Can Automation Solve the Talent Crunch? The Layoffs Continue, David v. Goliath in AI, and Bootstrapping a Business
Social Leverage Letter | Issue #75
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Denk’s advice to aspiring entrepreneurs? “Start with something you have a true competency in,” he told venture capital firm Social Leverage. “I’ve attempted several side projects in industries and disciplines that were flashy and popular, but I had no business being there. Being able to really command the space you occupy due to experience or reputation really helps legitimize your business and have others … believe in you.”
Automation increases operational efficiency and profitability, and helps address the tech talent shortage. Far from adversarial, RPA and AI should be seen as complementary to humans – the benefits outweigh the angst. These tools and processes provide a competitive advantage while allowing companies to remain agile in uncertain economic times.
Last year over 140,000 jobs were cut at tech companies. Tech companies to include Spotify, IBM, Qualtrics, Carta, and Verily have announced mass layoffs, with over 58,000 workers slated to lose their jobs due to overzealous hiring in recent years, rising inflation, and a tumultuous stock market.
Incumbents have advantages in distribution, proprietary data, and capital that give them an out-sized advantage in the AI space. Startups can compete by targeting enterprise customers, going vertical, and moving fast. A balance of optimism and pessimism is required to fight the incumbents and build something valuable.
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