Navin Chaddha, managing director of the venture firm Mayfield, predicts a major transformation in consulting, law, and accounting due to AI, especially in terms of cost structure. Emphasizing that AI can achieve software-like margins in traditionally labor-intensive sectors, he points out the value of targeting neglected markets instead of rivaling giants like Accenture. Chaddha cites the necessity for startups to offer services to the 30 million small businesses in the U.S. that lack access to skilled labor, advocating for outcome-based pricing models that charge clients only for AI services when used. He argues that, despite potential job displacement, AI will enable businesses to reimagine processes and expand markets. Companies like McKinsey will need to adapt or risk losing their client base as new, agile competitors emerge. Chaddha concludes that while current volatility may lead to losses for many, seasoned investors who maintain discipline can navigate the changing landscape effectively.
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