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AI-Native Service Companies

  • AI models are rapidly advancing beyond software engineering to execute complex professional tasks.
  • The market evolution from 2023 to 2025 focused on "AI co-pilots" that automate existing software rather than replacing the underlying services.
  • The investment thesis targets "AI-native companies" that sell direct services instead of software tools.
    • These companies often embed human professionals within their service delivery models.
    • The strategy leverages the fact that total global spending on services significantly exceeds spending on software.
    • High existing outsourcing rates in the service sector facilitate replacement via AI-native products.
  • Specific target sectors for investment include:
    • Insurance brokerage
    • Accounting, tax, and audit
    • Regulatory compliance
    • Healthcare administration
  • A specific call for submissions was issued to founders building "place as a service" companies in these domains.