How AI is Transforming Labor Markets

a16z Podcast

a16z

Science, Innovation, Business, Entrepreneurship, Culture, Disruption, Software Eating The World, Technology

4.4 • 1.1K Ratings

🗓️ 11 December 2024

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Did you know the U.S. nurse labor market is over $600 billion annually, but the dedicated software market for nurses is almost zero? In this episode General Partners Alex Rampell, David Haber, and Angela Strange discuss how AI is revolutionizing labor by automating tasks traditionally done by humans. They’ll trace the evolution of cloud eras — from the original to financial services-enabled to the current AI-enabled outcomes era — showcasing how AI is creating unprecedented opportunities, allowing startups to outpace incumbents. They also explore how this shift will reshape industries, where we are in the adoption curve and what companies need to succeed, and the gaps where the a16z Enterprise team would love to see more innovation.

Transcript

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0:00.0	Now you have software agents that are effectively doing what for 65 years have been human work.
0:08.0	Is that going to increase software revenue 2x? It could potentially increase it 10x.
0:12.0	It's not even on the same kind of playing field.
0:15.0	All the data is here in the cloud, all the compute is in the cloud, and now you just mix them together.
0:20.0	Many of these incumbents aren't going to evolve.
0:22.7	Every time there's a new technology shift, we have to challenge every investment thesis that we thought was not going to work.
0:28.6	And so many of them now are going to work.
0:31.6	Moats still matter.
0:33.0	And a lot of the modes in software today are the same that they've always been.
0:36.4	It's both defense and
0:38.0	offense for these companies to figure out what the hell to do. There's a lot of talk and investment
0:45.6	in AI, but that opportunity is often framed in software terms, the budgets, the market caps,
0:51.8	and the existing companies of the last era.
0:55.0	But might this era be fundamentally different?
0:58.0	Consider that for centuries the biggest school of science was alchemy to turn lead into cold.
1:03.0	And today, AI enables a far more powerful transmutation, turning software into labor.
1:09.0	Capital no longer just buys engineers or hardware. It buys code that
1:12.8	replaces or augments labor, unlocking completely new markets. And that's exactly what we
1:18.7	discussed in today's episode, together with three A16Z general partners, Alex Rampel, Angela Strange,
1:25.1	and David Haber. Together, we trace through the evolution of previous cloud eras and what those tell us about
1:31.3	what's to come.
1:32.6	Perhaps most importantly, what's really new here, namely that the $300 billion enterprise
	...

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