Monday, 29 September, 2025
Why Turning Services into AI-Driven High-Margin Businesses Is Tougher Than VCs Expect
VCs are betting on converting traditional services firms—such as legal, IT, and consulting—into AI-powered, high-margin businesses. General Catalyst has committed $1.5 billion to this “creation + acquisition” model, aiming to automate 30–70% of core tasks. But early warning signs suggest the transition is harder than anticipated: employees are drowning in “workslop” (superficially AI-generated but low-quality work), and fixing those flaws eats into the margin gains.
Read full story at TechCrunch