Business model shifts are the primary driver of AI software disruption
David George · a16z's David George on the Most Controversial Bet at a16z & Do Margins and Revenue Matter in AI? · 20VC with Harry Stebbings · Dec 15, 2025 · at 25:03
David George is a General Partner at Andreessen Horowitz (a16z). He presents a framework ranking how AI startups disrupt incumbent software companies.
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“If I were to rank order the level of disruption that is coming for these companies, business model shift is number one. And so, you know, we can talk about examples where that's most in practice today. You know, Sarah and Kimberly from our side led investment, investments in Decagon. Customer service is the most obvious one where you can certainly price, you know, based on a completion of a task and it's better, faster, cheaper value props to the customer. So if you are going to compete, With a seat based customer service thing, look out. That's hard. And that's a business model shift. So that's like the most disruptive piece. The second most disruptive piece I would argue is UI and workflow. And then the third most disruptive piece is access to data.”
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