Our findings from bringing businesses to new heights, and what we think they can let go of on the way up.

All articles

22

Every piece by category and reading series, with what each one is about.

A Brave New World

03

Business and artificial intelligence: the market, its trends and where we believe it is heading.

  1. 01Market Hype + NoiseThe loudest AI claims usually carry the least evidence.Coming soon
  2. 02Infertile GroundThe cycle of AI adoption we have watched on repeat for a year, and the moat hiding underneath it.Coming soon
  3. 03AI: A Neurological MirrorWhat working with the models reveals about how we think.Coming soon

Defining AI-Native

04

What an AI-native business is, and the path a company takes to become one.

  1. 01Run your transformation like a productBusiness is a loop. Map it on the wheel, find the weak wedge worth the most, and move one number.8 min read
  2. 02Most of AI is under the waterlineEight levels from a chat window to a business that shapes itself, and the blockers on the way.15 min read
  3. 03The Birth of AI-Native ServicesCompounding AI leverage is visible, but investors still disagree on what to call or buy.Coming soon
  4. 04The Jettison ThesisWhy hyper-niche consultancies, why now, and why the firms that let go of weight are the ones that rise.Coming soon

Our AI-Native Services Thesis

13

Why services built on AI compound, and how the market splits around them.

The K Articles

06
  1. 01Emergence Capital’s BetRead Emergence Capital’s published thesis alongside its portfolio: who buys the outcome, and what happens to the operator doing the work today?Coming soon
  2. 02The K-Shaped MarketEvery general-purpose technology changes how value is captured, and AI is tracing a familiar split.Coming soon
  3. 03Why Technology Revolutions Start with ServicesTransformative technologies repeatedly reach the market through services that package a finished outcome. Trace the 150-year pattern to see why the service layer changes shape without disappearing.Coming soon
  4. 04Top of KThe rising arm of the K sells outcomes that could not previously be bought. Measure value created, rather than delivery cost, to understand why pricing can keep climbing.Coming soon
  5. 05Bottom of KThe falling arm of the K takes known work and delivers the same result for less. Its advantage is legible, immediate, and driven by price.Coming soon
  6. 06Moats and Warnings in the MiddleWhich moats in the middle of the K are eroding, which buy time, and which can compound.Coming soon

Physics of an AI-Native Service

07
  1. 01Created-Value TAMCreated-value TAM measures money that exists only because a new outcome became possible. Use it to size the top of the K beyond today's software and labor budgets.Coming soon
  2. 02Organizational Metrics + StructureTraditional service firms grow by adding people and optimizing utilization. AINS operators should track leverage, margin trajectory, and outcome per unit of human and compute.Coming soon
  3. 03Revenue per Employee (RPE)Rising revenue can mask weak product-market fit. Watch revenue per employee and margin trajectory together to see whether the operating model is truly compounding.Coming soon
  4. 04Recurring vs VolatileOutcome pricing creates upside, while acquirers still reward durable recurring revenue.Coming soon
  5. 05SaaS & AINSWhat AI-native services can borrow from software and services, and why the platform moves behind the work while the customer buys the outcome.Coming soon
  6. 06The Bottleneck at Top of KAt the top of the K, execution stops being the primary constraint. The ceiling is set by how much valuable possibility an operator can imagine.Coming soon
  7. 07The Bear Case for AI-Native ServicesFour companies raised about $750M selling AI and delivering with people, and failed.Coming soon

Making AI Work

02

Methods and pitfalls from putting AI to work inside a business.

  1. 01Reasoned Knowledge ArchitectureHow language agents build a shared understanding of a business, from raw records to repeatable processes.Coming soon
  2. 02Being Model AgnosticOwn the layers around the model, so a cheaper or stronger brain is a configuration change.Coming soon