Bookmark: What fully automated firms will look like

“AI firms won’t be constrained by what’s scarce or abundant in human skill distributions – they can optimize for whatever abilities are most valuable."> What fully automated firms will look like

The concept of fully automated firms posits a radical transformation in business operations through artificial general intelligences (AGIs). Such entities would transcend the capabilities of human organizations by eliminating current bottlenecks in hiring and training. With AI, firms could replicate not only individual, high-caliber talent but also entire successful teams, propelling unprecedented growth and coordination. The operations of management and decision-making would see the most significant evolution, as AI managers—sans human limitations—could oversee extensive operations with the backing of scalable computing power. This would create highly specialized yet cohesive operations, devoid of the traditional principal-agent problem seen in human firms. With the seamless replication and merging of AI “employees,” knowledge transfer would reach levels unseen in any human-run organization. Future automated firms would leverage extensive AGI capabilities to innovate and propagate ideas efficiently, potentially resulting in larger and more efficient entities. However, the competitive landscape could remain dynamic through market mechanisms, ensuring firms continue to adapt by balancing internal efficiencies with external market demands