Ghazal Alagh, co-founder of Mamaearth and Chief Mama at Honasa Consumer Ltd., has cautioned entrepreneurs and business leaders that the real threat in 2025 isn’t artificial intelligence (AI) itself, but refusing to learn and adopt it. She highlighted businesses that ignore AI risk falling behind those that use it.
The Real Threat Is Denial, Not Technology
In a recent LinkedIn post, Alagh emphasised that companies often fail because they underestimate technological change. “The biggest threat to your business isn’t artificial intelligence. It’s refusing to learn it while your competitors master it,” she wrote.
Alagh highlighted examples from global businesses that fell behind due to resistance to innovation: a major phone manufacturer dismissed touchscreens as a fad, a dominant bookstore chain ignored online retail while a garage startup built the future of e-commerce, and traditional taxi companies were overtaken by tech-driven platforms despite advanced dispatch systems.
“It’s never the technology that kills companies. It’s the denial that technology changes everything,” she added.
AI as a Tool, Not a Replacement
At Honasa Consumer Ltd., Alagh explained, AI is already being used to enhance operations. The company employs AI to:
- Generate personalised product recommendations at scale
- Create thousands of advertising variations instantly
- Predict inventory needs with higher accuracy
- Build customer service that actually solves problems
She clarified that AI does not replace human creativity but amplifies it. “AI isn’t replacing human creativity. It’s amplifying it for those smart enough to use it. It’s a whole new skill set,” Alagh said.
The Competitive Edge in 2025
Alagh warned that businesses hesitating to adopt AI-first strategies risk falling behind. “Your competitor isn’t just learning better ChatGPT or Gemini prompts. They’re rebuilding their entire operation around AI-first thinking while you’re still hiring more people to do what AI does better,” she noted.
She concluded with a clear message for entrepreneurs: “The brands winning in 2025 will be the ones with the best AI-human collaboration. AI won’t replace you. But the people using AI to move 10x faster definitely will.”
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