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AI is making human labor more cost-effective than software. George Sivulka, CEO of Hebbia, shared insights with venture fund Andreessen Horowitz (a16z) stating that artificial intelligence isn't replacing workers, but rather reshaping how work is structured.

He highlighted a significant shift:
for the first time, humans are cheaper than software. Consequently, companies are focusing on managing AI agents instead of building new models.

Yet, despite this trend, tech firms are still conducting large-scale layoffs while increasingly automating their processes with AI.
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