Impact of AI on Startups: A Case Study of Ryze and Claude

An entrepreneur based in San Francisco asserts that the latest update from Anthropic’s Claude has significantly harmed her startup. What was once a rapidly growing venture, boasting hundreds of clients, has experienced a drastic decrease in its closing rate from 70% to just 20% in a matter of hours, according to Bodnar.

The company, known as Ryze, provides a solution that assists users in creating, tracking, optimising, and managing digital advertising campaigns across platforms like Google Ads and Meta Ads. Ira Bodnar, the founder of Ryze, discussed in detail on X (previously Twitter) how the features introduced by Claude and Manus are in direct competition with her company’s offerings.

Features of Claude that Affect Ryze

Bodnar expressed in her post that she felt devastated, stating that the recent features launched by Claude and Manus allow AI systems to directly connect with Meta Ads accounts, enabling businesses to automatically analyse advertising data. Essentially, the advancements in Claude’s automation capabilities now perform functions originally intended for Ryze’s product.

Concerns About Future Developments

However, Bodnar noted that Claude cannot currently make changes within ad accounts—it is restricted to analysis and lacks access to Google Ads. She mentioned that in a few months, this may no longer be the case, leading her to think that continuing to build in this space might be futile.

Strategies for Survival

Despite these challenges, Bodnar remains hopeful about her startup’s future, as she alerted her team to the impending advancements before they could have a severe impact. She affirmed that the business will persevere, stating that they had been anticipating changes and began adapting a few weeks prior.

Ryze has now shifted its focus towards developing complex AI workflows tailored for advertising agencies operating with smaller teams. Bodnar maintains a positive outlook, suggesting that while AI simplifies product development, human intuition and strategic distribution remain essential competitive advantages. She believes AI may manage the technical aspects of creation, yet human judgement and audience engagement continue to be crucial.

The SaaSapocalypse Debate

This situation reignites discussions around the concept of “SaaSapocalypse,” the notion that software companies might get replaced by increasingly capable artificial intelligence. Bodnar anticipates that nearly 98% of videos on platforms like TikTok and Instagram will soon be generated by AI and marketed through automated means. She argues that in the foreseeable future, success will be less about creativity and more about mastering algorithmic insights.