TLDR Tech / Founders
AI's Biggest Winners Have the Lowest Margins
The biggest winners of AI are businesses nobody would ever call AI companies. AI transformation creates value through revenue, cost, and risk. For low-margin businesses, the biggest lever is cost - even small reductions in operating expenses can create an outsized increase in earnings. The lowest-margin businesses can finally attack the coordination costs that have kept them structurally low-margin for decades. The next wave of AI winners will put agents behind the workflows of low-margin businesses and let the savings show up quietly in the operating model.
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