TLDR Tech / Fintech
System of Action Part 4: The case for the application layer
Foundation models alone are insufficient for reliably performing tasks within most businesses, as real-world jobs necessitate domain-specific workflows, deterministic software, permissions, semantics, human intervention, and continuous learning. This presents a significant opportunity for vertical SaaS incumbents and AI-native challengers to become the "System of Action" for their respective industries, potentially expanding the software Total Addressable Market (TAM) by roughly tenfold by capturing labor expenditures rather than just software budgets.
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