OpenAI CFO Sarah Friar shared strategic insights on how companies can build sustainable competitive advantages in the rapidly evolving AI landscape during an appearance on CNBC’s Squawk Box on Wednesday. As AI technology advances at breakneck speed, many organizations struggle to plan beyond a few months, making it increasingly difficult to establish lasting differentiation in the market.
Friar outlined three critical strategies for companies seeking to stand out in the AI era. The first principle is deceptively simple: solve real problems. “It sounds really trite, but sometimes I think people try to solve problems that don’t really exist in the world,” Friar explained. She emphasized that companies should focus on automating complicated, necessary tasks that support real-world operations rather than chasing theoretical applications.
The second recommendation centers on business process automation, particularly in complex areas like finance. Friar highlighted that AI agents can effectively automate intricate business processes, creating tangible value for organizations willing to identify and address genuine operational challenges.
The third and perhaps most crucial strategy involves securing unique data sets. According to Friar, “90 plus percent of the world’s data sits behind closed doors. It sits in university settings, and company settings, and so on. And so, can you access that in an appropriate way? That’s what I think builds a competitive moat.” This insight underscores the critical importance of proprietary data in establishing competitive advantages in AI.
The competition for unique data has become so intense that leading AI companies are pushing legal and ethical boundaries. Meta reportedly considered acquiring publisher Simon & Schuster to access its content library, while Anthropic collected and scanned millions of pirated books while training its Claude model—a practice that a district judge ruled in June did not constitute fair use, raising significant copyright concerns.
Friar’s perspective carries considerable weight given her impressive background. She joined OpenAI last year alongside Kevin Weil, now the company’s chief product officer. Her career includes serving as CEO of Nextdoor and CFO of Square, with additional experience at Goldman Sachs, McKinsey, and Salesforce. Her strategic guidance offers valuable direction for companies navigating the challenging landscape of AI competition.
Key Quotes
It sounds really trite, but sometimes I think people try to solve problems that don’t really exist in the world.
OpenAI CFO Sarah Friar emphasized the importance of focusing on genuine business challenges rather than theoretical applications. This statement highlights a common pitfall in the AI industry where companies implement technology without clear use cases.
90 plus percent of the world’s data sits behind closed doors. It sits in university settings, and company settings, and so on. And so, can you access that in an appropriate way? That’s what I think builds a competitive moat.
Friar revealed the critical importance of proprietary data access in building sustainable AI competitive advantages. This insight explains why major AI companies are aggressively pursuing data partnerships and why data ownership has become a central strategic concern.
Our Take
Friar’s strategic framework reveals a crucial inflection point in the AI industry. While the first wave of AI competition focused on model capabilities and computational power, the next phase will be won through data access and practical application. Her emphasis on solving real problems suggests that many current AI implementations may be superficial, creating an opportunity for companies that can identify genuine automation needs. The legal troubles surrounding data acquisition at Meta and Anthropic underscore a looming crisis: as publicly available data becomes exhausted, companies will need to develop legitimate partnerships and licensing agreements. This shift could fundamentally reshape the AI landscape, potentially favoring established enterprises with existing data relationships over pure-play AI startups. Companies that can secure proprietary data through ethical means while focusing on authentic business problems will likely emerge as the sustainable winners in this space.
Why This Matters
This guidance from OpenAI’s CFO is particularly significant as companies across industries grapple with how to leverage AI without being disrupted by it. The emphasis on proprietary data as a competitive moat highlights a fundamental shift in business strategy—data access and ownership are becoming as valuable as traditional assets like intellectual property or manufacturing capabilities. The legal challenges facing companies like Meta and Anthropic demonstrate that the race for training data is creating serious regulatory and ethical concerns that will likely shape AI development for years to come.
Friar’s advice also reveals the maturation of the AI industry, moving from pure technological innovation to practical business applications. Her focus on solving real problems and automating complex processes suggests that the next wave of AI success stories will come from companies that can identify genuine use cases rather than those simply implementing AI for its own sake. For businesses, investors, and policymakers, these insights provide a roadmap for understanding where sustainable value creation in AI will emerge, while also highlighting the urgent need for clear frameworks around data usage and copyright in AI training.
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Source: https://www.businessinsider.com/how-to-stay-competitive-ai-era-openai-cfo-sarah-friar-2025-8