The best barometer for AI's enterprise value is not replacing the bottom 5% of workers. A better goal is empowering most employees to become 10x more productive. This reframes the AI conversation from a cost-cutting tool to a massive value-creation engine through human-AI partnership.

AI adoption is not limited to tech and white-collar work; it has become a universal business consideration. For example, a lumber mill in Vermont is using AI to sort planks, a task for which they struggled to hire skilled labor. This shows AI is being deployed as a practical solution to specific, localized labor shortages in legacy industries.

Don't think of AI as replacing roles. Instead, envision a new organizational structure where every human employee manages a team of their own specialized AI agents. This model enhances individual capabilities without eliminating the human team, making everyone more effective.

As AI evolves from single-task tools to autonomous agents, the human role transforms. Instead of simply using AI, professionals will need to manage and oversee multiple AI agents, ensuring their actions are safe, ethical, and aligned with business goals, acting as a critical control layer.

Instead of repeatedly performing tasks, knowledge workers will train AI agents by creating "evals"—data sets that teach the AI how to handle specific workflows. This fundamental shift means the economy will transition from paying for human execution to paying for human training data.

Manufacturing faces a crisis as veterans with 30+ years of experience retire, taking unwritten operational knowledge with them. Dirac's software addresses this by creating a system to document complex assembly processes, safeguarding against knowledge loss and enabling less experienced workers to perform high-skill tasks.

A key value of AI agents is rediscovering "lost" institutional knowledge. By analyzing historical experimental data, agents can prevent redundant work. For example, an agent found a previous study on mouse models that saved a company eight months and significant cost, surfacing data from an acquired company where the original scientists were gone.

The race to build AI data centers has created a severe labor shortage for specialized engineers. The demand is so high that companies are flying teams of engineers on private jets between construction sites, a practice typically reserved for C-suite executives, highlighting a critical bottleneck in the AI supply chain.

Elad Gil argues that the total addressable market for AI companies is not limited to traditional seat-based software pricing. Instead, it encompasses the multi-trillion dollar human labor market that AI can augment or automate.