Software going after Labor Spend
The concept that AI software will expand its Total Addressable Market (TAM) by performing tasks currently done by human labor, rather than just augmenting it.
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7/20/2025, 10:25:50 PM
entitydetail.last_updated
7/20/2025, 10:45:56 PM
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7/20/2025, 10:37:24 PM
Summary
The concept of "software going after labor spend" describes a significant technological shift, primarily driven by advancements in AI innovation and the emergence of AI agents. This trend, as articulated by tech leaders like Aaron Levie, suggests that software will increasingly automate and perform tasks traditionally executed by human labor, thereby fundamentally altering existing business models and directly impacting labor expenditures. While the underlying technologies, such as reasoning models, are experiencing exponential progress, the practical deployment of this software faces considerable challenges, including issues like AI hallucination, leading many enterprises to currently reside in the "trough of disillusionment" phase of the technology hype cycle. This topic was discussed in the context of a broader review of economic and technological trends, including the hypothetical "First 100 Days of Trump 2.0" administration.
Referenced in 1 Document
Research Data
Extracted Attributes
Goal
Transform business models
Mechanism
AI Agents automating human tasks
Concept Type
Technological Trend
Key Obstacle
AI Hallucination
Primary Enabler
AI Innovation
Associated Economic Philosophy
Accelerationism
Current Development Stage (Hype Cycle)
Trough of Disillusionment
Wikipedia
View on WikipediaSoftware engineering
Software engineering is a branch of both computer science and engineering focused on designing, developing, testing, and maintaining software applications. It involves applying engineering principles and computer programming expertise to develop software systems that meet user needs. The terms programmer and coder overlap software engineer, but they imply only the construction aspect of a typical software engineer workload. A software engineer applies a software development process, which involves defining, implementing, testing, managing, and maintaining software systems, as well as developing the software development process itself.
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