Software is Eating Labor

a16z October 3, 2025
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Software has fundamentally changed the way we record, store, and share information. Its next act is to fundamentally change the nature of our economy, capturing trillions of dollars of value in the process. In this talk from the 2025 a16z LP Summit, a16z General Partner Alex Rampell discusses the history of filing cabinets and databases, how SaaS pricing moved from seats to outcomes, and how AI agents will accelerate the trend of the last 70 years of software progress. Timecodes: 0:00 Introduction 0:27 Historical Context: Automation and Labor 3:25 The Filing Cabinet Era: Digitizing Records 4:12 Case Studies: Software Transforming Industries 8:39 The SaaS Business Model and Its Limits 11:41 Labor Market Scale vs. Software Market 12:19 The Shift: Software Doing the Job 15:44 Case Study: Job Opening 18:11 Real-World Examples: AI in Action 21:01 The Human Element: Demoralizing Jobs & Language 22:52 Market Expansion: New Opportunities with AI 26:02 Conclusion: The Future of Software and Labor Resources: Follow Alex on X: https://x.com/arampell Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: https://x.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Follow our host: https://x.com/eriktorenberg Please note that the content here is for informational purposes only and should not be taken as legal, business, tax, or investment advice, nor used to evaluate any is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see a16z.com/disclosures.

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