The full impact of automation on cost efficiency in startups is still a couple of years away. While AI agents are enhancing efficiency to some extent, the significant shift in cost structure will likely occur when AI coding agents work at scale. Currently, early-stage startups with small teams may not see much automation potential due to the limited scope for elimination of headcount. The existing AI models are not advanced enough to automate valuable tasks efficiently, especially in startups with less than 10 employees.
This week on No Priors, we have a host-only episode. Sarah and Elad catch up to discuss how tech history may be repeating itself. Much like in the early days of the internet, every company is clamoring to incorporate AI into their products or operations while some legacy players are skeptical that investment in AI will pay off. They also get into new opportunities and capabilities that AI is opening up, whether or not incubators are actually effective, and what companies are poised to stand the test of time in the changing tech landscape.
Sign up for new podcasts every week. Email feedback to show@no-priors.com
Follow us on Twitter: @NoPriorsPod | @Saranormous | @EladGil
Show Notes:
(0:00) Introduction
(0:16) Old school operators AI misunderstandings
(5:10) Tech history is repeating itself with slow AI adoption
(6:09) New AI Markets
(8:48) AI-backed buyouts
(13:03) AI incubation
(17:18) Exciting incubating applications
(18:26) AI and the public markets
(22:20) Staffing AI companies
(25:14) Competition and shrinking head count