Sequoia partner argues AI's future is selling outcomes as managed services, not selling software — reshaping how companies monetize AI

Julien Bek, a partner at venture firm Sequoia Capital, published an influential essay proposing that AI-native service firms (companies that use AI to deliver specific business results for clients) will generate more value than AI software product companies. Instead of selling an AI tool that customers operate themselves, these firms would charge clients for concrete outcomes — like a guaranteed reduction in customer service costs or faster loan approvals.