not An Experiment
Your goal shouldn’t just be to sell a product — it should be to establish a partnership. Guide your customers into this new era of AI-driven possibilities by earning their trust, solving real problems, and delivering tangible value at every step. Emphasize that before AI, you need data. When you’re seen as a trusted ally instead of just another vendor, you’ll unlock the true potential of AI in the physical world.
So, ditch the buzzwords, prioritize the customer’s perspective, and focus on building a bridge to the future, one step at a time. The physical world is ready for AI — are you ready to meet them where they are?
Clint Chao is a General Partner at Moment Ventures, an early-stage venture capital fund based in Palo Alto, CA. Moment looks to fund startups building the Future of Industries. You can reach/follow him on LinkedIn, Medium and X.
