AI lets firms build compounding engines of institutional knowledge, says new essay

chetanp · x · 2026-09-16

The essay breaks company value into human capital (skills, judgment, relationships) and non-human capital. For the first time, professional services firms can encode institutional knowledge into AI systems that compound over time instead of walking out the door with employees. The author argues firms that succeed at building these knowledge flywheels will become massively more valuable than those that don't, calling it a new form of capital for the industry.

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