Are services the new software? This Sequoia partner thinks so | Fortune
Summary
Sequoia partner Julien Bek argues that the next wave of large companies will sell outcomes—AI-powered services delivered with human expertise—rather than packaged software or hardware. He maps services on an intelligence-versus-judgment axis and identifies a sweet spot where tasks are automatable ('autopilots') yet still require human oversight, such as insurance broking, claims adjustment, simple legal work, and some accounting functions. Bek highlights advantages around outcome-based pricing and higher per-expert revenue, while warning that inference costs and enterprise go-to-market expenses remain important constraints. Investors and private equity are already exploring AI-native service models and roll-ups that inject AI efficiencies into legacy service businesses.
