Founders often ask us: what does it really take to build a durable AI company? In enterprise AI, we’re seeing two models emerge again and again: Oil wells (systems of record) & Pipelines (automation layers). 1️⃣ Oil wells become the source of truth for data & associated workflows. We see two entry points: Rip + Replace: When legacy systems are weighed down by tech debt, buyers are motivated to take the risk to replace with new AI-native systems. @hxtweets @amrit_hx rebuilt insurance pricing & underwriting from ingestion to submission; Valon @wangandrewd collapsed 25+ mortgage servicing systems into one; @usevesta @michael_yu redesigned loan origination so tasks could run in parallel. Greenfield: When no system exists, startups capture customers early and grow with them. @Rillet_HQ started as the first ERP for SMB finance teams, automating manual workflows, and has since expanded into replacing incumbents like NetSuite. Oil wells take longer to drill, but once established, they create deep, durable moats. Owning the system of record unlocks workflows no one else can build and builds switching costs. 2️⃣ Pipelines (automation/orchestration layers) -- These sit on top of existing systems and automate the “glue work” humans do between them. We’ve seen two main patterns: Fragmented Systems: When many entrenched systems coexist, pipelines unify workflows without requiring rip-and-replace. @furtheraicom provides agentic workflows for insurance, automating cumbersome processes (submissions, loss runs, compliance) across multiple systems. Human Middleware: When humans are the bridge between systems, pipelines digitize that work. @Concourse_ai builds AI agents for finance teams, connecting into several financial systems so teams can query and analyze without manual effort. @SolaAI_ lets customers record a workflow once and turns it into a live AI agent for tasks like invoice reconciliation. Customers don’t have to choose. Enterprises will often buy both: a new system of record in one area, lightweight automations in another. But for founders, the strategies are distinct but both can be massive. What matters is not trying to do both at once, but knowing which game you’re playing to win. New post by me & @joeschmidtiv 👇