I was looking at people as a % of revenue for our portfolio companies the other day, and realized we are are not hiring nearly as much as we used to for every dollar of revenue we bring in.
It's almost entirely driven by AI tools driving productivity growth. For example, creative teams can simply output more when they can do things like remove a blemish with Lightroom/Photoshop's AI tool instead of the old school way.
Or customer service can answer almost all basic inquiries via AI since most helpdesks integrate with the eCommerce platform we use.
Middle management can answer more difficult technical questions or teach themselves certain things with AI. If Google could get you an answer ~40% of the time, AI can get you an answer ~85%+ of the time. An example here is that we had someone on our team designing the layout for a new production facility. He got a lot of coaching from AI -> delivered a product to the management team that was ~3x better than expected -> WAY less back and forth -> higher output.
Another example is our offshore teams. If they had English difficulty before...that is more or less solved.
I guess my Q is, how many of you are starting to bake this into models? Obviously we are still in the early innings...but it seems like the impact is going to be huge?
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