Victor Lazarte from Benchmark warns that AI is set to replace jobs, especially in the legal and recruiting fields. He expresses skepticism over companies claiming AI will only enhance roles. Lazarte predicts smaller, more valuable companies, while cautioning about potential societal inequalities. As AI continues to grow, there are deeper implications for the workforce landscape.
In a world dominated by whispers of innovation, Victor Lazarte, a general partner at Benchmark, doesn’t mince words. He states bluntly on a recent episode of the Twenty Minute VC podcast that artificial intelligence is not merely tweaking job roles; it’s here to fully replace them. Notably, he points to two professions that should be bracing for impact: lawyers and recruiters. The assertion packs a punch, especially in circles used to the prevailing narrative about tech enhancing, rather than displacing, human workers.
“Big companies talk about, like, ‘AI isn’t replacing people, it’s augmenting them.’ This is bullshit. It’s fully replacing people,” Lazarte asserted, echoing the skepticism many harbor about corporate assurances. He believes that the nature of legal work is shifting, and law school graduates should reconsider their future careers. In just three short years, “there’s not going to be that many things” they could do that AI can’t replicate. The future landscape seems terribly stark for fresh associates who typically handle the tedious tasks in law firms.
It’s a sentiment that resonates in today’s rapidly changing legal landscape. Todd Itami, an attorney at Covington & Burling, recently declared at a legal tech conference that lawyers are essentially “dinosaurs” needing to adapt. Embracing AI is now deemed imperative for survival, as the industry buzzes with the prospect of AI streamlining the grunt work.
Recruiters aren’t escaping the gaze of automation either. New startups are racing to bring AI into the hiring process. Just last March, OptimHire garnered $5 million to fuel its vision of replacing traditional recruiters with AI technology. This new AI agent, dubbed OptimAI Recruiter, promises rapid sourcing of candidates, conducting preliminary screening calls, and managing interview schedules, effectively cutting down the myriad tasks that traditionally bog down human teams.
Reports are surfacing that human resource departments are increasingly leaning on AI tools for various aspects of recruitment, from scanning resumes to creating short lists. Many in the tech industry believe this move won’t just expedite the hiring process but could also empower job seekers in unprecedented ways.
But while AI threatens to upend jobs, Lazarte argues it simultaneously holds the key to unlocking new levels of growth in businesses. He paints a picture of companies that could potentially grow terribly small yet incredibly lucrative, noting that with reduced labor costs and heightened productivity, smaller teams could drive up enterprise value significantly. “You’re going to have these trillion-dollar companies being done by very small teams,” he explained, painting a vivid picture of future business dynamics.
However, there’s a cautionary tone to his prognosis. The rise of these AI-driven micro-businesses, while potentially enriching for shareholders, might also exacerbate societal inequalities. As he puts it, the benefits of AI could become a double-edged sword — there’s great potential for societal enhancement, but the risks of widening economic divides loom larger than ever.
Lazarte goes further, suggesting that AI’s encroachment is not simply confined to job markets. He foresees a future intertwined with technology so deeply that everyday life may be guided by an app dictating our daily tasks. “Pretty soon we’re going to have an app that just tells us what to do all day — and we’re going to love it,” he asserts, hinting at a future where obedience to machines becomes the norm. It’s an unsettling yet intriguing vision of a world where humans and AI intertwine more than we might expect.
Victor Lazarte’s bold remarks signal a troubling shift in the job market, particularly for lawyers and recruiters, as AI technology rapidly evolves. With the potential for businesses to become leaner yet significantly more profitable, the dual-edged implications of this technology pose a risk of deepening economic divides. As we look toward a future where AI’s grip tightens, it becomes crucial for affected professions to adapt or risk becoming obsolete in an increasingly automated landscape.
Original Source: www.businessinsider.com
