AI won’t shrink software demand—it may unlock a much larger services market

joecole · x · 2026-07-28

A Sequoia-style thesis argues that cheaper code won’t reduce the need for developers; it will unlock more software demand.

The cited idea is that AI shifts value from selling copilots to selling outcomes: book closing, contract review, claims handling, and other service work at software margins. The post highlights a key ratio — roughly $1 spent on software versus $6 on services — and argues that winners will look like services firms rebuilt on software infrastructure, not just copilot vendors.

Related event: Sequoia: Next Trillion-Dollar AI Company Will Sell Services(2 posts)→

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