Sequoia Says AI Will Kill Software Tools By Becoming The Work

Sequoia partner Julien Bek argues that the future of AI lies in “autopilots” – systems that deliver completed work directly to clients, rather than “copilots” which are tools used by professionals. He posits that the market for AI-executed work is far larger than that for AI-powered software, encompassing the entire human labor budget within specific industries. This shift is driven by AI models reaching a threshold of intelligence capable of handling complex professional tasks, particularly in areas like legal services (Harvey), insurance brokerage, and accounting.

Bek’s framework suggests that the most promising entry point for these autopilots is by replacing existing outsourced tasks, as buyers are already accustomed to purchasing outcomes. As AI systems accumulate data, they can automate increasingly complex, judgment-based work, eventually converging the capabilities of current copilots and autopilots. This presents a challenge for incumbent software companies, as selling the work directly means potentially displacing their existing customers.

Investors are increasingly focusing on vertical AI companies targeting these service markets, as evidenced by Harvey’s recent funding round. Sequoia highlights opportunities in intelligence-heavy, outsourced verticals facing talent shortages, suggesting a significant shift in where venture capital will flow and how AI businesses will be built in the coming years.

(Source：Forbes)