The value in AI services has shifted from labeling simple data to generating complex, workflow-specific data for agentic AI. This requires research DNA and real-world enterprise deployment—a model Turing calls a "research accelerator," not a data labeling company.
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LLMs have hit a wall by scraping nearly all available public data. The next phase of AI development and competitive differentiation will come from training models on high-quality, proprietary data generated by human experts. This creates a booming "data as a service" industry for companies like Micro One that recruit and manage these experts.
Enterprises struggle to get value from AI due to a lack of iterative, data-science expertise. The winning model for AI companies isn't just selling APIs, but embedding "forward deployment" teams of engineers and scientists to co-create solutions, closing the gap between prototype and production value.
For years, access to compute was the primary bottleneck in AI development. Now, as public web data is largely exhausted, the limiting factor is access to high-quality, proprietary data from enterprises and human experts. This shifts the focus from building massive infrastructure to forming data partnerships and expertise.
The future of valuable AI lies not in models trained on the abundant public internet, but in those built on scarce, proprietary data. For fields like robotics and biology, this data doesn't exist to be scraped; it must be actively created, making the data generation process itself the key competitive moat.
The ease of building applications on top of powerful LLMs will lead companies to create their own custom software instead of buying third-party SaaS products. This shift, combined with the risk of foundation models moving up the stack, signals the end of the traditional SaaS era.
Instead of focusing on foundational models, software engineers should target the creation of AI "agents." These are automated workflows designed to handle specific, repetitive business chores within departments like customer support, sales, or HR. This is where companies see immediate value and are willing to invest.
Mercore's $500M revenue in 17 months highlights a shift in AI training. The focus is moving from low-paid data labelers to a marketplace of elite experts like doctors and lawyers providing high-quality, nuanced data. This creates a new, lucrative gig economy for top-tier professionals.
A key strategy for labs like Anthropic is automating AI research itself. By building models that can perform the tasks of AI researchers, they aim to create a feedback loop that dramatically accelerates the pace of innovation.
The transition from AI as a productivity tool (co-pilot) to an autonomous agent integrated into team workflows represents a quantum leap in value creation. This shift from efficiency enhancement to completing material tasks independently is where massive revenue opportunities lie.
Data is becoming more expensive not from scarcity, but because the work has evolved. Simple labeling is over. Costs are now driven by the need for pricey domain experts for specialized data preparation and creative teams to build complex, synthetic environments for training agents.
