At a dinner with leaders of nine-figure AI companies, the host asks where AI actually expands margins. One cites a multi-billion-dollar firm cutting customer service costs through automation. But in software engineering, AI boosts output without reducing headcount, so the margin gain stays unclear.
This dinner was 9 to 10 figure AI operators. We're talking about, you know, 9, 10 figure companies, like revenue-wise. One of the first questions I asked was, where are you actually seeing margin expansion with AI? Which is a very important question because we all like to talk about stuff we're doing right now. The table struggled to answer this one. One of the guys was very clear for us. This is a multi-billion dollar company. He's like, we're seeing margin expansion clearly in customer service. So customer service, we're seeing that because you look at a Fin, for example, it can handle a lot of these support tickets. And so you're actually saving significantly there. But in other areas, Not as much, right? For coding, you could say, yes, we're getting more output, but what ends up happening is you need to hire more engineers anyway. So it's not like anybody has clear answers.
