Over the past 18 months, we’ve seen an explosion of “AI startups.” But after auditing 47 early-stage AI SaaS products, here’s what stood out: 72% were thin wrappers around GPT or Claude APIs 64% had no proprietary data 81% had no defensible moat Most had <6 months runway at current burn The uncomfortable reality: We’re in an “AI veneer” cycle, not an infrastructure cycle. The majority of products: Call an API Add UI Add billing Market as “AI-powered platform” The margin compression problem is obvious: OpenAI lowers price → your margins die A better model launches → your differentiation dies Big player clones you → distribution wins This isn’t anti-AI. It’s anti-illusion. The real value layer is: Workflow integration Network effects Proprietary data loops Embedded distribution For example, while building EPIC(https://no-edit.lovable.app)(we’re experimenting with workflow-level integrations rather than raw prompt wrappers), we realized the model layer is becoming commoditized faster than most founders expect. The question isn’t: “Can I build with GPT?” It’s: “Do I own anything if GPT improves tomorrow?” That’s the real risk founders aren’t pricing in. We’re watching a gold rush where the shovel sellers (model providers) are compounding, and most miners are building on rented land. Curious how others are thinking about defensibility in AI SaaS right now.

EPIC is a workflow-focused AI tool aimed at solving [Lazy designs and improper website sitemaps]. The goal isn’t to be another prompt wrapper — it’s to integrate directly into the workflow layer so the value isn’t tied purely to whichever model is cheapest this month.