The 60-Year Office Sprint: From Filing Cabinets to AI 🏃‍♂️

Let's break down an fascinating observation from a16z about how businesses have evolved their core systems. It's a story that starts with paper and ends with AI, but the middle chapters are what really matter.

Think about it: For the past 60 years, businesses have been obsessed with one thing - digitizing their "system of record." In simple terms, they've been trying to turn their filing cabinets into computers.

Why Did This Matter So Much? 📁
Every business needs to keep track of stuff:

• What they sold
• Who they sold it to
• How much money they made
• What's in their inventory

The Great Digital Migration:
First came the filing cabinets. Then basic computers. Then sophisticated databases. Then cloud systems. Each step was about doing the same thing better - storing and organizing information.

Here's the Plot Twist:
Companies invested MASSIVE amounts of money in these systems. Why? Because they believed that once everything was digital, magic would happen. Efficiency would skyrocket. Costs would plummet.

But Here's What Actually Happened:
These systems became really good at... being expensive filing cabinets. They stored information beautifully, but they didn't actually DO much with it.

Enter AI - The Game Changer:
Now we're seeing something different. AI isn't just another filing cabinet upgrade. It's like hiring a team of analysts who can actually USE all that stored information to:

• Spot patterns
• Make predictions
• Suggest actions
• Create new value

The Big Insight:
Those 60 years of digitization weren't wasted - they were preparation. All those digital records? They're becoming fuel for AI systems that can actually turn information into action.

Credit: Based on insights from a16z's "AI Turns Capital to Labor"

Input Coffee, Output Code: How AI Will Turn Capital into Labor | Andreessen Horowitz

Today, thanks to AI, we are witnessing potentially the greatest transmutation in history. Software becomes labor. It’s the new E=MC2.

Andreessen HorowitzAlex Rampell

a16z, short for Andreessen Horowitz, is a prominent venture capital (VC) firm based in Silicon Valley. Founded in 2009 by Marc Andreessen and Ben Horowitz, the firm invests in a variety of industries, with a focus on technology and innovation. (some of the smartest guys in the room!)