The commerce landscape has fundamentally shifted from best-of-breed components to consolidated data platforms — evidenced by brands increasingly requesting systems that eliminate conflicting dashboards rather than adding more specialized tools. In this episode of Brilliant Commerce, Bryan explores how venture capital firm M13 evolved from backing iconic consumer brands like Bonobos, Daily Harvest, and FabFitFun to investing exclusively in commerce infrastructure.
Partner Brent Murri shares why M13 initially passed on Chord but later led their funding round after witnessing how iconic brands like Sonos chose Chord's data platform, confirming that trustworthy data has become the non-negotiable foundation for effective AI implementation in an era where Adobe's research shows consumers increasingly use ChatGPT instead of Google for shopping research.
Topics Discussed:
- How consolidation is defeating best-of-breed in commerce architecture as brands discover that adding specialized components creates unmanageable data problems rather than flexibility, leading to Chord's strategic pivot from requiring full replatforming to making their data platform work with existing infrastructure.
- The emergence of the single source of truth as the critical prerequisite for AI success rather than the AI capabilities themselves, as iconic brands like Sonos and Ruggable report being forced to constantly cross-check multiple dashboards with contradictory metrics, undermining all downstream automation efforts.
- Why Adobe's research on consumers using ChatGPT instead of Google demands retailers shift from traditional SEO to generative engine optimization where brands must become the answers themselves rather than competing for blue links, transforming how product content is structured.
- Implementing the commerce bifurcation framework that strategically optimizes differently for utility purchases (increasingly AI-agent driven) versus discovery shopping (remaining human-centered), rather than treating all commerce interactions with the same approach.
- How M13's interview technique for identifying truly AI-fluent talent goes beyond asking if candidates use ChatGPT to probing "what are your favorite AI applications?" and "how are you leveraging AI in your workflows?" to identify those who can accelerate organizational adoption.
- The marketing copilot approach that elevates human marketers by providing AI-generated hypotheses while maintaining human decision-making at critical junctures, creating lethal and effective operators rather than replacing them with automation.
- Strategically pivoting product positioning by focusing on the core strength (data infrastructure) that customers valued most rather than requiring full platform adoption, as exemplified by Chord's evolution from headless commerce platform to customer data platform (CDP).
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