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.

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