The rapid growth of AI products isn't due to a sudden market desire for AI technology itself. Rather, AI enables superior solutions for long-standing customer problems that were previously addressed with inadequate options. The demand existed long before the AI-powered supply arrived to meet it.

The most immediate ROI for AI sales agents is not replacing existing salespeople, but engaging the long tail of low-value leads or free trial users in a PLG motion. This "AI-Led Growth" creates a business model where none existed before.

The narrative of AI destroying jobs misses a key point: AI allows companies to 'hire software for a dollar' for tasks that were never economical to assign to humans. This will unlock new services and expand the economy, creating demand in areas that previously didn't exist.

Traditional software automated standardized processes but struggled with complex human interactions like call center support. Generative AI's ability to understand natural language allows software to automate these nuanced tasks, dramatically expanding the total addressable market by tackling problems that were previously impossible to solve with code.

Flexport uses AI agents for tasks that were previously skipped because they were too costly for human employees, like calling warehouses to confirm addresses. This shows that AI's value isn't just in replacing existing work, but in performing new, marginally valuable tasks at a scale that is finally economical.

AI's initial workforce impact is absorbing future hiring needs, not causing layoffs. Most support teams are so understaffed ("underwater") that AI simply helps them catch up with existing demand, allowing them to freeze headcount growth.

The most significant value from AI is not in automating existing tasks, but in performing work that was previously too costly or complex for an organization to attempt. This creates entirely new capabilities, like analyzing every single purchase order for hidden patterns, thereby unlocking new enterprise value.

A fractional CTO sees AI's impact in two ways: enhancing current capabilities (making things faster or better) or adding entirely new ones previously out of reach. For example, AI enables 24/7 support for an SMB laundromat, a function that was previously financially unfeasible.

Industries with fixed demand (accounting) will see job losses as AI handles the necessary workload. Sectors with expandable demand (software engineering) may absorb AI's productivity gains by creating vastly more output, thus preserving jobs for a longer period.