Stanford Professor Urges Entrepreneurs to Use AI as a Business Accelerator
If you’re considering launching a startup, your first step might just be consulting artificial intelligence. That’s the advice from Steve Blank, renowned entrepreneur and adjunct professor at Stanford University, who believes AI tools like ChatGPT and Claude can serve as invaluable business partners.
Blank, who co-founded four startups and authored multiple books on entrepreneurship, emphasizes AI’s role as a “force multiplier” — enhancing everything from market research to business strategy. Though retired from founding companies since selling his last venture, Epiphany, for $329 million in 2005, he continues to mentor aspiring entrepreneurs.
For decades, Blank has taught that the key to launching a successful business is stepping outside the classroom or office and speaking directly with potential customers. Now, he says, AI can streamline that discovery process.
“Think of AI as a consultant in your pocket,” Blank told CNBC Make It. “If you have a business idea, ask a tool like ChatGPT: ‘Has this idea been tried? Why did it fail or succeed? Where is the best market for it?’”
Generative AI tools today can do much more than answer questions. They can assist in drafting business plans, identifying customer segments, and even suggesting product-market fit strategies — services that would have previously cost thousands from a human consultant.
While AI isn’t flawless — with responses occasionally containing errors or “hallucinations” — Blank says these tools still provide a helpful starting point, especially for first-time founders. “It’s like brainstorming with a smart friend,” he explains. “Not every idea will be perfect, but many will push your thinking in the right direction.”
To get started, he suggests asking AI simple but powerful questions such as:
- “What’s the best business model for this idea?”
- “Who should my target customers be?”
- “How can I test whether my idea fits the market?”
However, AI can’t fully replace traditional customer discovery. Blank insists that entrepreneurs still need to interact with real users to test assumptions and gather firsthand feedback. His Lean Startup approach is rooted in learning directly from the market early on.
“The most critical questions are: Who are your customers? And what do they really want?” he says. Ignoring these insights is a common pitfall for new businesses.
Despite its limitations, AI gives founders a competitive edge, especially in managing tasks like financial planning, admin work, or website development. “Founders who don’t leverage AI are competing against those who essentially have a 20-person team at their side,” Blank warns. “You don’t have to use it — just don’t expect to succeed without it.”