How AI Will Reshape DTC Brands (And Why Most Founders Aren’t Ready)

Every day I get tons of DMs from AI people warning me that if I do not jump on the AI train now, I am going to lose!!

Most of these messages are boring, robotic and do not know how to send a good message.

So if you are a CEO or founder, and you are not sure where to start with this AI thing, this post is for you.

What the heck is AI and what does it have to do with your business?

In the most simple way possible, AI is a software that can make decisions, write stuff and analyze patterns really fast!

No robots taking your job (Unless your job is sending boring linkedin DM’s. Then yes, AI is coming for you)

Here is what AI can already do today for a DTC brand:

•⁠ ⁠Figure out what to say to customers and when

•⁠ ⁠Identify who is most likely to buy next

•⁠ ⁠Write emails, ads, product descriptions

•⁠ ⁠Suggest product bundles that might convert

•⁠ ⁠Spot trends and problems before YOU even notice them

•⁠ ⁠Predict inventory needs

•⁠ ⁠Personalize your website for every visitor

AI is basically a super-fast analyst with unlimited energy and no need for lunch breaks.

Now the question is not if it will reshape DTC!!

It is whether you are ready for it.

Why most founders in the DTC space are not ready for this shift

You are not ready because you are lazy… you are not ready because you do not have enough data or control over your supply chain!!! Let me break it down:

1.⁠ ⁠You do not have enough data

AI will not be able to help you if you do not give it something to work with. Most DTC brands have not collected enough emails, SMS, reviews, surveys, customer behavior and do not know simple things like a customer’s lifetime value or how much they spend when they buy.

They are too busy hoping ads will work and refreshing their Shopify dashboard like it is the last slot machine!!

2.⁠ ⁠Your supply chain cannot handle a sudden spike

Let’s imagine AI helps you scale like everyone says it will. Are you ready for that?

No!! Most founders are not ready. If AI boosts your sales by 40% overnight and you only have inventory for 10%, congrats….

You have just made a large group of people very angry.

If your supply chain is not ready, AI will expose every weakness you have been avoiding.

But heyI am an optimistic guy…

I believe you can fix this!!

Where your company has to be to win with AI

You do not need to turn your brand into a tech company!! But here are some parameters to work with:

•⁠ ⁠Start collecting data that belongs to you - emails, SMS, surveys, reviews (most important)... anything that will tell you who your customer is and what they like.

•⁠ ⁠Get your tools to talk to each other - Email, website, fulfillment system… They need to connect so AI can actually see the big picture.

•⁠ ⁠Always keep learning- AI is moving fast… you will not get it perfect but starting small now will put you ahead of most founders who are still ignoring it.

Final thought on AI from a 9-figure founder

AI is not here to replace the great tools you already have.

It is here to make you better at what you do.

That means if what you are doing right now sucks…

AI will just help you suck faster!!

Fix the fundamentals first.

Then add AI on top.

THAT is how DTC brands will win the next decade.

Curtis Matsko - CEO & Founder of Portland Leather Goods