Rampell: The AI labor market is vastly larger than traditional software
Alex Rampell · “Every small business should run itself” | Lassie with a16z · Jul 29, 2026 · at 14:24
Alex Rampell (General Partner at a16z) discusses why replacing administrative labor with autonomous AI creates a much larger total addressable market than conventional SaaS software.
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“That's where the market just expands massively once you throw in labor, because it's like you have this tiny, tiny market for software, which by the way is not that tiny. It's like a trillion dollars. Concentrically around that, you have like, you know, big on financial transactions. That's even bigger. That's why Visa has a very big market cap. But then you go, the concentric circle around that is just like, you know, it really is orders of magnitude bigger.”
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