19min chapter

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Benchmark's Sarah Tavel on Are Foundation Models Commoditising | Why Frontier Models Will Be Closed Source | Why the Value is in the Application Layer | The Future of AI is "Selling the Work" Not the Tools

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

CHAPTER

The Shift Towards Selling Work Outcome Facilitated by AI

This chapter explores the shift in mindset from selling software for productivity improvement to selling the actual work outcome facilitated by AI, discussing how AI implementations can be sustaining or disruptive depending on their integration. It delves into automatable tasks, the role of human oversight, pricing advantages for early AI adopters, and the debate between infrastructure and application layers in venture capital. Additionally, it touches on the challenges and opportunities for AI startups in selling work rather than tools, evaluating investment decisions, and the shift in AI market expectations towards selling services.

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