The "Service-as-a-Software" Thesis
VC David Roberts is predicting the next big play is "Service-as-a-Software," where the expertise of entire firms (like ad agencies or law firms) is encoded into AI agents. The thesis argues that as UIs get commoditized by major players, the real value will be in infinitely scalable, specialized services.
The core idea behind "Service-as-a-Software" is a fundamental shift from selling tools (Software-as-a-Service) to delivering outcomes. Instead of a law firm subscribing to a legal research database, it would employ an AI agent that delivers a completed brief. This model moves the responsibility of achieving the desired result from the customer to the AI-powered service provider. This transformation is powered by agentic AI, which can manage complex, multi-step workflows with minimal human oversight. Unlike simple automation, these AI agents can plan, reason, and execute tasks autonomously, effectively acting as a digital employee. For startups, this means the ability to scale complex operations without a proportional increase in headcount, a factor VCs now heavily favor. The legal and advertising industries are early adopters of this model, with a new category of "AI-native" firms emerging. These companies are built from the ground up with AI integrated into their core service delivery. For example, AI-native law firms are using this approach to handle routine legal tasks, moving beyond the traditional billable hour to value-based pricing. In advertising, "AI-first" agencies are using machine learning to generate and optimize ad creative, automate media buying, and provide predictive analytics for campaign strategies. Companies like Omneky and Smartly.io function as AI-powered partners that automate the entire advertising process, from creative development to performance analysis. This trend is also taking root in the Los Angeles tech scene, with a growing number of startups focused on agentic AI. Companies like Synergetics.ai, founded in 2023, are developing platforms for managing autonomous AI agents for businesses. This local ecosystem of AI talent and innovation is a key area to watch for the next wave of "Service-as-a-Software" companies. For founders, this signals a significant opportunity to build leaner, more efficient companies that can compete with much larger incumbents. Instead of building a large team, founders can leverage AI agents to handle core business functions like sales, marketing, and even financial analysis. This shift allows for a greater focus on high-level strategy and product development, which is becoming a key differentiator in the current venture landscape.
