AI removes the administrative "drag" (scheduling, invoicing) that caps the growth of physical service businesses like plumbing. While AI improves scalable tech work, it fundamentally changes the growth model for non-scalable, hands-on professions by offering unprecedented operational leverage.
A key distinction between technological eras: the internet democratized access to information, while AI democratizes access to operational leverage. This fundamentally changes how businesses, especially physical ones, can manage complexity, execute tasks, and ultimately scale their operations.
AI is drastically reducing software development costs. This makes it economically viable for small teams to build highly-focused applications for niche markets, such as specific skilled trades, that were previously too small to attract venture capital-backed software companies.
The perceived instability of tech and corporate jobs due to AI is driving a re-evaluation of career security. Parents and Gen Z now see skilled trades as a viable path to entrepreneurship, believing a "trade entrepreneur" has more long-term security than a typical tech employee.
Historically, technological advancements primarily displaced blue-collar workers first. The current AI revolution is unique because its most immediate and realized disruptions are targeting white-collar, knowledge-based roles, breaking a long-standing pattern of technological impact on the labor market.