Get the latest tech news
The AI services transformation may be harder than VCs think
Early warning signs suggest this whole services-industry metamorphosis may be more complicated than VCs anticipate.
The improved cash flow then provides ammunition for acquiring additional companies at higher prices than traditional buyers can afford, creating what proponents see as a lucrative flywheel. Eudia has signed up Fortune 100 clients including Chevron, Southwest Airlines, and Stripe, offering fixed-fee legal services powered by AI rather than traditional hourly billing. If they maintain current staffing levels to handle the additional work created by problematic AI output, the huge margin gains that VCs are counting on might never be realized.
Or read this on TechCrunch
