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Oct 28, 2024
4 min read

Applying Hamilton Helmer's 7 Powers to democratize AI governance

Learn how VerifyWise applies Hamilton Helmer's 7 Powers framework to build competitive advantage in AI governance through network effects and counter-positioning.

Why VerifyWise fits the 7 Powers Framework

VerifyWise is an open-source AI governance platform built on collaboration, community, and transparency.

Its open-source model creates network effects by inviting contributions from developers, lawyers, and AI experts. More contributors means more value for all users.

VerifyWise also uses counter-positioning by offering a democratized, community-driven alternative to proprietary AI governance tools. This appeals to users who want transparency and control.

By applying Helmer's powers, VerifyWise is building toward becoming a go-to resource for AI governance.

Let's see how we apply the 7 Powers Framework to VerifyWise.

Scale economies

VerifyWise can benefit from scale economies by managing its resources efficiently as it grows.

As the number of contributors, users and partners increases, fixed costs (infrastructure, security, compliance) can be spread across a larger base.

The key for VerifyWise is building scalable processes for maintaining code quality and handling contributions, which reduces per-unit costs as its user base expands.

Network effects

Since VerifyWise is an open-source platform, network effects matter. As more contributors, lawyers, and AI governance experts join, the platform's utility increases for all stakeholders. We expect increased coverage of VerifyWise beginning of 2025.

This growth improves the codebase and resources available. It also strengthens VerifyWise's global reputation as a hub for AI governance.

Counter positioning

Counter-positioning involves offering a model that other vendors cannot easily replicate.

VerifyWise's open-source and community-driven approach differs from many proprietary AI governance tools. Traditional firms may hesitate to embrace open-source governance due to business model constraints.

VerifyWise's commitment to transparency and community contribution lets it position itself as a democratized, flexible alternative that's difficult for other players to copy.

Switching costs

Building switching costs can be challenging for open-source projects, but VerifyWise can achieve this by integrating deeply into users' workflows and establishing familiarity and trust.

As users become accustomed to the specific features, dashboards, or customizations available within VerifyWise, transitioning to a different tool becomes costly in terms of learning and operational adjustment.

Offering support, documentation, and community-based troubleshooting helps cement VerifyWise as an indispensable tool for its users.

Branding

Branding matters for establishing VerifyWise as a trusted name in AI governance. Thought leadership content, webinars, and publications like our ebook "AI Bias and EU AI Act" build that reputation.

As VerifyWise becomes synonymous with high standards in AI governance, it can attract more high-quality contributors, users, and partners who value reputation and expertise in their tools. We are working hard to give VerifyWise its own unique brand and user experience.

Cornered resources

Cornered resources refer to exclusive assets that give a company an advantage. VerifyWise will use partnerships with legal experts, AI auditors, and governance specialists as a unique asset.

By building strong partnerships with AI ethicists or governance bodies, VerifyWise can secure resources that competitors may not access easily, creating unique value for users seeking advanced governance practices.

Process power

Process power comes from unique operational processes that are difficult to replicate. VerifyWise will develop specialized processes for handling code review, vulnerability scanning, and security compliance in an open-source context, setting a standard for AI governance.

We'll invest in efficient, transparent processes for vetting contributions and managing data privacy as well. VerifyWise will create a replicable but complex process that becomes its operational backbone, making it hard for new entrants to match.

The road ahead

Through its open source approach, VerifyWise stands apart from closed AI governance tools. We use Helmer's principles, like network effects and counter-positioning, to build something durable.

By focusing on these powers, VerifyWise aims to grow as a platform while making AI governance more accessible and practical for everyone.

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Applying Hamilton Helmer's 7 Powers to democratize AI governance | VerifyWise Blog