Recently I wrote a post addressing some of the challenges faced by companies wanting to adopt generative AI, particularly those whose legal and compliance obligations forced them to consider building in-house generative AI solutions. I observed that many companies turned to these in-house solutions because they were unable to use technologies that expose data to third parties.
To be clear, this concern is not unfounded, especially in industries where data privacy and regulatory compliance are non-negotiable. Some companies even conducted thorough due diligence on potential suppliers offering generative AI solutions, only to discover that most leaders in the industry failed to meet their requirements. This often left these companies with the impression that they had to develop their own solutions internally.
In light of this, companies are faced with a dilemma: either risk non-compliance with their regulatory and legal obligations by using third-party AI solutions or take on the daunting task of developing in-house systems that might not align with their core business competencies. The irony here is palpable. By building an in-house solution, companies are inadvertently increasing their risk profile, especially in terms of non-compliance, simply because maintaining and evolving an AI system requires resources, expertise, and a level of technological agility that many organizations may lack.
The decision to build in-house often stems from a fundamental misunderstanding of the complexities involved in developing and maintaining AI technologies. It’s not just about coding and deploying an AI model; it’s about ongoing maintenance, continuous learning, ensuring data integrity, and adhering to ever-evolving regulatory standards. For many companies, this means diverting attention and resources (i.e. money & people) away from their primary business operations, which can lead to unintended consequences, including reduced competitiveness in their core markets.
FOMO With AI
Today, I want to pivot the discussion to another critical aspect of the AI industry: the current frenzy of investment in new AI companies. While it’s true that there are many promising new AI companies with innovative products, I have observed a troubling trend. A significant number of companies with impressive Series Seed and Series A fundraising rounds are entering the market with no novel technology and, in many cases, incomplete solutions. These companies are securing millions in funding, not because they have groundbreaking ideas, but because of the pervasive FOMO—Fear of Missing Out—among investors.
Venture capital firms, driven by the fear of not having an AI play in their portfolios, are making hasty investment decisions. In some instances, I’ve seen companies raise $15, $20, even $60 million simply by taking an open-source AI technology and repurposing it for an existing industry. The catch? Their solution often addresses only a fraction—sometimes as little as 10%—of what the industry’s customers actually need. This trend is not only a potential misallocation of capital but also a disservice to the companies that will ultimately rely on these underdeveloped solutions.
The implications of this investment behavior are far-reaching. For one, it inflates the perceived value of AI technologies that may not be ready for prime time, leading to a bubble that could eventually burst, leaving investors and customers in a difficult position. Moreover, the hype surrounding these newly funded companies often overshadows more established players who have been steadily innovating without fanfare. These startups, flush with cash, often engage in aggressive marketing campaigns, making bold claims about the capabilities of their products—products that, in reality, may still be in their infancy.
Our Role In What’s Coming
RocketDocs celebrated its 30-year anniversary, and while we may not be the hottest new name in the AI startup scene, we have something far more valuable: decades of experience and a deep understanding of the industries we serve. We have not been chasing down venture capitalists for investments, nor have we felt the need to ride the wave of AI hype. Instead, we’ve focused on building robust, reliable, and innovative solutions that genuinely meet the needs of our customers.
Our approach is guided by a core principle we call Responsible Release. This philosophy, which someone much smarter than me coined, is rooted in the belief that we should not release a new product until it is fully ready for customers to use. This might sound like common sense, but in an industry where speed to market is often prioritized over product readiness, it’s a principle that sets us apart. Our business is focused on customers who need technology to assist them in answering RFPs, RFIs, DDQs, InfoSec questionnaires, and more—with accuracy and reliability.
These customers, who operate in regulated and highly competitive industries, require confidentiality and precision. They need solutions that match questions with correct, approved answers and a technology provider that doesn’t send their data into the wild, potentially generating responses that look good but are fundamentally inaccurate.
At RocketDocs, we know the strategic response and RFP response industry inside and out. Our team members bring decades of experience, having sat in the same seats as the customers they now serve. This deep industry knowledge is what informs every product we develop and every decision we make. When we introduced our generative AI solution, we did so with our customers’ specific needs in mind.
We launched a private AI solution that takes a hybrid approach, pairing our existing AI matching technology with a private generative AI model. This hybrid approach ensures that the solution not only meets the highest standards of accuracy and confidentiality but also integrates seamlessly into our customers’ existing workflows.
A key feature of our solution is its approval workflow. We understand that subject matter experts, or SMEs, play a crucial role in maintaining the accuracy and integrity of content, which is why our solution makes it easier for SMEs to approve newly generated content before it is added to their content libraries. This ensures that our customers can trust the outputs generated by our AI, knowing that every response has been vetted and approved by the right experts.
Substance Over Style: The RocketDocs Way
Are we a shiny new startup with a flashy marketing campaign and a pile of venture capital? No. We are an established company with a focus on substance over style. We do a lot with the resources we have, and we take pride in building great products that truly serve our customers’ needs. We may not be in the business of making flashy headlines, but we are in the business of delivering reliable, effective, and responsible technology solutions.
If you’re watching the AI space, you won’t see venture capitalists (VCs) shifting their focus from startups to 30-year-old companies. VCs have their way of doing business, which often prioritizes quick wins and high-growth potential over long-term stability and responsibility. But at RocketDocs, we have our way of doing business too—one that prioritizes the needs of our customers and the integrity of our products. And that is what we will continue to do: provide the best strategic response technology in the industry, with a focus on delivering real value, not just hype.
The burgeoning AI “industry” is at a crossroads. On one hand, the excitement and potential of generative AI are undeniable. On the other hand, the rush to the market and the influx of investment are creating a landscape where FOMO often outweighs thoughtful, responsible innovation. At RocketDocs, we believe that the true value of AI lies not in being the first to market but in being the best at serving our customers’ needs. As the industry continues to evolve, we will remain committed to this principle, ensuring that our solutions are not only innovative but also reliable, accurate, and, above all, responsible.
