The key challenges facing AI adoption and development are addressing "last mile" issues, which refer to specific problems or nuances in a particular industry or use case that need to be overcome. These issues can include things like augmenting models with proprietary knowledge, reliably following instructions, detecting hallucinations, distinguishing voices, recognizing rare words, and evaluating AI technology using relevant metrics. To differentiate themselves, startups can leverage these challenges as opportunities to create unique solutions and capture market share by understanding the specific needs of their customers and developing benchmarks that accurately measure success. By addressing these last mile issues, companies can build more effective and user-friendly AI products that meet customer expectations, ultimately driving widespread adoption.