Crosby's business model is to be an AI-powered law firm, selling end-to-end legal work rather than a software tool. This allows them to fully leverage automation and capture the entire value of the work performed, a more defensible strategy than selling a legal copilot that competes with foundation models.

Founders are stuck in a SaaS mindset, selling tools to existing service providers. The bigger opportunity is to build new, AI-first service companies (e.g., accounting, legal) that use AI to deliver a superior end-to-end solution directly to customers.

Instead of selling AI tools to incumbents (e.g., law firms who bill by the hour), build an AI-first service that delivers the end result directly to the customer. This avoids conflicts of interest and captures more value.

Selling software tools puts companies in direct competition with ever-improving foundation models. Sequoia Capital's Julien Bek argues the defensible play is to build a "software business that masquerades as a services firm," selling completed work and capturing the larger services market.

Instead of selling AI co-pilots, legal tech startup Crosby operates as a full-stack law firm using AI internally. This model allows them to continuously re-orchestrate workflows between human lawyers and AI as models improve. This captures the entire value of automation rather than just the limited margin from selling a software tool to other firms.

Conveyo’s model is to provide infrastructure that realigns incentives between disconnected parties rather than replacing them. By acting as the sole, independent party managing the process end-to-end, they introduce accountability and transparency, making the entire system more efficient.

To penetrate tech-resistant markets like personal injury law, the winning model is not selling AI software but offering an AI-powered service. Finch acts as an outsourced, AI-augmented paralegal team, an easier value proposition for firms to adopt than training existing staff on new, complex tools.

The business model is shifting from selling software to selling outcomes. Instead of creating a tool and inviting users, create pre-trained agents that perform valuable work. Then, invite companies to a workspace where this 'team' of AI employees is ready to start delivering value immediately.

Move beyond selling features by offering a "Business Process as a Service" (BPaaS) solution. This involves contracting directly on the business outcomes clients care about, such as cost savings or revenue optimization. This model delivers an end-to-end capability and aligns your success directly with your customer's, creating a powerful value proposition.