Services markets are typically 10x larger than software markets; if AI replaces services (call center agents, insurance form fillers, back-office workers), the capex payoff is enormous because it targets the much larger services market, not just software spend.
causalpending
Speaker
Brad GerstnerEvidence Quote
“Services markets usually 10x bigger than software markets if we look at how can spend attack it budgets as a whole it's not just let's replace this software spend with this software spend it's let's replace these call center agents let's replace these insurance people filling out forms in the back office”
Source
Ep19. State of Venture, AI Scaling, Elections | BG2 w/ Bill Gurley, Brad Gerstner, & Jamin Ball— Bg2 PodCreated: 8/10/2026, 10:49:01 PM
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