AI enables "software does labor" business models in industries previously deemed too small for specialized software, like dental offices or trial law. By replacing or augmenting specific labor tasks, startups can justify high-value contracts in markets that historically wouldn't pay for traditional SaaS tools.

Before replacing human workers, AI expands the total addressable market by making services economically viable for previously unserved segments. For instance, Intercom customers now offer AI support to their free users, something they could never afford with human agents.

Most companies are not Vanguard tech firms. Rather than pursuing speculative, high-failure-rate AI projects, small and medium-sized businesses will see a faster and more reliable ROI by using existing AI tools to automate tedious, routine internal processes.

For service-based businesses, speed-to-lead is everything. An AI-powered office manager using advanced voice AI can provide 24/7, instant responses to inquiries. This isn't just a cost-saving measure; it's a revenue-generating tool that captures leads competitors miss due to slow, manual follow-up, dramatically increasing the likelihood of winning the job.

Silicon Valley is biased towards open-ended knowledge work like software engineering. However, a larger, often ignored opportunity for AI lies in automating the repeatable, deterministic business processes that power most of the non-tech economy, from customer support to operations.

VCs have traditionally ignored the massive $16T services sector due to its low margins. AI automation can fundamentally change this by eliminating repetitive tasks, allowing these companies to achieve margin profiles similar to software businesses, thus making the sector newly viable for venture investment.

The most profitable way to leverage AI tools without code is to package their output as a managed service. Instead of selling access to an AI, sell lead generation, process automation, or financial analysis on a monthly retainer, with the AI doing the heavy lifting behind the scenes.

For companies wondering where to start with AI, target the most labor-intensive, process-driven functions. Customer support is an ideal starting point, as AI can handle repetitive tasks, leading to lower costs, faster response times, and an improved customer experience while freeing up human agents for more complex issues.

AI will handle up to 80% of customer inquiries, allowing businesses to capture leads and provide support around the clock. This effectively eliminates the "9 to 5" limitation, enabling small businesses to compete with larger enterprises by never missing a customer interaction, regardless of the time.