Gil: Outcome-based AI pricing expands software TAM into human labor budgets
Elad Gil · No Priors Ep. 132 | With Decagon CEO and Co-Founder Jesse Zhang · Sep 18, 2025 · at 23:53
Investor Elad Gil explains to Decagon CEO Jesse Zhang how AI shifts the addressable market from IT software seats to broader labor expenditure.
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“It also really changes how you think about the total addressable markets for some of these things, because if you're charging per seat, you're really limited by the number of people working at the company. If you're charging per conversation or per some aspect of code written or other things, and really the market equivalent is sort of the people working in that sector, right? It's not actually the seats for the company. So yeah. You know, you're talking about their salaries versus seats, and so that's a pretty big shift in terms of how to think about TAM.”
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