We now have a name for it: Agentic
This is a blog post written by Claude that summarizes a keynote presentation that I made back on April 20th, 2024. At the time there were still so many unanswered questions. I’m not sure we have enough answers yet, but things are starting to come into focus. It’s crazy how far we’ve come. I’ll attach the Podcast that Google’s Notebook LM generated from this as well. Have a look and listen.
The Future of AI in Startups: Beyond Apps and SaaS
In a recent presentation to professors and entrepreneurs, a seed-stage investor shared compelling insights about how AI is reshaping the landscape of entrepreneurship and technology. Here are the key takeaways about where we’re headed and what it means for startups, education, and society at large.
The Current State: Big Tech’s Data Monopoly
We currently live in a world dominated by big tech companies built on an unwritten rule: if you collect and store data, you own it. These companies have developed increasingly sophisticated ways to gather our data, which they then monetize through advertising and services.
A recent example illustrates the value of this data: Reddit’s IPO filing revealed they generate $800 million in annual revenue, with $60 million coming from Alphabet specifically for AI training data. This presents a crucial question: Are we reaching a breaking point in our awareness of personal data’s value?
The Vision: Three Key Shifts
1. Personal Data Ownership
The future will enable individuals to own and control their data through personal AI agents that authenticate and allocate data access to services. Instead of giving complete access to service providers, zero-knowledge proofs will allow verification without exposing unnecessary personal information.
2. The End of SaaS
Traditional Software-as-a-Service models will evolve dramatically. Currently, most SaaS products are essentially different windows into similar data operations. The future will break these solutions into individual components that can be dynamically assembled based on specific needs.
3. An “Appless” Future
We’re moving toward a future without traditional apps. Instead of downloading separate applications and creating multiple accounts, AI agents will dynamically assemble solutions from component services. This shift could potentially return 30% revenue to industries currently paying app store fees.
Critical Challenges in Education and Human Development
Redefining Knowledge
As AI augments our ability to recall and access information, we must reconsider what it means to “know” something. When we can instantly access not just our own memories but potentially the collective experiences of others, how do we define knowledge?
Preserving Critical Thinking
Two uniquely human capabilities must be protected and developed:
- The ability to measure information quality
- The skill to identify what should be questioned These capabilities become increasingly crucial as AI-generated content proliferates.
The Future of Startups
Smaller, More Focused Teams
- Companies will operate with smaller teams
- Less physical space will be needed
- Certain business functions may be eliminated entirely
- Stronger culture can be maintained with smaller groups
Faster Iteration and Specialization
- Development cycles will accelerate beyond current capabilities
- Teams can focus on specific components of larger solutions
- Compensation will be based on value added to the network
- New funding models will emerge, including “Shared Earnings” approaches
Looking Forward
Sam Altman recently predicted we’ll soon see the first billion-dollar companies with fewer than 10 employees. Looking further ahead, there’s speculation about when we’ll see the first single-employee billion-dollar company.
This future requires significant infrastructure changes and a shift in how we think about business and technology. While AI brings tremendous opportunities, we must remember that humans are at their best when working together. The challenge lies in maintaining human connection while leveraging AI’s capabilities to augment rather than replace human creativity and critical thinking.
As we navigate this transformation, success will come to those who can balance technological advancement with human elements, focusing on quality measurement while preserving the irreplaceable aspects of human collaboration and creativity.